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What is the aim or purpose of strategy?  To improve our ability to shape and adapt to unfolding circumstances, so that we (as individuals or as groups or as a culture or as a nation-state) can SURVIVE ON OUR OWN TERMS. - Col. John Boyd

“Mortal danger is an effective antidote for fixed ideas.” - Field Marshall Erwin Rommel 

Today I want to discuss how we think about and react to the challenges small horse businesses face, as business owners or non-profit board members, executive directors, or staff.  A very smart man who changed the world said,

“Without changing our pattern of thought, we will not be able to solve the problems we created with our current pattern of thought”
- Albert Einstein
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Happy New Year!

Regardless of the kind of American equine facility you have, the Winter of 2008-2009 is a challenging one.

The good news is that well-established stables and equine non-profits will weather the current recession, as they have previous ones.  Perhaps capital improvements will be postponed, and not as many shows attended, and no contributions to the retirement savings, but thanks to a loyal core clientele that remains able to afford service at the same level, and a line of credit, they will tread water until the economy turns.  There will be breeders, brokers, show trainers, carriage businesses, therapeutic riding centers, and retirement stables that went into the recession in good financial shape, and will come out of it, perhaps bruised, but not beaten.

Now for the flip side of the coin.  There are many stables and horse welfare operations that are either five or less years old, or recently moved, or changed specialty, or took on significant additional debt for a new mortgage, horse trailer, arena cover, or other improvement prior to the downturn.  Many of these horse businesses and non-profits have been particularly hard-hit by the increases in operating expenses from feed, fuel, and bedding.  Those that support school, therapy, or rescue horses also have to pay more for farrier and veterinary care, since fuel costs affect those services.  Some start-up businesses as well as experienced operators are in counties harder hit by other businesses laying off workers, or by severe weather events that have not only increased costs, but slowed revenues.  For these equine professionals the timing is unfortunate if they do not have a big enough bankroll to stick it out more than a year.  Most don’t.  After all, most working adults do not have enough savings to last more than six weeks at their current lifestyle if their income was suddenly cut off.  Six weeks. Read the rest of this entry »