How Equine Business Owners Can Boost Their Cash-Flow
You can feel pretty lucky to be working with horses, but if there’s one thing we know, feeling lucky does not pay the bills. The costs associated with being in the horse industry can be high, and it can sometimes feel like things are on a knife-edge. Profits won’t always be as high as you’d like! But that’s not the real issue. You can survive if you’re turning over mountains of profit. You may not survive if you enter cash-flow difficulties. That’s the reason for the closure of most businesses, including equine businesses.
In this blog, we’re going to take a look at a few ways that entrepreneurs in this industry can boost their cash-flow — and reap the benefits of all the peace of mind that this can bring.
Prepare for the Lulls
Falling into cash-flow problems can feel like it came out of nowhere. But if you look a little closer, you might find that it shouldn’t have been a surprise at all. It’s worthwhile taking a look at your income from years gone by and seeing if you can spot a trend relating to your high/low periods of the year. If you can, then you’ll know that you need to scurry some money away in advance of the lulls. Plus, it’ll give you peace of mind that it’s only temporary and that the profitable months aren’t too far away!
The best way to boost your cash-flow is to boost your income. Of course, that sounds obvious to say — bringing in more money? Yes, please. There are plenty of ways that you can bring in more cash to your business. Look at the assets in your business that may be under utilised such as your vehicles. Can you hire out your trailers or lorries for self-drive? If you’re qualified & insured to transport horses for other people, why not look at sites such as https://www.shiply.com/us/load-board to see if there are horses near you that need moving. If so, you can take the job and bring in some extra cash. Plus there’s an opportunity to fill your vehicle with an alternative load for the return journey & make more money from your trip.
Also, remember that sometimes you need to spend money to make money. Could now be the time to ramp up your marketing campaigns? It’ll require an injection of cash, but if you plan it correctly, then it could bring a handsome return on your investment.
If you’re in a pinch and need to raise some cash, then look at selling in advance. If you run a riding school, for instance, then you could offer ten class packages (maybe for the price of nine?). This can lead to a huge surge in bookings that’ll bring in plenty of cash. Of course, you’ll need to factor in that it could mean a leaner period later on down the line. Aside from bringing in money, this will also help you to plan your schedule — you’ll know more or less how much work you have.
Part of the problem with cash-flow is, well, you still have plenty of bills to pay! Your suppliers expect their money, after all. But does it always have to be the same price? If it’s been a while since you negotiated your costs, then give it a try — you might be surprised.