Things You'll Need
- Pen
- Paper
- Calculator
- Financial records/bills
Instructions
Before you build your riding stable, figure out what type of facility you can afford by comparing the initial cost of construction and continued cost of upkeep for your barn building, out buildings and fencing. These will all play a part in how you are able to manage your facility funds.
Record all of your expenses. List payments on the property, electricity, water, hay, feed, facility insurance, maintenance, employees and the regular care expenses of any horses owned by the facility. Adding all of the expenses will determine your total cost of operation.
List all of your sources of regular income. This includes boarders, lessons, training, trail rides or birthday party income. Add all the income sources to determine how much income your riding stable generates.
Subtract your expenses from your income. If your income exceeds your expenses, your goal in creating a budget is simply to ensure your riding facility continues to bring in more money than you spend on operation. Funding improvements to the facility with extra income is an option for attracting more business or making it easier to use.
If your income is less than your expenses, analyze your bills to determine what steps are needed to cut your operational costs. If you reach a point where nothing else can be cut from the expenses, figure out how to bring in more income. Generate revenue by advertising for more lesson students or boarders. Reduce expenses by selling horses you do not use regularly. Analyze each part of your business to figure out where you are losing money and where you are making money. Maximize the profitable parts of the business and cut your losses on the segments that are costing you money.
Continue to adjust your budget until you have brought it into check.