Many livery yards start from a passion for horses and horse ownership and turn into a business over time. Whilst yard owners, managers and their team undoubtedly know a lot about horses and their care, running a business isn’t always the number one priority. Running a livery yard needs to be profitable, otherwise the yard may be forced to close, particularly given the pressures of the current cost of living crisis.
The basic calculation to begin with is feed, bedding and staff costs divided by the number of horses; then add the next layer of costs: business rates, insurances, utility bills, yard and field maintenance, machinery, vehicles etc. Finally, the last set of costs that shouldn’t be forgotten when we’re looking at an accurate livery cost per stable and an accurate forecast: staff training, machinery maintenance, vehicle depreciation, muck heap management, and fencing.
Planning ahead is key to running a successful financial endeavour; if you don’t, you can be surprised by hidden costs that, when added up over the course of a year, will have a massive impact on your business. Even the best behaved horses are still huge animals that cause wear and tear on stables and the ground they walk on; field maintenance can be surprisingly costly. There is sometimes a misconception that grass in the field just grows but grass is not free! Yearly fertiliser, spraying and re-seeding are just a small part of what it takes to keep your fields and grass in good condition, and that’s before accounting for fencing costs. Small things like replacing batteries, connectors and electric fence handles that have broken all add up over a year. Keeping the yard and stables in tip-top condition is also costly. These examples are far from an exhaustive list; there is a plethora of things that need constant care which require a sustainable income.
Learn to choose your clients carefully – when they come to visit the yard, be clear and confident in the information you provide about your routine and yard rules so they can decide if your yard is a good fit for them and their horse. For example, if you don’t want anyone on site after 7pm, this could potentially be a stumbling block for someone who works late-night shifts. Clients with different interests can co-exist very easily; a mixture of happy hackers and liveries out competing every weekend can work well when everyone has a supportive attitude. It’s useful to stress to a potential client at this first visit that your ability to plan carefully is exactly what keeps the yard running smoothly. What we’re saying to prospective clients, as politely as possible, is that a yard will manage the unexpected far more efficiently if there are fewer changes with late notice or forgotten farrier visits. Whether dealing with ten or fifty horses, tasks and resources are planned in advance to keep each day running on track.
Clear communication with your liveries is so important. To run smoothly all yards need to have an organised system in place to manage everything from changes in routine, booking extra services or visits from outside professionals. Liveries need to know who the point of contact is for day to day bookings and general questions as well as the method of contact in an emergency. Everyone needs to know the yard rules very clearly and know there will be no tolerance for breaking them. The rules are there for everyone’s safety and well-being, both two-legged and four-legged kind. They also need to know before they arrive exactly what is included in their livery package and what extra services come with an extra cost; this will prevent misunderstandings later on.
Finding the right staff is one of the most important things you need to do to run a successful livery yard; their work ethic and attitude is crucial and good grooms are like gold dust!
A great groom will manage their time carefully and automatically re-plan and re-order their tasks as circumstances change, which they will, several times a day.
Whether you’re on a yard because it’s your passion, your hobby or your livelihood, everyone is there because they love the environment and the horses. Consideration and cooperation go a long way and it’s a two way street. Yard Owners and Managers wear many hats: equine first aider, head coach, pony clairvoyant, agony aunt, and mediator – all while trying to run a viable and successful business. Be fair, be firm and bill accurately because we want that yard to still be operating in ten years time!
