Succinctly describe the main points of your equine business: In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
It also could make you pay back taxes, plus interest, on the amount you underpaid. Below is a breakdown of how these funds will be used: This section should also mention how you plan to brand your business, such as making it a high-end equine facility that caters to people interested in thoroughbreds or the one-stop shop for local horse owners to rely on for health care, food and tack.
Getting pleasure out of owning or being involved with horses is common and acceptable, as long as the IRS doesn't perceive your business as purely recreational. We have a strong relationship with several associations and this means we are correctly positioned in getting reliable vendors for all the necessary services and products we intend to offer.
However, many equine enthusiasts are very wealthy people, and despite deleterious economic conditions, they will be able to continue to afford to purchase horses and related services. The Horse Farm, Inc. Step 1 Prepare an executive summary about your company, including the story of how and why you started a business about working with horses.
I redesigned my website to be much more user-friendly, but in the process lost the high Google ranking I had worked for years to achieve. Step 7 Develop profit-and-loss statements for five years that explain the land you need to lease or buy to run your equine facility.
The State of Tennessee also offers an excellent overview of the Development of a Business Plan which is thorough and in depth.
Doe intends to implement marketing campaigns that will effectively target upper middle and upper income individuals within the target market. Doe will register the Horse Farm with online portals so that potential customers can easily reach the business.
Veterinarians, grooms, jockeys and farriers contribute to the industry.
If you had two consecutive years of profit-making, for example, the IRS assumes you went into business for that purpose and deserve those business tax deductions.
To form one, you need to file the proper paperwork with your state government agency, put up capital, and assign division of shares stock in the corporation.
You might need to develop the entire plan before providing an honest look at the business concept. If the situation changes, explain how you are prepared to adapt. Mention any trends that might affect your business, such as growing tourism in your area creating a demand from people wanting to arrange for a horse to ride trails in a nearby park or a horse carriage ride for couples.
Instead, each partner reports his or her share of the profits or losses his or her own income tax return. Also outline possible risks or things that can go wrong and how you are prepared to deal with them. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
Although there are certain other advantages to the C corporation, one downside is that the earnings of these corporations are subject to double taxation.
This format can vary some, but the basics are similar. Foreign persons will have to report individually the transactions. The business consultant who also understands our business environment due to the fact that they are native to Oklahoma will look through our business concept to decide if our business will thrive, make profit and also favorably compete against other competitors in this line of business.
This can be anything from an increase in your grain costs to a competing facility opening near you. The IRS is more concerned about your intent to make a profit than whether you succeed. An LLC can help you avoid personal liability for debts or wrongs committed during business transactions.
The agency considers whether your bookkeeping is accurate and complete. You might also need to hire maintenance workers to keep the facility in prime condition.
Keep accurate business records, including how much time you spend on horse activities. The IRS looks at the amount of time you devote to horse activities and your past successes or failures in similar activities to gauge whether you expect to run a profitable business.
Step 6 Create a marketing strategy that shows how you will attract clients to your facility. Overview of a Basic Business Plan A basic business plan for your horse business should be developed for several reasons.
You also need a business plan that details the costs associated with all of the equipment and stock you must buy to make the facility viable.
While this is the simplest stable management structure, it leaves you wide open to liability. Development Plan Your development plan outlines everything you need to do from start to finish. Our Target Market Determining our target market is very important as it allows us better understand who our target market is while also helping us draft effective strategies that would help us gain a huge share of the market.
Tip Write the executive summary last, as it provides a synopsis of the business plan.Equine Business Description. In this section, describe the equine industry in your geographical region and how your business idea fits into it.
Several equine entrepreneurs, some just out of the starting gate, and others in full stride, were kind enough to share their business experiences—from lessons learned the hard way to the keys to their success.
Remember it’s not called “horse crazy” for nothing.
If you are audited in connection with your horse activity, the fact that you are operating in a corporate entity or an LLC entity, assuming that your minute books are kept up to date and that you have a clear business plan, will make a difference.
If you've never owned a business before, the term "business plan" may seem foreign to you. But a good one can make the difference between success and failure, profit and loss. A business plan is vital even if you already own horse property and plan to expand its use to boarding horses and giving lessons.
Horse Business, Marketing and Sports Performance Resources for Professional Equestrians. Free Horse Farm Business Plan For Raising Capital from Investors, Banks, or Grant Companies! Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below.Download