The recession has been hard on the horse industry, maybe harder than some other industries, because it relies so heavily on discretionary income. With so many people out of work that means that discretionary income has evaporated for those folks, as they scurry to keep their personal basic survival bills paid. So what can you do to minimize the impact it has on your business? As the economy continues to throw a few bucks at us all, consider the following tips to ride out this recession.
1) There are a variety of strategies that most small businesses take when the going gets tough. The first is to find ways to cut costs. You can be much more selective and strategic about which shows and clinics you choose to attend and go to half as many. This saves you gas money, accommodations, and entry fees. It also frees up more time that you can redirect in other ways. Looking to cut costs is a no-brainer and is usually the natural starting place.
2) You can look for ways to increase operational efficiency. What resources do you have that aren’t being fully utilized? For example, do you have dead time in your arena? Consider other uses for the space during those hours including uses outside of the industry. Make sure you do the research to find out if additional insurance is required to bring in another group, and if doing this truly does result in positive financial gain for you before you make the move. Other resources include your horses – are they all earning their keep? Review your horse business for quality, safety and liability issues as part of this operational audit.
3) Learn a new skill on the business side of the house. There are lots of ways to get new professional development on line these days that are low cost and sometimes free. Marketing is a good topic to explore, and getting better at marketing may increase your income as you discover how to get your message out to more people in way that encourages them to contact you. Understanding more about the financial side of the house is another great skill to add to.
4) Develop new networks. Join a new association or networking club, get involved with your local chamber of commerce, volunteer for a cause close to your heart. This broadens who you know and who knows about you.
5) Stop looking for the world to be the way it was. It isn’t going to be that way again. That was then, and this is now. See it for how it’s changing and what direction it’s heading. Adapt your business to the new direction. You’ll discover the new opportunities that are emerging if you look ahead.
As the economy continues to improve you’ll find that you’ve sat the bucks out and have quite a nice horse under you to ride into the future.
