There are few industries that are as popular as the equestrian sector. A love of horses sees millions of pounds pumped into the sector on an annual basis, with industries such as the horse racing sector being among the most lucrative for the British government yearly.
Of course, there is a huge betting interest in the sport, with TwinSpires.com offering some of the most competitive markets. However, the sport also employs hundreds of thousands of people, ranging from those that are permanently employed by racetracks, yards, and office roles.
But, for those that are looking to take a hobby into a business venture, what are some of the challenges and potential solutions available to reach the next level?
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How Big Is The Equine Industry?
For those looking to make their way in the industry, it is important to first consider the size of the sector. According to EquineBusinessAssociation, the current market value of the industry stands at $300 billion.
There is certainly an opportunity for growth within the sector, as it is one of the few global industries in the world. The U.S. is second biggest market, as the industry is worth $102 bullion.
However, it is most prominent across the United Kingdom and Ireland, with the markets worth a staggering $6.2 billion and $1.3 billion, respectively. For those looking to start an equine business in the UK, it is a prime location, as it is globally recognised as the leading nation within the sector.
How to Scale Up?
The process of turning a hobby into a business will likely revolve around how scalable the venture is. Trying to make the offering diverse is a key to gaining traction, regardless of what the business idea is.
For example, if you are a stable that offer regular lessons for children, then a good scalable option would centre around offering trips for tourists, as you will have all the equipment required to make it a success. Focusing on the tourism trade will open another revenue stream, especially considering that lessons for children may be more popular in the summer holidays, but business could dry up over the winter months.
Lessons also don’t need to be tailored to just children either, as a growing number of adults are showing an interest in learning how to ride horses, meaning that this could be another scalable option. Understanding the routes in which you can take to scale your business will ultimately shape how successful the venture will be.
Can It Be Taken Globally?
One of the most notable ways to grow a business focuses around taking your product across the globe. Of course, this will be dependent on the service that you’re providing, and it will be better tailored to those that are selling items. For example, if you make your own bridles, this could be easily transferred to an international market if there is a good reputation on home soil.
Horse products have a huge reputation among riders, as they will typically look to get all of their gear from one supplier. Therefore, getting your foot in the door at the earliest possible stage could have a direct impact on the long-term growth that you can stand to enjoy.
A good method into ensuring this is by forming strategic partnerships. This can be with other equestrian businesses, such as riding schools and yards. Meanwhile, it can also lead to long-term relationships with sports stars at the higher level, as you could become a trusted supplier for one of the leading jockeys or event riders.
If they were to share their equipment on social media and tag your business, then there could be a long-standing benefit for the customers that you are able to attract. However, social media marketing can often be expensive with little reward.
Understanding The Costs
As part of running an expanded business, there will be more pressure on the finances. For the most part, for newcomers to the sector, they will look to gain the help of a trusted accountant, who can oversee the process and ensure that they are working within their means.
Going at it alone can often be a daunting prospect, as a business owner will need to understand the importance of healthy finances, taking into account running costs and the amount paid out to staff. Both of these aspects can have a direct impact on the growth that can be enjoyed, as a healthy turnaround will ensure that you are able to grow at a quicker rate.
However, if you are inexperienced and spending too much on costs, then growth will come at a considerably slower speed. Seeking out professional help is always a proven strategy when it comes to understanding aspects of business that don’t come as second nature.
