A Guide to Starting Your Equestrian Business

Dreaming of turning your passion for horses into a profitable business? Brad shares the ins and outs of starting a successful equestrian venture.

Some key takeaways: 

• Finding Your Niche
• Market Research: Your Roadmap to Success
• Your Unique Selling Proposition (USP): What Sets You Apart?
• Building a Solid Foundation: Creating a Business Plan
• Navigating the Legal Landscape
• Choosing the Right Business Structure
• Marketing and Branding: Your Secret to Success
• Networking and Partnerships: Building Strong Connections
• Time Management and Financial Discipline
• Adaptability and Resilience: Thriving in a Changing Market

Listen to the full episode and discover essential tips for launching your equestrian business.

[00:00:00]
Host (Brad): Welcome to the Double D Trailers Podcast! Today we’re discussing a little bit of insight on starting a business in the equestrian industry. I’ll certainly do my best to share my experience and throw in my two cents.

I just turned 50 this past April, and I was 19 when I quit college and started my own business with my dad. That’s what we’ve been doing ever since. We initially started in farm equipment, and eventually transitioned to horse trailers and then into manufacturing. So that’s my background—I’ve had a lot of experience over the years, and I’m excited to share some of that with you.

[00:01:00]
One of the first things you want to do if you plan to start a business is identify your niche. It’s so important to figure out what your passion is and where your expertise lies within the industry. It’s all about solving problems or providing a solution to a pain point, whether you’re developing courses, specific horse hardware like saddles and tack, running an online business, providing consulting, hauling trailers, or even starting a riding facility with boarding and lessons. There are just so many things you can do.

I’ve had the privilege of interviewing quite a few folks on this podcast, and it’s been so much fun meeting them and learning about their ideas and experiences. Some of these people run large operations, so definitely check out some of our previous episodes if you haven’t already.

[00:02:00]
Once you identify your niche, you need to do some market research. There are several ways to do this. Back when we were getting into horse trailers and trailer manufacturing, I remember looking at industry information. This was before we had the internet or dial-up in our small town, so research was more difficult than it is today. I think there were around 9 million horses in the United States back then, with about 1 million in California. The industry has held its own over time, fluctuating a bit but overall remaining healthy.

Figure out your unique selling proposition—what will differentiate your business from others? When I was in the farm equipment business, I liked selling products with a good story. For example, I sold Vermeer hay balers for many years. It was fascinating meeting the founder of Vermeer and hearing his story of how he got into manufacturing hay balers. They were innovators, and I would share that story with customers, explaining how the product’s unique features could benefit them. It’s the same with our horse trailers today—features like the SafeTack and the SafeTack Reverse Load set us apart. We custom build everything online, and we don’t have a walk-in retail location, so we’re definitely different from our competitors.

[00:03:45]
Next, you want to create a solid business plan. Budgeting and forecasting are crucial. Things often take twice as long and cost twice as much as you initially think, so make sure you have flexibility in your funding. It’s very difficult to get funding for a startup, especially a small one. You may have to rely on personal loans or a home equity line, as banks generally don’t lend money easily to startups.

Banks prefer cash flow and historical data—things you don’t have when you’re just starting out. They might be more willing to lend if you have assets like land or buildings, but they’ll mostly consider your current income, not what you hope to earn from your new business venture. Partnerships and equity arrangements are other options, but bootstrapping is often simpler in the long run if you can make it work.

[00:05:00]
There are also legal considerations, such as licensing, permits, and liability insurance. These can vary, so make sure you’re covered. You’ll also need to decide on a business structure—whether a sole proprietorship, partnership, LLC, or S corporation. My personal preference is an S corporation. If you’re raising large amounts of funding, a C corporation might be better. Talk to your CPA to determine what’s best for you.

You also want to protect yourself against liability. If something goes wrong, like a trailer coming unhitched, people are going to sue both your business and you personally. I’ve been sued personally before, and even though we were ultimately fine, it was a stressful and costly experience. Make sure you minimize your exposure as much as possible.

[00:06:30]
Marketing and branding are so important. When we started manufacturing back in 1997, I would go to horse shows in North Carolina, South Carolina, Georgia, Virginia, and even up to Maryland and Pennsylvania. I’d set up my booth, display our trailers, and hand out flyers and business cards. People would come up and say, “Double who? I’ve never heard of you.” It’s crucial to create a strong brand identity. Building a brand takes a lifetime, but it can be destroyed in a day if you’re not careful. Focus on customer satisfaction and avoid making poor business decisions that can hurt your brand.

Today, the competition is stiff, whether you’re online or running a brick-and-mortar store. Digital marketing is critical, as is networking and forming partnerships. I can’t stress enough the importance of building relationships in the equine industry and maintaining those connections. You never know when a new introduction might change the course of your business.

[00:08:00]
We’re currently working on developing 3D-printed horse trailers and components. We have a mentor team in place and funding capability, though we haven’t needed to use it yet. It’s so important to lean on other professionals and business owners who have been successful. Time management is also key. When we first started, we’d open at 7:30 in the morning and close at 5:30 in the evening, staying late to finish up. We were even open on Saturdays. In my early 20s, I didn’t know much—I thought I did, but I didn’t. I was focused on growth, and I’d do everything myself until I was too busy and had to pass the task to someone else.

Looking back, I wish I’d hired qualified people earlier to handle specific tasks, but as a small business, we didn’t have the funds. Sometimes you just have to put in the hours until you can afford to grow.

[00:09:30]
Financial management is also critical. It’s easy to get into debt, and banks like to lend for tangible assets like buildings and land, which they understand. It’s important to manage cash flow carefully. Profit solves problems—whatever problem you’re facing, if you can make a profit, you can solve it. Be conservative with spending, especially in business, because markets fluctuate. For instance, we’re still dealing with the effects of overproduction in the horse trailer industry following COVID. During the pandemic, everyone wanted trailers, RVs, and boats, and now we’re dealing with an oversupply, which has impacted the new market.

Had we squandered our profits during the good years, we’d be struggling now. It’s important to manage your finances carefully and be prepared for lean times.

[00:11:00]
Lastly, you need to be adaptable and resilient. What worked last year might not work this year, and what worked yesterday may not work tomorrow. You need to keep innovating, adapting, and growing. We’re strictly online now, so if people can’t find our website, we won’t sell anything. It takes a lot of effort and teamwork to maintain our online presence, especially with search engines. Google often updates its algorithms, which can significantly impact our traffic. You need to be resilient and ready for setbacks.

It’s been a pleasure talking with you all today. I hope you found this helpful. If you have any questions, feel free to shoot me an email at brad@doubledtrailers.com. Thanks so much!

[End]