5 Steps on starting your own horse racing club

It is a great idea to have your own horse racing club, but to make it a profitable business you need excellent planning. Like running any business, it’s important to know the basics, from knowing your financials to managing staff and resources. Owners of horse racing clubs usually have much knowledge about the sport. They also have great empathy towards the animals and horse welfare is critical to the success of their business. In relation to the business aspects of starting a horse racing club, there are a number of essential requirements. We are going to discuss the 5 crucial steps to starting your own horse racing club.

1. The basic requirement for horse club

The basic starting point here is to arrange the finance for your horse racing club. To have a serious horse racing club, it usually requires a significant initial investment. One way is to obtain finance from a lending company, but first, you must calculate your expenses and profit margin. Use a markup calculator to find out how much you have to pay to the lending company, and what is your profit margin. You can create a syndicate for the horse racing club, which can share the financial burden. Markup calculator online can be a tool to manage your expenses and exceed the break-even point at the earliest time.

2. General expenses of the horse club

A significant expense of the horse racing club is hiring a professional horse trainer. The normal cost of professional horse trainers is usually around $130-$140 per day, however you can find some willing trainers that charge less or you can use provincial trainers. The rates are usually different when the horse is in training. Monthly training costs could amount to more than $4,000 per month. The trainers will argue they are only getting 10% of the income they charge per day. You can manage the ledger of the trainers by using the percentage markup calculator. If you don’t have your own property and stables, agistment fees could be upwards of $30-$45 per day. Other expenses of the horse racing club are feeding and keeping the animals safe and healthy. Like betting the trifecta in horse racing, it’s important to use these proven strategies to run a successful business.

3. Occasional expenses

Include occasional expenses in the monthly financials. Racehorses wear racing plates so you need a farrier to take care of these. Farrier costs can amount to $180 per requirement. Veterinarian costs are exorbitant depending on needs. Factor in dental fees too as their costs can be significant. The markup cost calculator is a great help in managing the expenses. Finding the best free horse racing tips is not easy and managing the financials of a horse racing club is no different. Having a plan and consulting the right people is half the battle.

4. Start to breed your own horses to reduce cost

Depending on your interests, expertise and knowledge, you may consider purchasing breeding stock for your horse racing club. There are many ways to do this but it is advisable seek expert help. Thoroughbred pedigrees are complex and relevant expertise is important to determine the type of breeding stock you would like to buy. When you are starting your horse racing club, you will want to invest in quality bloodstock which will form the foundation of your racing and breeding operation. You must decide whether to race horses suitable for the marathon distance of the Melbourne Cup or shorter events like the Golden Slipper. There are many ways to fund the purchase of the horses. It’s therefore helpful to consult with accountants and business advisors to maximise the opportunity, particularly from a tax perspective.

5. Registration of the club

Organisations such as Racing Victoria, Racing NSW, and the Victorian thoroughbred Breeders Association regulate the horse racing industry. Depending on the State in which you reside, syndications of racehorses must be registered with one of these organisations. Make sure you contact the relevant authority to find out how to register your syndicate. For the horse’s identity and pedigree, Racing Australia Limited keeps the Australian Stud Book, to maintain integrity of the data of all registered thoroughbreds. Horses not registered in the Australian Stud Book can race under some circumstances, however they cannot be included in the Stud Book. As a result, non-stud book stock are worthless as a breeding prospect.

By following these five steps, you can manage the financials associated with your business. The markup calculator online can be a great assistance in making the right financial decisions. Starting a horse racing club is a large undertaking so it’s worth spending the time to formulate the right plan.

Category: Horse Racing