In this four-part series, learn to manage your finances so you can achieve your goals as a trainer and business owner.
By Katie Navarra
You work every day to advance a horse’s level of training to his highest potential. Schooling and maintenance are necessary to achieve such an outcome. A horse’s training progression is a good analogy for the long-term development of your business. Like a horse, a business cannot grow, let alone thrive, without regular work.
“It’s important to manage your personal and business finances so that you can achieve your short- and long-term goals,” says Bette Brand, chief sales officer/external affairs for Farm Credit of the Virginias.
A financial plan can drive your business and enable you to achieve your objectives. Financial planning can help you find the delicate balance of bringing in enough income to support your lifestyle (and family), while covering all expenses associated with running the business, and growing a savings account to carry you through unplanned events. But the nature of the horse business can make it difficult to execute such a plan. Income fluctuates as horses come and go, and costly expenses add up. Tight margins and the greater economy create a source of income that’s less predictable than a traditional 9-to-5 office job.
The process of developing a financial plan can be overwhelming, and that’s the No. 1 reason most people never create one. Here, Brand and NRHA non pro rider and attorney Sally Piskun offer simple steps for getting started. Once you take the first step to begin the process, you’ll find the momentum to keep it going flows more easily.
Here are the four parts we’ll cover in this series:
Part 1: Mapping Out a Plan
Part 2: Expect the Unexpected
Part 3: Start Saving
Part 4: Find a Financial Planner
Find a Financial Planner
Financial planning helps secure the income needed to support yourself, your family, and your lifestyle; allows you to adequately price your services; and prepares your business for the unexpected. Going through the process of financial planning will help you understand your expenses, plan for the unexpected, and plan for taxes so that you can achieve those outcomes.
“It’s a delicate balance, but getting started is the most important aspect,” Piskun said.
The good news is you don’t have to “go it alone.” A quick Google search for financial planners in your area will return a long list of experts who can guide you.
“Many financial planners will offer the first consultation for no fee. They can help you create a basic budget and plan for savings,” Piskun said.
Financial planners often offer these preliminary services at no fee because they hope you’ll return over the long term to purchase insurance and get help with investing.
Financial planning is not a one-time process. It should be revisited and revised periodically.
“You can’t put it on a bookshelf and forget about it,” Brand asserted. “You have to look at it to see what has changed.”
Read the rest of this article at the links at the beginning of this post.
