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- Boost Your Business: Unveiling the 3 Key Reasons for Digital Invoicing
In today’s equine industry, we've witnessed significant changes in various disciplines. While the United States Federation's membership is on the rise, the number of farms per state remains stagnant or is even declining. Why is that? Managing an equine business is undeniably challenging. Often pursued for the love of the sport and horses rather than profit, equine businesses demand a 24/7 commitment with little time for vacations. Yet, 2018 saw several stables in the industry generate substantial revenue, with investors entering the space, exemplified by Helgstrand Dressage's transaction, yielding over 51 million EUR in revenue. So, what sets them apart from your operation? The key is modernization. While we understand not everyone can produce top-level dressage horses, Helgstrand distinguished themselves by integrating horse care and business. They organized their operations and adopted tools enabling them to create a profit-generating business while potentially enjoying more leisure time. News flash – in 2024, some of these tools include leveraging equine specific technology for financial management. At CAVALL, we've identified three crucial reasons why it's now essential to have these tools within your barn. You should always (I repeat for the people in the back- always!) be paid on time. Reflect on the past year. How many times did you need to follow up with one (if not more) of your customers on payment? Often, customers unintentionally overlook payments due to multiple expenses. From their perspective, they're paying various providers, including you, their farrier, their vet, among many others. It's challenging to keep track. Consider this – in any other business, with such substantial transactions, business owners are not left waiting for payments. Gyms, for instance, use automated methods to charge standard subscriptions, and your horse’s board – which is a base fixed amount each month (excl. extra services) and significantly resembles a subscription - should too. If you did it, you should absolutely get credit for the services rendered to your horses. It is always fascinating to our team that 95% of trainers and stable managers we speak with typically track their activity on whiteboards or with pen and paper. Some stables might have a standard board which includes a set amount of services, others might be all inclusive and yet others might have several added services. Some end-customers (your riders) might even have different types of packages by horse or seasonal activity. The reality is equine businesses are complex. We conducted hundreds of interviews, we found that most stable managers often feel that they leave money on the table by forgetting or missing billing their customers the correct services. We can’t blame them because tracking this level of complexity manually is nearly impossible. Your cash flow should not be constantly catching up. In 2021, the cost of stable supplies (hay, fences, shavings, grain) has increased 21% YoY and post-pandemic impact slowed down horse sales. Your business now relies more than ever on customers maintaining their horses in your organization. Let’s briefly go back to point 1 and point 2, if (1) you are not paid on time and (2) the services rendered are not all accounted for – what ends up happening? Your cash flows (often tied to personal income) deeply suffer. We find that our customers are often in a position where they’re often paying out of pocket on behalf of their customers. At CAVALL, we believe this is unfair. 2024 is the time for thriving and innovative equine businesses. While technology might seem like a "forbidden" word in the equine industry due to the intimate relationship between horse and rider, at CAVALL, we 100% agree that technology should never interfere with this bond. Being paid on time and properly managing cash flows allows you to live better and, most importantly, focus on what matters most – delivering quality care for your horses and becoming a better horseman. Looking for a digital solution to better manage your finances? Check out: CAVALL (www.cavall-official.com).