Our checklist for starting a horse business

There are several key aspects to consider when starting an agistment centre, training stable, stud farm or other horse related business to ensure success and sustainability. Whether you’re just starting your journey in entrepreneurship, or a seasoned operator, this short guide will assist you in checking off on some of the key aspects to address.

Do you dream of turning your passion for horses into your full time job? Or perhaps you are fortunate enough to have done so already! Starting and running your own business in the horse industry can be extremely rewarding. By providing valuable goods and services to the equestrian community, businesses support our horses and drive the growth of our sport.

Running an agistment centre, training stable, stud farm or business that sells products requires dedication and hard work. After a long day of managing horses, tasks and employees, the thought of sitting down to do paperwork is probably not that appealing. However, there are several key aspects to consider when starting a business to ensure success and sustainability. Whether you’re just starting your journey in entrepreneurship, or a seasoned operator, this short guide will assist you in checking off on some of the key aspects to address.

Business structure

One of the recommended first steps in launching a business is to decide on a business structure. Common business structures include:

• Sole trader: a person individually conducts business in his/her own name. A sole trader is personally liable for all the debts of the business.

• Company: a separate legal entity that has the same rights as a natural person, meaning it can incur debt, sue and be sued. Company members have limited liability.

• Partnership: two or more people carry on a business and distribute income or losses.

• Trust: a trustee holds the business for the benefit of others.

Each structure has its benefits and limitations. You should consider getting advice on this decision, as the structure will affect your tax, liability exposure and ongoing compliance requirements. A lawyer and an accountant will be able to assist in deciding on the structure that best suits your business and needs.

Terms of service

What products or services will your business sell to customers? How much will you charge? What happens if a customer doesn’t pay? Terms of service are the legal agreements between your business and your customers. This important document will set the foundation for smooth business operations and protect your business against common legal issues by outlining service expectations, payment terms, cancellation policies, liability waivers and more. For example, agistment contracts will include terms regarding liability for horses becoming ill or injured, damage to the property and powers regarding abandoned horses.

Well drafted terms and conditions can protect your business from lost revenue, wasted resources and reduce the risk of being sued. A skilled lawyer can work with you to reduce other areas of uncertainty and boost profitability by drafting practical and enforceable terms of service to protect your business.

Insurance

Insurance can help to protect your business, customers and your income in case something goes wrong. There are many different types of insurance – you may choose to have some types of insurance to reduce business risk and protect things like your assets and earnings. However, certain types of insurance may be required by law (such as workers’ compensation insurance). Your insurance broker will be able to recommend suitable insurance products and coverage for your business.

Employees

You have an obligation to comply with Australian employment law and provide a safe working environment if your business employs people. Identifying the correct minimum wages and entitlements for particular employees can be a complex task. Your lawyer will be able to provide advice on these issues and more when preparing the employment contracts for your staff.

In April 2024, Fair Work Inspectors visited approximately 20 agriculture businesses (including farms) in the Yarra Valley and Mornington Penisula to check that workers were getting the right pay. It's a reminder of the importance of compliance with workplace laws - particularly for those in the agriculture sector, as this remains a priority area for the Fair Work Ombudsman.

Working with or around horses poses many risks and hazards. You must manage the risks to the health and safety of your employees, customers, visitors and suppliers. Training and appropriate supervision should be provided for employees. Safety policies and risk management plans should also be implemented to reduce the risk of an accident and protect employees.

Website

In this digital day and age, a website is commonly used for business visibility and credibility. A professional design and attractive, user friendly layout, makes a great first impression on prospective customers. But have you thought about the fine print? Website “Terms of Use” are recommended to govern the access and use of your website by users. Terms of use may include disclaimers that limit the website owner’s liability for any issues that may arise from using the site, and protect intellectual property by specifying how content can be used. If you sell goods or services through your website, you should also include your full terms and conditions of service, in addition to the Terms of Use. This is because the terms and conditions govern the provision of goods and services, whereas Terms of Use govern the use of your website. A privacy policy is also recommended and may be legally required in some cases.

Record keeping

Businesses need to maintain a variety of records for legal, financial, employment and tax purposes. Proper record-keeping ensures compliance with regulatory requirements and tracks profitability of your business. Some examples of records include:

• Legal records: contracts with clients and suppliers, licences and permits, documents that demonstrate compliance with industry regulations and standards such as workplace safety policies and procedures.

• Financial records: to track profitability, invoices and receipts.

• Employment records: employee details including pay information and superannuation contribution amounts.

• Tax records: you must keep records of all transactions related to your business’ tax and superannuation affairs.  

You may consider engaging a bookkeeper to assist with managing financial records. Utilising software for accounting can automate many aspects of financial record-keeping, making the process more efficient.

Conclusion

The journey of launching and running a horse related business is more than just a professional endeavour; it’s a chance to make a meaningful impact on the equestrian world. While paperwork, regulatory compliance and taxes are far less glamorous than days spent with horses, it’s important to consider these aspects to set yourself up for success. For the readers who don’t have a business – spare a thought for your hard working providers who navigate the challenges of business ownership to bring you the goods and services you use on a daily basis. I am sure that they would appreciate a “thankyou” and Google review!

PURE Equine Law can assist you with starting your horse related business. Contact us today to speak with an equine lawyer with specialised knowledge in the horse industry.

*Information is general and not legal advice.