1. Final Project Rose Hill Stables
Jordan Criss

2. Business Plan

3. 30 Mortgage Plan Principal & Interest $2,885 Property tax + $338
Bought for $775,000 with 20% down ($150,000)
30 year fixed mortgage plan with 3.790% interest rate
Principal & Interest $2,885
Property tax + $338
Home Insurance + $242
= $3,465/ month

4. Business Rates (Sole Proprietorship)
Lessons offered 7 days a week 8am-6pm for $35 group, $45 private
SWVHJA Shows offered once to twice a month (as schedule allows) to students with school horses or their own horses
-hauling available
Full stall board $500/mo.
-includes twice a day feeding, stall cleaning, hay check, water check, turn out, blanketing, de-worming services, treatment of minor wounds with owner notification of any wounds
Partial stall board $300/mo.
-essentially a stall rent, includes hay check, water check, owner notification of any wounds feeding and turn out is owner’s responsibility
Pasture board $200/mo., owner notification of any wounds
Working student opportunities available

5. Staff Starting with 1 full time worker started at $10 an hour
-cleaning stalls, feeding, turning out, blanketing, watering, checking hay, general barn cleaning
A barn manager will be hired as I acquire more horses, to be payed on an annual salary of $30k
-managing of feed schedule, manage injuries and vaccination, turn out schedule, state of facilities, purchasing feed/hay, managing of workers and payroll/scheduling
Working student in exchange for lessons or board
-teaching of lessons to appropriate experience levels, stall cleaning, feeding, turning out, watering, checking hay, general barn cleaning

6. Starting Horses On free lease from Johnny Atkinson from Marion, SC
-Ellie, 7 yo 16.2hh warmblood mare, advanced riders
-Red, 6 yo 16hh warmblood gelding, intermediate to advanced riders
-Twitter, 6 yo 14.1hh welsh gelding, beginner to intermediate riders
-Dixie, 20 yo 14.3hh welsh mare, beginner riders
-Brandy, 12 yo 14hh welsh mare, beginner riders
-Daisy, 15 yo 12.1hh welsh mare, beginner to intermediate riders

7. Property Description

8. The Property 19290 Vontay Road Maidens, VA 23102
3,126 sqft house with 4 beds 2 ½ baths
14 stall barn with matted stalls, large tack room with 14 tack boxes/lockers, two wash cross ties, feed room, bathroom, and storage
120’x72’ lighted covered arena
210’x115’lighted ourdoor arena
5 pastures, 4 paddocks, all 3 board fencing
Hay shed

12. Location Demographics
Population: 2,839
Average household value: $287,800
Average income per household: $93,221
Elementary School: South Anna
Middle School: Liberty
High School: Patrick Henry
Richmond is the largest city in the area
-Population: 54,751
-Average household value: $147,000
-Average income per household: $36,855

13. Cash Flow Statement

14. Balance Sheet

15. Balance Sheet Analysis

16. Total Current Assets (186,108.06) minus Total Current Liabilities (20,010.75)
= 166, Net Worth
Therefore, Rose Hill Stables is solvent.
Equity

17. Solvency: Debt to Asset Ratio
Total Liabilities (721,478.75) divided by Total Assets (288,321.06) =
Therefore, according to this ratio, Rose Hill Stables is insolvent. Because I bought such a large property, the long-term mortgage (under non-current liabilities) is bringing the ratio up. The business is solvent in the equity calculation because the large amount of mortgage to be payed over the next 29 years is not included in the calculation. Just because Rose Hill Stables is insolvent in this equation does not mean it cannot pay its bills for this fiscal year.
Solvency: Debt to Asset Ratio

18. Solvency: Equity to Asset Ratio
Total Equity (166,097.31) divided by Total Assets (288,321.06) =
Therefore, about approximately 58% of Rose Hill Stable’s assets are owned.
Solvency: Equity to Asset Ratio

19. Solvency: Debt to Equity Ratio
Total Liabilities (721,478.75) divided by Owners Equity (166,097.31)
= 4.344
Therefore, Rose Hill Stables is approaching insolvency. Again, the ratio is skewed because the mortgage is to be payed over the next 29 years, not the next fiscal year.
Solvency: Debt to Equity Ratio

20. Liquidity: Current Ratio
Total Current Assets (186,108.30) divided by Total Current Liabilities (20,010.75)
= 9.301
Therefore, Rose Hill Stables has high residual current asset value.
Liquidity: Current Ratio

21. Liquidity: Working Capital
Current Assets (186,108.30) minus Current Liabilities (20,010.75)
= 166,097.31
Therefore, Rose Hill Stables is liquid.
Liquidity: Working Capital

22. Income Statement

23. Conclusion

24. Looking forward, Rose Hill Stables could be a very profitable business if managed properly, maintains loyal clients, and expands. The business could go one of two ways; expanding or maintaining a small operation. Expanding would mean investing in more horses and therefore hiring at least one other full time worker and possibly a barn manager. That would also mean purchasing employee health insurance. Maintaining the small business would be doable, but paying off the $775,000 mortgage would most likely take more than 30 years based on the debt to equity ratio of and Rose Hill Stables tendency towards insolvency.
“Rose Hill Stables” is fairly reasonable and realistic business proposal if I had enough money to purchase that property.