Dave and Amy Walker are passionate about horses. They are meeting with Yot, a new venture Business Consultant, in the Coodman School of Besincss, to ask yee te write a Feavibility Stady for their venture. Brock effers this service free of charge to potential Entreprencurs in Niagara. Coodman does not charge for this service at it is considered great training for top Entreprencurship sudents. The stedents appreciate the epportunity to enhance their Resume and learn through helping others. Aitheugh Dave and Amy provide you with extensive information (see below), you will need to fill vome of the gaps. Add any ideas yee thiak appropriate etc. Dave and Aray wast to start a business, breoding thotoughbred hoeses to sell and some to keep. They also think they could be successful breeding and training thoroughliesds which are owned by clicats but entrusted to beard with Dave and Amy to breed and train the offypring (fools). In addition, Dave and Amy think there would also be demand for just the training of thorougbbred foalsyearlinge horses for clients. Additionally, chictes could beord regular (non thoroughbred) horses and ponies with them, especially during the winter months when it is very cold in Cacada. Dave and Amy would care for them and train the bones. This would prohably nocessitate an indoer trainitg arcas. They think they conld casily convert one of their existing large farm building for this purpose. They'd atwo like to nan a bone-riding robool for young people, as well as for adults. In addition, they wonder if they can ahe start bonc asd carriage training councs for aduits, and pony and carriage courses for yoang pcople. Dave says to you "astually we're keon to efficr anything to do with hories ( & ponies). The location of my Grandparents fam is ideal - weuth of Nugara Falls, close to the QEW, and close to Lake Erie. It shoeld attract US clients as well as Canadian." Dave grew up in Niagara. He lives with his Grandparens (Ralph ass Rita) as his parents werte killed in a cat accident when he war young. Despite the tadnees of losing his parcuts, Dave copcricnerd a pocat childbood as his grandparents own a large 530acre farm, Ralph is the fourth generation to own the farm, and it is well nun and profitable. Rajph's ancestors bought the lind and sarted the farm in the 18005 . Ralph and Rita cocecragod Dave with their own love of horses, especially borse \& carriage riding. There is an old carriage Ralph and Rita still usc, kopt is first class condition, with many repairs, which was buit in the 18505 . Four large hones ate kept by Ralph and Rita foe their carriage driving bobby. They hope to do msch more competitive carriage driving in their retirement. Dave owned several borses and ponies during his chillhoed. Every year thene were one or two foals bota and Dave had great fun belping to look affer them. He became an exgert boese nider and wee many junior competitions for borse jumping. as well as junior horke racing. However, he decided as a tecngeet thar be waeted so run his own besiness and subsequently went to Brock Univenity and got his BBA. The farm grows hary whech they food to their own hones. However, they sell the majonity of their hay to borbe-owners in Ontania. They gat a very good grice foe their hay crop as it in very high-quality, suitable for horses. They grow hay on 200 acres of the farm. asd coen en asveler 200 acres of the farm. Then they switch (rotate) crops the next year, hay to cern, and con to hay. This tetatioe of crogs keeps the qualiry of the soil in first class condision. The corn is sold to a canning factory in Nitgara Falis. The cors selling price is about 60 hi of the selling price of their hay. Ralph and Rats, both now in their 806 , rosently docided to move ato cee of the small houses on their farm. Thoy want Dave and Amy to have the big farmhouse becaese Anry is expecting roies in a few months time. Ralph and Rita are gradually handing over the day-to-day rusning of the fann, as well as cvertal cosenhip to Dwe and Amy. Siace getting alarned. Dave has been running the farm, while Amy works at a lecal Veteriantry practice. Dave cannot believe that it was only two years ago, at a friend's wodding in Toconto, that he met, and very soen after, married Amy, a recently gealified velerinarian (of boch small and large aninab L Dave and Amy, both in their carly; 20%. bookod a trip to Kentucky right after their wedding. They chose to viat Kenfocky becatke of the beautiful hooxs that their own business, It would be a very simitur business to what they'd scen at Hermitage Farm Heuse', where they'd stayed while in Kentucky. Hermitage Fam House is a hotel, with great accommodation and high-quality meals. The best part of their vacation had been viewing the horses and studying how Hermitage Farm operates. Amy was amazed by the he tech post-operative tecuperation center that catered to thoroughbred horses that had undergone sargery. She intagined a similar set-up in Ningana, where she could add an operating room or two and make it a one-stop-shop for injured animals. When she discussed this with Dave, he suggested she set-up her surgery on the farrn. "We've lots of great buildings already it place and the QLW is close, so transport links are first class. Both Dave and Amy were interested in how the Hermitage Farm provided the boarding for thoroughbred horses, also the breeding of thotoughbreds. Some of these horses would go on to win the Kentucky Derby. These hones were amoeg the best in the world Dave and Amy noted the advertisement about Hermitage Farm, saying they provide world-elass boarding facilities for mares, foals, and yearfinges.' The Hermitage Farm (HF) apparently has an outstanding reputation for breeding horses that they owned themselves; or the horses that whe owned by others that boarded (and very capably cared for) at the HF, Dave and Arry were excised with the idea of brecting high quality racchorses. However, realistically, this was a sport for the very nich! The breeding stock would be very expensive to start with. for example, they knew that a thoroughbred horse in the US could cost around $70,000++ USS. Thoroughbreds in Canada were priced around $85,000. $100,000++ Cda.S. However, the foals/ycarlings would be worth a lot of money, so it was necessary to start out with very high quality, very expensive horses. An expert trainer is required for working with theroughtred horses. With this eame the expence of topquality stable workers (grooms), and a stable manager. Perhaps Dave could take on one or more of these roles, they sondered. However, training a thoroughbred compared to a regular horse, wis a different level altogether, It probably required someone who was older and more experienood, carned a high salary, as well as a share in the profit from the sale of the thoroughbred yearlings. In addition to that, if you have thoroughbreds on your property, yoa are a target for horse thicves. It is a very competitive world - berse racing - and the type of security that would be required would need to be first class. This was the case, anyway, if you were going to be boarding regular borses for others. The insurance company would demand strong security measures. Despite this, Dave and Amy thought they should explore every possibility! "Oops" said Amy, "Iet's not forget we'll need a licensed horse trainer(s) for the yearlings as well as for the older borses!" "That's just the start for the list of who we'll need," said Dave, ... "Grooms eler"' Dave was particularly interesed in the camiage driving at the Hernitage Farm in Kentucky. His Grandparents love carriage driving and as a young boy he'd had a pony and trap to rua around the farm (nee last photo on page 8). Part of the farme included many areas of trees and busb. There were trails across the farm, some amongst the trees, and others in the open. The farm had a few hilly parts, some streams, a river and like efc. This wis the perfect type of land to do carriage driving. Dave wondered if this mighs be the best way to begin their breiness. He thought perhaps they should postpone their entry into thoroughbred horie breeding, until they had buit a clientele with more assured tevenue generating activities. He thought the ideal clients would be cooples whose family had left home, the empty neat" couples. Pcople who had disposable income and were looking for a new hobby. He also knew there were many affluent retirees who had moved down to Niagara from the Toronto Oakville area. They were searching foe a better quality of life. They would also be looking for making friends in the local community. Golf and tennis clubs were great for this, however people like something new and also competitive. There is an Ontario Association for carriage driving. Prince Phalip. (now deceased), was often in the news about his love of carriage driving. It often showed him encouraging his young Gitinddaughter to participate in this sport. This type of publicity had attracted people to the sport. Dave hoped to attract affluetit retirces as well as people of any age. The carriage driving at Hermitage Farm comprised competitive harness bone driviay. Dresage (complex maneuver). Masathon and Obstacle Driving. See Oatario Carriage Driving Asrociatico.4 Eurtherinformation RALMH AND RITA CONSIDER THE FARM TO BE. THEIRS BUT ALSO TO BELONG TO DAVE AND UIS WIFE. DAVE AND IIS WIFE WILL. INIERIT THE FARM WUEN RAL.II AND RITA DIE. In 2020 Eqoestrian Canada (EC) introduced a national coach licensing system: Licensed Coach, "With extensive experience and verified expertise. formal certifieation education, or valadated practical experience." Dave HAS THIS At the time of his parent's death. Dave inherited their assets (house, savings, vehicles) and life insurance moncy. House and vehicles were sold. All was then invested in hes name, and it is currently valued at $4.5 million. He has not spert any of this. Ralph has paid Dave an allowance to live on, for his work on the farm. Amy's parents are both veterinarians working at the Umivenity of Guelph. Hones (and ponies) cat grass, hay, oakx commercially mixed and balanced grain concentrate ete. They might require vitamins \& minerals. Drink 510 gallons of water a day. They like oom but can choke eating it. Hay - Combining grass with eg. Alfilfa or clover, adds nittogen to the soil, which in tum helps the grass grow better. Crop rotation hay one-year, sweet com next, improves soil quality. Seed, fertilizer, and insecticidelpesticide required for growing erops. Ralph \& Riti own the equipmentmachinery (all relatively new and in excellent condition) required for harvesting hay, sweet com, other crops efe. The farm has 200 acres growing hay, and 200 acres growing sweet com (switch crops yearly). Yearly sales of their top-quality hay, after expenses are paid (e.g. seeds, fertilizer, perticide ete.) is a net income of $1.8 milion. They keep some hay for the borses on the furm (Dave worked out thut ane adult horse eats about 5185 worth of their top quality, hay per month. (Eats grass in good weather). The income trom growing sweet com (afler expemes ate paid, weeds, fertilizer, pesticide ete.) is 51.4 million. Corn prices fluctuate greatly. In 2022 the prices are very hight and predicted to be higher in 2023. - The reat of the farmland is used for growing vegetables, wot frut (c.g. strawberrics, raspberries, blueberries, grapes). orchand fields for apples, peaches, apricots. cherries, Ralph and Rita make an excellent red and whate wine for personal use, from grapes grown on the farm. There are fields for carrots, potatoes, broccoli efc. Some of the crops are for family and employee consumption. Most are sold coenmercially, of at the local market or roadside stand beside the ferm. Planting, maintenance, seeding and harveiting the crops, and orchard cle. labour cost is high. Uses full-time and temponary workers. The fam has 4 fall-time firm workes (all married, with teenage cluidren) who are provided high quality free accommodation, apartment units, fully-furnished, 3 bedroom, bathrocm, kitchen, sitting room, recently modemined. Seasonal workens, in summer moaths live free, in a large boalding with single bedrooms, bathrooms, kitchen sitting area. The accomodations are kept in very clean condition, painted, and repaired regularly. All workers are allowed to use famp produce for their own use but are not allowed to sell it foe profit. The income from the fruit and vegetables, grown on the farm (approx. $480,000), pays the salanies of the four full-time farm workers, their wives. and iecnage children, who ulso work on the farm, at buisy times, temporary workers wages, Dave's allowance, and other general farm expenses. - The farm manager yearly salary is $50,010, and his wife cams $15,000 (she cooks and cleans for the Ralph and) Reta). They live in free occommodation provided in a small altractive boule on the farm. The land is very high-quality wol with next to no stones. There is good rainfall and no floodiag. The climate is a perfect halance of moisture and good growing seasons, to allow at least rwo urops per year. - There ate a few cows on the farm, kept for milk for use by those on the farm, chackens, ducks, dogs, cte. - The townicity taxer on the property would be recalculated if part of the farm becanes a cominerefial venture. Most of. the land would remain at the low tux rate as it grows crop. The buildings for the existing stablos cto, would be re- and teenage children, who also work on the farm, at busy times, temporary workers wages, Dave's allowance, and other general farm expenses. The farm manager yearly salary is $50.000, and his wife eams $15,000 (she cooks and cleans for the Ralph and Rita). They live in free accommodstion provided in a small attractive house on the farm. The land is very high-quality woil with next to no stones. There is good rainfall and no flooding. The climate is a perfect balance of moisture and good growing seasons, to allow at least two crops per year. There are a few cows on the famm, kept for milk for use by those on the farm, chickens, ducks, dogs, cte. The town/city taves on the property would be recalculated if part of the farm became a commercial venture. Most of the land would remain at the low tax rate as it grows crops. The beildings for the existing stables clc. would be reassessed as part of the commercial use. (Taxes are low on farmland, higher on commercial uses.) Current taxes are $50.000 per year. If a commercial eperation for part of the farm, them a guess would be $80.000 to $100,000 total property taxes, depending on how many new beildings are built and existing buildings used for the business. A regular (not thoroughbred) good horse in Cansde costs around $1,500 to $2,000, depending on age, strength, physical attributes, bealeh record, ability, temperament, visual appearance cte, $1,500 would buy a good horse and $750 would buy a good pony. Ponies would be best for young childrea's riding leswons. From 8-10 yeans up (depending on height and ability) children would require a hoss. Sometimes bones are casicr to control than a pony. The new equipment required initially, would iscluse a big stardy truckvehicle to pull a horse box, often a dual bone box for two hones OTHER INCOMENXPENDITURES, MAKE YOUR BEST GUESS FOR ESTIMATED COST/ PRICE. "Ontario Rules re Employment Standards: The minimum bourly wage rate in Ontario is 515.50 as of 2022 . If you work for boanting stalles or horse beeeding stables, there are special rules and exemptions. The employee is not entitled to: minimum wage, daily and weekly limits on hours of work, daily rest periods, time off between shifts, weeklybi-weckly rest periods, cating periods, thrse-bous rale, overtime pay, public holidays or pablic holiday pay, vacation with pary." Salaries for grooms are generally low as the job attracts people who simply want to work with borses because they love being around horses. They basically tive with the horses, often sleeping in a small room in the stables, and are usually young people. Tbey can eam yearly aalarics in the $15,000 to $20,000 range as accommodition and food is incladed. Tupes of Harse Riding Lowans \$. Trail niding lessons: Very casy to learn at any age. Caceal and popular. Faglish riding lessons c.g. learning to jump, or dreschec. Popular. Requites years of training. Western ridins lessons: rase, rope catle etc. Much less common in Ontario. Example Pricos for I esseas and Giear Wecklyibi-weckly rest periods, cating neriode, threcehour rule, overtime pay, publie holidays or peblic holiday pay, vacation with pay. "Salaries for grooms are gencrally low as the job attracts poople who simply want to work with horses because they love being around horses. They basically live with the horses, often sleeping in a small room in the stablek, and are usually young people. They can earn yearly salaries in the $15,000 to $20,000 range as accommodation and food is included. Tynes of Horsc Riding 1 estens Trail riding lessons: Very casy to learn at any age. Casual and popular. Einglish riding lessons eg. leaming to jump, or dressage. Popular. Requires years of training: $ Westem riding leswons: race, rope cattle ete. Moch less common in Ontario. Example Prices for I cssens and Gear Carriage Driving lessons $100 to Si 50 per one hour Iesson; 24day cducation session including two lessons \$275. Riding Lessons Prices depend on thd ('ngth of time eg. 30 mins (best for beginners). 45 mins or one hour. The number of lessens necessary varies but to become an expert competitive rider, it takes hundreds of hours \& years. Several months of lessons to master walk and trot. Then several mose moeths learn to canter. If you are an adult - you need to be relatively fit. You need a lot of strength, and it is hike a workout, If a child with a pony, it is easier and quicker, as children learn faster. These prices are all for One Hour. Private lessoni (one person) cost 545 - 5100 ; Semi-private (for 2-3 people) $45 - $80 each; Groep lessens $30 - $70 each; 30 minute lesson $30 - $60 private - twally for a child. Clothing - The essential is a belmet. (Requited) You necd good footwear (usually riding boots), Big variation in price e.g helmet prices from $100 to $1,000. Riding booes $100 to $1,000+. Saddles from $700 - 51,500 foe quality, long lasting: Sasale covers, Rcins, harmens, bit cte. Vet billis are one of the bigeest expenies of a hotie farm. What ean you charge for boardiag a horse? Bounding a borse: $300 - per month but can be as high as $1000, depends on the location, prestige of the stable, and the variety of services that are included. Famer expense: Essential to shoe your bones - 550 cach shoe. You need to re-shoe when borse's feet grow, shoe is damaged or wom down. Need to check shoes offen to remove grit cte. Soddle, hamess, reins, bit (goes in mouth), girth, stimups, ste. required for hotse riding - estimate 5800 for this per borse or pony. For carriage hories - cutimate 5900+ per borse for barness, halier, bits, breastplate (for example a 5 good quality breastplate cost 5400+ ). There is already a foll set of this, for each of the horses, \& ponies alteady on the farm. Ralph has bought the very best quality for the horses and ponies, as lasts longer. Carnages come in lots of sizes and styles. Fot a two or four horse carriage, prices would start at $5,000 to 56,500 for a fwo person, metal, no fnills veruion. One of the full-time famn employees is a licensed mechanic and he takes care of servicing the machinery, and repairs. One of the other full-time farm cmployees is a licensed electrician and looks affer any clectrical issnes. One of the fill-time farm employees is a licensed plumber and looks after the two wells on the property which they ue for Watering the crops, when no rain. They also use well water. which is of very high quality for the animals. So no shortage of water. The fourth full-time farm employee is a qualificd carpenter. He takes care of repairs, fences and woodwork on the farm. The farm workers alio work on the farm, as necessary. Also, one of the full-time employees wives Linda, has the 2020 Equestrian Canada (EC) certification as a riding coach. She currently looks after the 9 horsek, 3 yearlager and 4 ponies on the farm. She's been teaching anyone on the farm who wants to leam to ride (for free). Which is nwost of the cmployees, their wives and the six children (all teenagers) of the farm employees, who live on the farm with their family in the farm worker apartments. She is paid 51,500 a month for looking after the horses. The following Horses \& Ponies plus TackGear for each animal AI RRADY OWVAD A VD ON THE FARM. - Four large, strong bones for Ralph and Rita's Camsege Driving. (+2 carriges - one old, one new) - Three thoroughbreds (two fernale - mares; ene male - stallion) bought to breed thoroughbreds, a hobby Ralph started four years ago. He prid approx. $90.000 for exch horwo and has carefully trained and looked after them. Only Dave. Ralpt., Amy and Landa, ride the adult thoroughbreds. - The offspring from the thorooghbeds so far, are four yeatings. Ralph says "they are beauties ... they'il be worth a lot of money, if they don't get ill or becak a legs". Ralph is training the older two and will decide soon if he will keep them for broeding sock er sell them for a high price. With two colts and two fillies it would be a good start for bereeding thoroughtreds, ays Ralph. In fact, Ralph is very enthasiastic about helping. Dave and Amy if they want to start sericaly gettieg into the besiness of rearing thoroughbreds. He loves beautifol, fast bories. - Two excellent hornes (not thoroughtreds) thece years of age, well trained and good temperament. (One) female called a filly as under 4 years of age. Ose male called a colt as under 4 years of age). All the boties are good for general riding and don't get epert with strangen. The thoroughbreds, adult and young. are not for gencral use. They are very carefully looked after as their value is very high. A good yearlieg thoroughbred might well for 560,000 to $40,000 or higher, depending on the quatity and potential for hone racing: - Four ponies of various ages. Intelligent and unlike some ponies, are hard working and reliable. They are stronger thin small horses. Ponies are great for polling smull carrisges. Also good for young chaikirin learning to nide. Their big boeses, short legs and thick coats make them particularly good in the snow. Examples of Horschack Riding in Niagara Reniegula hitps:iliwww,hasvicurgertidanceatrecomb) B. Product/Service Feasibility Analysis Cencept Testime - Do not answer this - DEL BTE Marketability Target Customer Profile Product:Service Usefulness First Mover Advantages C. Industry/Market Feasibility Analysis Industry Attractiveness Market Timeliness Identification of a Niche Market D. Organizational Feasibility Analysis Maragement Prowess Future Human Resource Needs Resource Sufficiency (non-financial) E. Financial Feasibility Analysis Capital Requiremsents Overall Attractaveness of the Invertment Dave and Amy Walker are passionate about horses. They are meeting with Yot, a new venture Business Consultant, in the Coodman School of Besincss, to ask yee te write a Feavibility Stady for their venture. Brock effers this service free of charge to potential Entreprencurs in Niagara. Coodman does not charge for this service at it is considered great training for top Entreprencurship sudents. The stedents appreciate the epportunity to enhance their Resume and learn through helping others. Aitheugh Dave and Amy provide you with extensive information (see below), you will need to fill vome of the gaps. Add any ideas yee thiak appropriate etc. Dave and Aray wast to start a business, breoding thotoughbred hoeses to sell and some to keep. They also think they could be successful breeding and training thoroughliesds which are owned by clicats but entrusted to beard with Dave and Amy to breed and train the offypring (fools). In addition, Dave and Amy think there would also be demand for just the training of thorougbbred foalsyearlinge horses for clients. Additionally, chictes could beord regular (non thoroughbred) horses and ponies with them, especially during the winter months when it is very cold in Cacada. Dave and Amy would care for them and train the bones. This would prohably nocessitate an indoer trainitg arcas. They think they conld casily convert one of their existing large farm building for this purpose. They'd atwo like to nan a bone-riding robool for young people, as well as for adults. In addition, they wonder if they can ahe start bonc asd carriage training councs for aduits, and pony and carriage courses for yoang pcople. Dave says to you "astually we're keon to efficr anything to do with hories ( & ponies). The location of my Grandparents fam is ideal - weuth of Nugara Falls, close to the QEW, and close to Lake Erie. It shoeld attract US clients as well as Canadian." Dave grew up in Niagara. He lives with his Grandparens (Ralph ass Rita) as his parents werte killed in a cat accident when he war young. Despite the tadnees of losing his parcuts, Dave copcricnerd a pocat childbood as his grandparents own a large 530acre farm, Ralph is the fourth generation to own the farm, and it is well nun and profitable. Rajph's ancestors bought the lind and sarted the farm in the 18005 . Ralph and Rita cocecragod Dave with their own love of horses, especially borse \& carriage riding. There is an old carriage Ralph and Rita still usc, kopt is first class condition, with many repairs, which was buit in the 18505 . Four large hones ate kept by Ralph and Rita foe their carriage driving bobby. They hope to do msch more competitive carriage driving in their retirement. Dave owned several borses and ponies during his chillhoed. Every year thene were one or two foals bota and Dave had great fun belping to look affer them. He became an exgert boese nider and wee many junior competitions for borse jumping. as well as junior horke racing. However, he decided as a tecngeet thar be waeted so run his own besiness and subsequently went to Brock Univenity and got his BBA. The farm grows hary whech they food to their own hones. However, they sell the majonity of their hay to borbe-owners in Ontania. They gat a very good grice foe their hay crop as it in very high-quality, suitable for horses. They grow hay on 200 acres of the farm. asd coen en asveler 200 acres of the farm. Then they switch (rotate) crops the next year, hay to cern, and con to hay. This tetatioe of crogs keeps the qualiry of the soil in first class condision. The corn is sold to a canning factory in Nitgara Falis. The cors selling price is about 60 hi of the selling price of their hay. Ralph and Rats, both now in their 806 , rosently docided to move ato cee of the small houses on their farm. Thoy want Dave and Amy to have the big farmhouse becaese Anry is expecting roies in a few months time. Ralph and Rita are gradually handing over the day-to-day rusning of the fann, as well as cvertal cosenhip to Dwe and Amy. Siace getting alarned. Dave has been running the farm, while Amy works at a lecal Veteriantry practice. Dave cannot believe that it was only two years ago, at a friend's wodding in Toconto, that he met, and very soen after, married Amy, a recently gealified velerinarian (of boch small and large aninab L Dave and Amy, both in their carly; 20%. bookod a trip to Kentucky right after their wedding. They chose to viat Kenfocky becatke of the beautiful hooxs that their own business, It would be a very simitur business to what they'd scen at Hermitage Farm Heuse', where they'd stayed while in Kentucky. Hermitage Fam House is a hotel, with great accommodation and high-quality meals. The best part of their vacation had been viewing the horses and studying how Hermitage Farm operates. Amy was amazed by the he tech post-operative tecuperation center that catered to thoroughbred horses that had undergone sargery. She intagined a similar set-up in Ningana, where she could add an operating room or two and make it a one-stop-shop for injured animals. When she discussed this with Dave, he suggested she set-up her surgery on the farrn. "We've lots of great buildings already it place and the QLW is close, so transport links are first class. Both Dave and Amy were interested in how the Hermitage Farm provided the boarding for thoroughbred horses, also the breeding of thotoughbreds. Some of these horses would go on to win the Kentucky Derby. These hones were amoeg the best in the world Dave and Amy noted the advertisement about Hermitage Farm, saying they provide world-elass boarding facilities for mares, foals, and yearfinges.' The Hermitage Farm (HF) apparently has an outstanding reputation for breeding horses that they owned themselves; or the horses that whe owned by others that boarded (and very capably cared for) at the HF, Dave and Arry were excised with the idea of brecting high quality racchorses. However, realistically, this was a sport for the very nich! The breeding stock would be very expensive to start with. for example, they knew that a thoroughbred horse in the US could cost around $70,000++ USS. Thoroughbreds in Canada were priced around $85,000. $100,000++ Cda.S. However, the foals/ycarlings would be worth a lot of money, so it was necessary to start out with very high quality, very expensive horses. An expert trainer is required for working with theroughtred horses. With this eame the expence of topquality stable workers (grooms), and a stable manager. Perhaps Dave could take on one or more of these roles, they sondered. However, training a thoroughbred compared to a regular horse, wis a different level altogether, It probably required someone who was older and more experienood, carned a high salary, as well as a share in the profit from the sale of the thoroughbred yearlings. In addition to that, if you have thoroughbreds on your property, yoa are a target for horse thicves. It is a very competitive world - berse racing - and the type of security that would be required would need to be first class. This was the case, anyway, if you were going to be boarding regular borses for others. The insurance company would demand strong security measures. Despite this, Dave and Amy thought they should explore every possibility! "Oops" said Amy, "Iet's not forget we'll need a licensed horse trainer(s) for the yearlings as well as for the older borses!" "That's just the start for the list of who we'll need," said Dave, ... "Grooms eler"' Dave was particularly interesed in the camiage driving at the Hernitage Farm in Kentucky. His Grandparents love carriage driving and as a young boy he'd had a pony and trap to rua around the farm (nee last photo on page 8). Part of the farme included many areas of trees and busb. There were trails across the farm, some amongst the trees, and others in the open. The farm had a few hilly parts, some streams, a river and like efc. This wis the perfect type of land to do carriage driving. Dave wondered if this mighs be the best way to begin their breiness. He thought perhaps they should postpone their entry into thoroughbred horie breeding, until they had buit a clientele with more assured tevenue generating activities. He thought the ideal clients would be cooples whose family had left home, the empty neat" couples. Pcople who had disposable income and were looking for a new hobby. He also knew there were many affluent retirees who had moved down to Niagara from the Toronto Oakville area. They were searching foe a better quality of life. They would also be looking for making friends in the local community. Golf and tennis clubs were great for this, however people like something new and also competitive. There is an Ontario Association for carriage driving. Prince Phalip. (now deceased), was often in the news about his love of carriage driving. It often showed him encouraging his young Gitinddaughter to participate in this sport. This type of publicity had attracted people to the sport. Dave hoped to attract affluetit retirces as well as people of any age. The carriage driving at Hermitage Farm comprised competitive harness bone driviay. Dresage (complex maneuver). Masathon and Obstacle Driving. See Oatario Carriage Driving Asrociatico.4 Eurtherinformation RALMH AND RITA CONSIDER THE FARM TO BE. THEIRS BUT ALSO TO BELONG TO DAVE AND UIS WIFE. DAVE AND IIS WIFE WILL. INIERIT THE FARM WUEN RAL.II AND RITA DIE. In 2020 Eqoestrian Canada (EC) introduced a national coach licensing system: Licensed Coach, "With extensive experience and verified expertise. formal certifieation education, or valadated practical experience." Dave HAS THIS At the time of his parent's death. Dave inherited their assets (house, savings, vehicles) and life insurance moncy. House and vehicles were sold. All was then invested in hes name, and it is currently valued at $4.5 million. He has not spert any of this. Ralph has paid Dave an allowance to live on, for his work on the farm. Amy's parents are both veterinarians working at the Umivenity of Guelph. Hones (and ponies) cat grass, hay, oakx commercially mixed and balanced grain concentrate ete. They might require vitamins \& minerals. Drink 510 gallons of water a day. They like oom but can choke eating it. Hay - Combining grass with eg. Alfilfa or clover, adds nittogen to the soil, which in tum helps the grass grow better. Crop rotation hay one-year, sweet com next, improves soil quality. Seed, fertilizer, and insecticidelpesticide required for growing erops. Ralph \& Riti own the equipmentmachinery (all relatively new and in excellent condition) required for harvesting hay, sweet com, other crops efe. The farm has 200 acres growing hay, and 200 acres growing sweet com (switch crops yearly). Yearly sales of their top-quality hay, after expenses are paid (e.g. seeds, fertilizer, perticide ete.) is a net income of $1.8 milion. They keep some hay for the borses on the furm (Dave worked out thut ane adult horse eats about 5185 worth of their top quality, hay per month. (Eats grass in good weather). The income trom growing sweet com (afler expemes ate paid, weeds, fertilizer, pesticide ete.) is 51.4 million. Corn prices fluctuate greatly. In 2022 the prices are very hight and predicted to be higher in 2023. - The reat of the farmland is used for growing vegetables, wot frut (c.g. strawberrics, raspberries, blueberries, grapes). orchand fields for apples, peaches, apricots. cherries, Ralph and Rita make an excellent red and whate wine for personal use, from grapes grown on the farm. There are fields for carrots, potatoes, broccoli efc. Some of the crops are for family and employee consumption. Most are sold coenmercially, of at the local market or roadside stand beside the ferm. Planting, maintenance, seeding and harveiting the crops, and orchard cle. labour cost is high. Uses full-time and temponary workers. The fam has 4 fall-time firm workes (all married, with teenage cluidren) who are provided high quality free accommodation, apartment units, fully-furnished, 3 bedroom, bathrocm, kitchen, sitting room, recently modemined. Seasonal workens, in summer moaths live free, in a large boalding with single bedrooms, bathrooms, kitchen sitting area. The accomodations are kept in very clean condition, painted, and repaired regularly. All workers are allowed to use famp produce for their own use but are not allowed to sell it foe profit. The income from the fruit and vegetables, grown on the farm (approx. $480,000), pays the salanies of the four full-time farm workers, their wives. and iecnage children, who ulso work on the farm, at buisy times, temporary workers wages, Dave's allowance, and other general farm expenses. - The farm manager yearly salary is $50,010, and his wife cams $15,000 (she cooks and cleans for the Ralph and) Reta). They live in free occommodation provided in a small altractive boule on the farm. The land is very high-quality wol with next to no stones. There is good rainfall and no floodiag. The climate is a perfect halance of moisture and good growing seasons, to allow at least rwo urops per year. - There ate a few cows on the farm, kept for milk for use by those on the farm, chackens, ducks, dogs, cte. - The townicity taxer on the property would be recalculated if part of the farm becanes a cominerefial venture. Most of. the land would remain at the low tux rate as it grows crop. The buildings for the existing stablos cto, would be re- and teenage children, who also work on the farm, at busy times, temporary workers wages, Dave's allowance, and other general farm expenses. The farm manager yearly salary is $50.000, and his wife eams $15,000 (she cooks and cleans for the Ralph and Rita). They live in free accommodstion provided in a small attractive house on the farm. The land is very high-quality woil with next to no stones. There is good rainfall and no flooding. The climate is a perfect balance of moisture and good growing seasons, to allow at least two crops per year. There are a few cows on the famm, kept for milk for use by those on the farm, chickens, ducks, dogs, cte. The town/city taves on the property would be recalculated if part of the farm became a commercial venture. Most of the land would remain at the low tax rate as it grows crops. The beildings for the existing stables clc. would be reassessed as part of the commercial use. (Taxes are low on farmland, higher on commercial uses.) Current taxes are $50.000 per year. If a commercial eperation for part of the farm, them a guess would be $80.000 to $100,000 total property taxes, depending on how many new beildings are built and existing buildings used for the business. A regular (not thoroughbred) good horse in Cansde costs around $1,500 to $2,000, depending on age, strength, physical attributes, bealeh record, ability, temperament, visual appearance cte, $1,500 would buy a good horse and $750 would buy a good pony. Ponies would be best for young childrea's riding leswons. From 8-10 yeans up (depending on height and ability) children would require a hoss. Sometimes bones are casicr to control than a pony. The new equipment required initially, would iscluse a big stardy truckvehicle to pull a horse box, often a dual bone box for two hones OTHER INCOMENXPENDITURES, MAKE YOUR BEST GUESS FOR ESTIMATED COST/ PRICE. "Ontario Rules re Employment Standards: The minimum bourly wage rate in Ontario is 515.50 as of 2022 . If you work for boanting stalles or horse beeeding stables, there are special rules and exemptions. The employee is not entitled to: minimum wage, daily and weekly limits on hours of work, daily rest periods, time off between shifts, weeklybi-weckly rest periods, cating periods, thrse-bous rale, overtime pay, public holidays or pablic holiday pay, vacation with pary." Salaries for grooms are generally low as the job attracts people who simply want to work with borses because they love being around horses. They basically tive with the horses, often sleeping in a small room in the stables, and are usually young people. Tbey can eam yearly aalarics in the $15,000 to $20,000 range as accommodition and food is incladed. Tupes of Harse Riding Lowans \$. Trail niding lessons: Very casy to learn at any age. Caceal and popular. Faglish riding lessons c.g. learning to jump, or dreschec. Popular. Requites years of training. Western ridins lessons: rase, rope catle etc. Much less common in Ontario. Example Pricos for I esseas and Giear Wecklyibi-weckly rest periods, cating neriode, threcehour rule, overtime pay, publie holidays or peblic holiday pay, vacation with pay. "Salaries for grooms are gencrally low as the job attracts poople who simply want to work with horses because they love being around horses. They basically live with the horses, often sleeping in a small room in the stablek, and are usually young people. They can earn yearly salaries in the $15,000 to $20,000 range as accommodation and food is included. Tynes of Horsc Riding 1 estens Trail riding lessons: Very casy to learn at any age. Casual and popular. Einglish riding lessons eg. leaming to jump, or dressage. Popular. Requires years of training: $ Westem riding leswons: race, rope cattle ete. Moch less common in Ontario. Example Prices for I cssens and Gear Carriage Driving lessons $100 to Si 50 per one hour Iesson; 24day cducation session including two lessons \$275. Riding Lessons Prices depend on thd ('ngth of time eg. 30 mins (best for beginners). 45 mins or one hour. The number of lessens necessary varies but to become an expert competitive rider, it takes hundreds of hours \& years. Several months of lessons to master walk and trot. Then several mose moeths learn to canter. If you are an adult - you need to be relatively fit. You need a lot of strength, and it is hike a workout, If a child with a pony, it is easier and quicker, as children learn faster. These prices are all for One Hour. Private lessoni (one person) cost 545 - 5100 ; Semi-private (for 2-3 people) $45 - $80 each; Groep lessens $30 - $70 each; 30 minute lesson $30 - $60 private - twally for a child. Clothing - The essential is a belmet. (Requited) You necd good footwear (usually riding boots), Big variation in price e.g helmet prices from $100 to $1,000. Riding booes $100 to $1,000+. Saddles from $700 - 51,500 foe quality, long lasting: Sasale covers, Rcins, harmens, bit cte. Vet billis are one of the bigeest expenies of a hotie farm. What ean you charge for boardiag a horse? Bounding a borse: $300 - per month but can be as high as $1000, depends on the location, prestige of the stable, and the variety of services that are included. Famer expense: Essential to shoe your bones - 550 cach shoe. You need to re-shoe when borse's feet grow, shoe is damaged or wom down. Need to check shoes offen to remove grit cte. Soddle, hamess, reins, bit (goes in mouth), girth, stimups, ste. required for hotse riding - estimate 5800 for this per borse or pony. For carriage hories - cutimate 5900+ per borse for barness, halier, bits, breastplate (for example a 5 good quality breastplate cost 5400+ ). There is already a foll set of this, for each of the horses, \& ponies alteady on the farm. Ralph has bought the very best quality for the horses and ponies, as lasts longer. Carnages come in lots of sizes and styles. Fot a two or four horse carriage, prices would start at $5,000 to 56,500 for a fwo person, metal, no fnills veruion. One of the full-time famn employees is a licensed mechanic and he takes care of servicing the machinery, and repairs. One of the other full-time farm cmployees is a licensed electrician and looks affer any clectrical issnes. One of the fill-time farm employees is a licensed plumber and looks after the two wells on the property which they ue for Watering the crops, when no rain. They also use well water. which is of very high quality for the animals. So no shortage of water. The fourth full-time farm employee is a qualificd carpenter. He takes care of repairs, fences and woodwork on the farm. The farm workers alio work on the farm, as necessary. Also, one of the full-time employees wives Linda, has the 2020 Equestrian Canada (EC) certification as a riding coach. She currently looks after the 9 horsek, 3 yearlager and 4 ponies on the farm. She's been teaching anyone on the farm who wants to leam to ride (for free). Which is nwost of the cmployees, their wives and the six children (all teenagers) of the farm employees, who live on the farm with their family in the farm worker apartments. She is paid 51,500 a month for looking after the horses. The following Horses \& Ponies plus TackGear for each animal AI RRADY OWVAD A VD ON THE FARM. - Four large, strong bones for Ralph and Rita's Camsege Driving. (+2 carriges - one old, one new) - Three thoroughbreds (two fernale - mares; ene male - stallion) bought to breed thoroughbreds, a hobby Ralph started four years ago. He prid approx. $90.000 for exch horwo and has carefully trained and looked after them. Only Dave. Ralpt., Amy and Landa, ride the adult thoroughbreds. - The offspring from the thorooghbeds so far, are four yeatings. Ralph says "they are beauties ... they'il be worth a lot of money, if they don't get ill or becak a legs". Ralph is training the older two and will decide soon if he will keep them for broeding sock er sell them for a high price. With two colts and two fillies it would be a good start for bereeding thoroughtreds, ays Ralph. In fact, Ralph is very enthasiastic about helping. Dave and Amy if they want to start sericaly gettieg into the besiness of rearing thoroughbreds. He loves beautifol, fast bories. - Two excellent hornes (not thoroughtreds) thece years of age, well trained and good temperament. (One) female called a filly as under 4 years of age. Ose male called a colt as under 4 years of age). All the boties are good for general riding and don't get epert with strangen. The thoroughbreds, adult and young. are not for gencral use. They are very carefully looked after as their value is very high. A good yearlieg thoroughbred might well for 560,000 to $40,000 or higher, depending on the quatity and potential for hone racing: - Four ponies of various ages. Intelligent and unlike some ponies, are hard working and reliable. They are stronger thin small horses. Ponies are great for polling smull carrisges. Also good for young chaikirin learning to nide. Their big boeses, short legs and thick coats make them particularly good in the snow. Examples of Horschack Riding in Niagara Reniegula hitps:iliwww,hasvicurgertidanceatrecomb) B. Product/Service Feasibility Analysis Cencept Testime - Do not answer this - DEL BTE Marketability Target Customer Profile Product:Service Usefulness First Mover Advantages C. Industry/Market Feasibility Analysis Industry Attractiveness Market Timeliness Identification of a Niche Market D. Organizational Feasibility Analysis Maragement Prowess Future Human Resource Needs Resource Sufficiency (non-financial) E. Financial Feasibility Analysis Capital Requiremsents Overall Attractaveness of the Invertment