1. AREION CUSTOM EQUINE EQUIPMENT
Areion Custom Equine Equipment
Jump Rental Business Plan
Brittany Johnson
November 21, 2013

2. Entrepreneurship
Table of Contents
Page 1:Executive Summary
Page 2:Business Description
Page 3:Plan of Operations
Page 4:Costs, Activities and Industry Description
Page 5:Industry Description Continued and Competitor Analysis
Page 6:Competitor Analysis Continued
Page 7:Strengths/Weaknesses and Competitive Advantage
Page 8:Customer Segments and CustomerDetails
Page 9:Promotion
Page 10:Marketing Budget
Page 11:BreakevenAnalysis and Further Action
Page 12:Financials:Costs
Page 13:Financials:Revenue and Breakeven
Page 14:References
Page 15:References
i.

3. Entrepreneurship
Executive Summary:
This business plan is specifically designed to inform employees and investors in the
future plans of Areion Custom Equine Equipment (ACEE). After experiencing success in
crafting high-quality tack trunks, medicine boxes, saddle stands and other barn décor, ACEE has
recently seen a need to expand in to building horse jumps to rent. Many facilities do not have the
ability to purchase, store and maintain high quality horse jump equipment. In response to this
problem ACEE has determined that a need exists for a jump rental service that provides the most
modern and well crafted jump equipment to facilities and horse show management. The storage
and maintenance of jumps will be the priority of ACEE and take the burden of storage off of the
facilities that host these events.
By allowing renters to view a wide variety of jumps and equipment it enables them to
build consistently unique and individual courses that showcase new and beautiful jumps at each
event. Purchasing and storing a full course (many facilities need multiple different types of
courses) is expensive and requires a significant amount of storage and maintenance to keep the
jumps in the appropriate condition. Providing rental is an attractive solution to the problems
surrounding jump purchase. Over the next two years we will expand our company to a full jump
and arena equipment rental service that provides standards, poles, gates, walls, and filler for a
wide variety of equine jumping events. By implementing these changes; we will not only offer
new products to new consumers, but also increase the number of people that see our work all
around the equine world.
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4. Entrepreneurship
Business Description
MissionStatement:
Areion Custom Equine Equipment’s mission is to provide the highest quality equine
equipment and level of satisfaction to both our customers and equestrians utilizing our
equipment.
Value Proposition:
We strive to provide the highest quality equine equipment without the high cost and
hassle of storage, maintenance and delivery.
Description:
Areion Tack Trunks currently designs and constructs quality tack trunks, medicine
cabinets, saddle stands, and other barn décor. Currently this company is on a very small scale
and has experienced success amongst individuals that surround the Parker and Elizabeth,
Colorado area. My love of the horse and particularly Hunter/Jumper competition has lead me to
work with a number of facilities in Colorado including the Colorado Horse Park and National
Western Stock Show as well as a Rodeo Austin located in Austin, Texas.
Areion Custom Equine Equipment will be the next phase of this company and will
continue to encompass Areion Tack Trunks. This company will remain located in Parker,
Colorado because we feel that it is a good location between a large number of Colorado’s equine
facilities including National Western Complex in Denver, The Ranch Events Complex in
Loveland, Norris-Penrose Event Center in Colorado Springs, as well as many smaller farms that
host horse shows requiring jumps throughout the year.
I am aware of one other company that rents jumps in Colorado and they do not advertise
that they do in fact offer rentals. I feel that there is a demand for this service due to the fact that
there is a limited number of companies that provide rentals and jumps and the equipment that go
along with it them are expensive to purchase, maintain, and store. Through renting the jumps it
allows facilities and management companies to not have to purchase entire courses and then have
the responsibility of maintaining and finding room to store the equipment. Many of the larger
facilities have a limited amount of space and offer such a wide variety of events many of them do
not own their own sets of jumps and require the shows to find their own supplier or provide the
jumps themselves.
Areion’s services will include the ability via website for individuals to view jumps and
equipment that are available for the dates of the event. From there they will reserve the
equipment, select a delivery/removal date and time and the equipment will be delivered directly
to the facility of their choice. Areion will be responsible for the maintenance, storage and
transport of all of the equipment relieving a large stress and burden for the customer while
ensuring the jumps are well maintained thus increasing the usable life of the equipment.
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5. Entrepreneurship
Plan of Operations
Resources
Standards/Gates/Walls
Carpentry
1. Hand cutting- We have the talent and ability to cut each jump by hand using saws and
equipment we already own. However, for certain jumps and equipment it could become
time consuming and costly in the form of labor and time spent per piece of equipment to
construct.
2. Laser cutting- By utilizing Denver Wood Works we can laser cut wood at $120 an hour
the price per piece of equipment will vary based on how intricate the design is because
the more intricate the piece is it will take longer to cut. This could be a useful option
because it can reduce the cost of labor when it comes to cutting each piece of wood.
3. Ultimately, I feel that using both hand cutting and laser cutting simultaneously benefit
this process greatly. Some jumps are easily cut by hand because require less complex
cuts while laser cutting will be useful on more complex and intricate designs. This will
allocate money and labor in a more effective way, while ensuring the best use of all of
our resources.
Assembly
 Standards, gates and walls will all be assembled prior to painting in house. To ensure
the highest quality of craftsmanship, by assembling each piece we fully understand
the function of each piece and can ensure that each piece is safe for use in the ring.
Paint
 All equipment will be sanded as needed, painted and sealed in house as well. This
allows for us to ensure that all of the jumps are finished exactly how we want them to
be from the design to the color and varieties of colors.
Poles
 I will order precut 12’ poles that are 3 ¼” in diameter for $17 a pole from Pacific
West Lumber. We will paint the poles in solids, naturals (burn with torch), and
striped as needed to build hunter and jumper courses.
Hardware
 Potter Steel in Denver, Colorado will provide key-hole tracks and safety jump cups to
provide the highest level of safety to all of the users.
Partners:
 Potter Steel: Denver, Colorado
 Pacific West Lumber
 Home Depot
 Denver Wood Works
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6. Entrepreneurship
Costto Build Equipment:
Activities:
Rental Service
Areion Custom Equine Equipment will primarily utilize a website that allows users to
view available jumps and organize the equipment they need for the dates of their events. I think
that it is important to offer high quality customer service and it is necessary to have good
interaction with customers.
Payment of 10% of the total rental price will be required to reserve the equipment and
will be non-refundable, and the rest will be paid at the time of delivery. Upon delivery a contract
will be signed and if anything (other than direct horse related accidents) causes destruction of
any of the equipment the renter will be required to pay for the cost or repair and/or replacement.
Industry Description:
 Economy- see Diagram 1
o According to the American Horse Council there are currently 9.2 million horses
in the U.S., with about 4.6 million people involved in the horse industry as
owners, employees, and care providers with millions of event spectators. After
taking into consideration the multiplier effect the horse industry has an impact of
$102 billion on the U.S. economy and provides 460,000 full time jobs. Of the 9.2
million horses in the U.S. 2,718,954 horses are involved in horse showing. Horse
Showing produces $10.8 billion to the total value of goods and services produced
by the horse industry. ("National Economic Impact of the U.S. Horse Industry")
Hunter Ring Rental Jumper Ring Rental
20 single colored rails 40 2-3 colored striped rails
13 pairs of winged standards w/cups 18 pairs of winged standards w/ cups
10 gates 12 gates/planks
5 walls 7 fillers
11 pairs of flowerboxes
$300.00 per day + transportation $415.00 per day + transportation
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7. Entrepreneurship
Diagram 1- United States Horse Economy
 In 2013, within Colorado according to the Colorado Hunter Jumper Association
(chja.org) 61 horse shows licensed by the Colorado Hunter Jumper Association. Horse
shows such as these are competitions in which jumps would be needed, and locations that
will attract companies interested in advertising to spectators, horse owners and riders
 According to a poll on HGS.Horse.Forum people spend anywhere from less than $50 to
over $5,000 to show their horses at one horse show. The largest number of individuals
(33.93%) paying up to $300 to show their horse per show.
Competitor Analysis-see Diagram 2
Diagram 2- Jump Companies currently renting to Colorado Horse Shows
Jump Company Jumps By Fuzzy The Wild Ranch Jump
Co. (Colorado Horse Park)
Location Franklin, Tennessee Parker, Colorado
Offer Jump Rental? Yes Yes
Currently Rent to in CO National Western Stock Show CHJA Medal Finals, any
show at CHP
*It was difficult to get prices for how much these companies currently rent for, it depends
on who they are renting to. Obviously costs to ship jumps to Colorado would be high.
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8. Entrepreneurship
 Jumps by Fuzzy, Inc.- Franklin, Tennessee
o William “Fuzzy” Mayo, has been building and renting jumps and portable horse
stalls for over 40 years and has been very successful in his rental to facilities such
as the Quarter Horse Congress, Rolex and the World Equestrian Games in 2010 at
the Kentucky Horse Park. Jumps by Fuzzy also provide the jumps to National
Western Stock Show during the Hunter/Jumper event. I feel that Jumps by Fuzzy
provides competition, however they do not have a website (only a Facebook page
last updated in 2011); this makes it hard for people to find more information about
them and connect to new audiences. Also, being located in Tennessee has some
restraints on their ability to consistently rent to facilities in Colorado; this also
adds to the cost that the renters have to pay. I feel that if a rental company was
provided in Colorado that the facilities currently using Jumps by Fuzzy might
consider using a new company for convenience year round and a lower cost on
transport.
 The Wild Ranch Jump Company- Parker, Colorado
o The Wild Ranch Jump Company, housed by the Colorado Horse Park and ran by
General Manager Brian Curry provides jumps to all of the horse shows at the
Colorado Horse Park as well as the Colorado Hunter Jumper Association Medal
Finals. By being located and financially supported by the Colorado Horse Park
this company provides healthy competition. It was difficult to find any
information on this company they have one page with contact information on the
Colorado Horse Park website.
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9. Entrepreneurship
Strengths and Challenges of Areion Custom Equine Equipment- see Diagram 3
Diagram 3- Strengths vs. Challenges
Strengths Challenges
Utilizing high quality, durable materials to
create equipment that will last allowing it to be
used for longer periods of time.
Funding to initially build equipment needed to
rent.
Experienced designer and builder that has
produced exceptional jumps and equipment in
the past.
Getting our information and service out there
so that people know we exist.
Connections- networking with other facilities
and shows throughout Colorado is invaluable
to us as a start-up
Connecting with customers that currently use
other sources for their equipment rental needs
Technology- using technology to help ease the
building process as well as utilizing social
media and an easily navigated website to help
customers.
Customer Service- both the builder and
manager come from a strong horse show
background we understand the needs of the
client.
Competitive Advantage
Areion Custom Equine Equipment’s competitive advantage is to provide simplicity and
ease of mind to our customers. By providing online, over the phone, in person service we are
easily able to help our customers in the way that best suits them. Utilizing social media and in
the internet is invaluable to us, it is an easy effective way to inform many different people about
our company and the services we offer. To make ACEE successful in the long run it is
imperative to continue to evolve and always make it easy for the customer to get the information
and services they need in a timely and comfortable manner. Our collective background in the
horse show business is the key to our success, by understanding the customer and the needs of a
horse show in general we are able to build and provide the best equipment and service to every
individual customer.
Beginning with building highly quality equipment not only adds value to the product we
provide to the customer, but allows our equipment to last and be used many times and keep
repair costs to a minimum. Centering the experience on what the customer wants and guiding
them to the appropriate equipment enables the client to feel that they have been helped and are
getting the exact equipment they needed in a timely manner.
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10. Entrepreneurship
Customer Segments:
Target Market:
Areion Custom Equine Equipment is targeting large equine facilities in Colorado that
host at least one horse show that utilizes jumps. By targeting large facilities it is possible to gain
more than one client based on the fact that these facilities rent to many different horse shows
throughout the year.
The second target market is horse shows that are affiliated with the Colorado Hunter
Jumper Association. Many of the horse shows are hosted at smaller farms and facilities that may
not have show quality jumps at their disposal, and some that host them at other facilities still
have to provide the jumps for the shows themselves (facilities that do not have jumps to rent).
Product:
Hunter and Jumper Courses
Courses come with poles, standards, safety jump cups, gates and walls. All components
of the course can be rented as a whole (customer specifies they need X number of oxers and X
number of verticals) or as individual pieces (they only need to rent jump cups or a certain
number of poles).
Equipment is delivered to the facility of the customers choosing at the specified time and
will be picked-up when the customer specifies.
Customer Detail:
Relationship
We will utilize a fully interactive website that allows clients to view jumps based on
availability for their particular event. After selecting their chosen equipment they reserve the
equipment by paying 50% of the total cost, and specify the date, time and location that they want
the jumps to be delivered and removed. The remaining 50% of the rental cost is paid upon
delivery of the equipment. We will have dedicated staff that can be reached by phone to help
customers with questions and problems.
Communication
 Interactive website
 Phone
 In-person
 Email
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11. Entrepreneurship
Promotion
Areion Custom Equine Equipment will primarily utilize a website to promote and sell our
services to new and existing clientele. Facebook will continue to be a way in which we involve
our customers with the changes and news with ACEE. In order to reach the customers involved
with the Colorado Hunter Jumper Association, I would purchase ad space on their website as
well as attend some of the events particularly the large ones such as medal finals and the year-
end banquet and possibly sponsor some prizes and/or classes. By providing services to these
exhibitors and individuals hosting the shows it will get them thinking about the new jump
company and might inspire some of them to look at what we have to offer.
To reach the larger facilities that due primarily rental I feel that it might be necessary to
sit down with managers and staff to give them information about the services we provide and
how it can help them and the shows that come to their facility. Sending pamphlets with pictures
and more information can be a good way to follow up and peak their interest to look at the
website and follow our social media pages.
Many people that have worked with Areion Tack Trunks in the past appreciate the fact
that we are people that they know personally and trust. Continuing to have a friendly appeal and
word of mouth will be imperative in promoting the new jump rental business. Offering a
promotion the first year we are open that encourages people to initially rent with us and then rent
with us again in the future might help spur a start to rentals. By offering a promotion that allows
renters to be entered to win a free 2 day rental for the following season by renting once with us
might encourage people to try something new and keep them coming back.
Goals:
1. Inform current and prospective customers of jump rental.
2. Inform large equine related facilities of jump rental services, to allow them to utilize the
service themselves and inform horse shows that rent their facility about the convenience of
the new service.
3. Create a relationship with a large equine facility to encourage everyone using jumps to rent
through Areion Custom Equine Equipment.
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12. Entrepreneurship
Strategies:
 Develop website show casing all of the different jumps that we have available to rent.
Allow individuals to check equipment availability and order equipment online to be
delivered.
 Facebook page update, discussing the addition of jump rentals along with a link to the
new web page.
 Create and distribute a short informational pamphlet to horse shows and local equine
facilities. This pamphlet will contain pictures of jumps, basic pricing information, and
more information about the steps to renting equipment.
Marketing Budget:
 Costs- See Diagram 4
Diagram 4- Marketing Break Down
Marketing Tool Cost
Web-Designer $10,000
Graphic Designer $600 to design
$75/hr x 8hrs = $600
Printing $89.99 per 250
Mailing $0.45 x 250 = $112.50
Total Marketing Costs $11,402.49
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13. Entrepreneurship
Break Even Analysis
Based on the projected operating costs and revenue in order for Areion Custom Equine
Equipment to recover the initial costs of marketing and building one hunter and one jumper
course for rental we will have to make $23,844.86. To recover this cost we will need to rent the
hunter course thirteen times and the jumper course eleven times (3 days each time).
I would predict to consistently see higher numbers for jumper course rental due to the
fact that the course can be easily changed in to a hunter course just by using different poles.
Therefore, people with a one ring show might be more inclined to rent the jumper course and add
hunter poles to save time and money switching the course. Conservatively, speaking I do not
anticipate seeing extremely high number of rentals and I expect to see them steadily increase
over time and then balance out. There are a finite number of shows in the area and some of the
shows have access to their own jumps or jumps provided by the facility.
Further Action:
In the future we would like to seek companies to purchase jumps as an advertising
medium, allowing us to provide jumps at a lower cost to the renters. This would be
advantageous because it is extremely unique and could peak interest in our venture from large
companies and parties interested in jump rental. This would allow us to maintain quality yet
offer businesses a unique way to advertise to the equine community and its spectators.
0
2
4
6
8
10
12
14
16
18
20
Year 1 Year 2 Year 3 Year 4
Hunter Rental
Jumper Rental
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14. Entrepreneurship
References:
 "About Zone 8." About Zone 8. N.p., n.d. Web. 19 Nov. 2012.
<http://www.ushja.org/zones/zone8.aspx>.
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<http://www.inc.com/encyclopedia/advertisingbudget.html>.
 "Average Cost Website Design $2,500 Business Ecommerce Store | Colorado Springs
Web Design Marketing Denver Social Media, Seo, Email." Colorado Springs Web
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<http://www.720media.com/average-cost-web-design-wordpress-colorado-springs-seo/>.
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<http://smallbusiness.costhelper.com/graphic-designer.html>.
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<http://backinthesaddleproject.com/affordahorse.html>.
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Nov. 2012. <http://en.engormix.com/MA-equines/management/articles/moving-horse-
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 "National Economic Impact of the U.S. Horse Industry." Welcome to The American Horse
Council. N.p.,n.d. Web. 13 Nov. 2012. <http://www.horsecouncil.org/national-economic-impact-
us-horse-industry>.
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15. Entrepreneurship
 N.p., n.d. Web. 20 Nov. 2012. <http://print.staples.com/brochures.aspx?cid=PS:
GS:CP:CP:B:28:9132:+print_+brochure>.
 "U.S. Equine Market: Feed, Health Care and Services for Horses,The." - Market Research
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Equine-Market-Feed-Health-Care-and-Services-for-Horses-The.html>.
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76, Number 4. Colorado Leeds School of Business, n.d. Web. 20 Nov. 2012.
<http://leeds.colorado.edu/asset/publication/cbr7642010.pdf>.
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16. Entrepreneurship