Equestrian Tourism In Australia: Spirit Of The High Country Essay.

What could create a more iconically Australian image that an akubra clad Jackaroo sitting around a campfire, surrounded by breathtaking countryside with a brumby resting off to the side and the humbling words of Banjo Patterson whispering on the breeze.

The Contribution of Equestrian Events to the Australian Economy

Tourism in Australia is one of the significant part of the Australian economy.  Sydney, Brisbane, Queensland and the Great Barrier Reef are some of the popular destinations for tourists in Australia. The growth of Australian tourism has increased despite the various economic challenges. Equestrian tourism has been quite famous in Australia for the past few decades. Victoria’s love affair with the horse riding is deep roots with the state’s history and culture. Horse riding is one of the main attractions for tourists in the Rainbow Beach because of its most beautiful beaches in the world (Buchmann 2017). The importance of horseback riding has been increasing although it has been quite expensive. Equestrian tourism in Australia has a quite high expenditure and the tourists have to spend a lot of money during the field riding. Over seventy percent of the gross domestic product of Australia is associated with entertainment and recreation industry. The main activities under the horse renting industry consist of racing, breeding and equestrian events. It has also been found out that Equestrian brings about more than $1 billion to the economy.

As Australia is famous all over the world for its natural wonders along with wide open spaces, deserts and beaches, horse riding business is therefore very famous in Australia. The horse industry had made a quite huge progress in the last few years in Australia. The horse industry is known to contribute over $6.2 billion every year. Horse business, equestrian events, racing and breed events along with the maintenance of horses contribute a huge amount to the Australian economy (Ekegren et al. 2018). Most of the horses are sold either directly or through auctions.  Though horse riding business is quite popular in Australia, the maintenance cost of the horses is very high Presence of strong tourism culture in Sydney and Australia makes equestrian tourism quite popular. Australian beaches, large islands, accessible fringing reef and the perfect whether makes beach rides. The above reasons therefore prove that the horse renting business in Australia will be quite successful.

The business name of the horse renting company is Spirit of the High Country which will be set up in Victorian High Country in Australia. Renting of horse for tourism has huge benefits. The arrangement consists of a formal agreement between the owners and the riders. Horse renting has been a popular business even in economically challenging times (Buchmann 2017). Therefore, riding stable business can be highly profitable when it is planned and managed properly.

Benefits of Horse Renting

The management team of the horse renting business includes experienced staffs and riding instructors who are quite experienced in training horses. Staffs that can assist with the ventures are also need to be hired (Björlinger and Johansson 2016). The facility should have a feed room, water trough, stalls, proper storage places for beddings and hay. Moreover, it should also consist of maintenance equipment along with paddocks and fields. An equestrian facility should be created for the purpose of training, maintain and accommodating horses. The management team will also include veterinary physician who will look after the horses. It will also include quality farrier service along with veterinary care. 

Revenue goals / customer service goals / community outreach goals:

The major revenue gaol for the business is to increase over the period of five years, which would eventually help in supporting the finance cost and other operational activities. In addition, the aim is to business is to increase the revenue to about 15 million until the end of 5^th years, which might help in supporting the expansion plans.

In similar context, the overall customer service goal of the business is to increase its exposure in hospitality industry, which might help in improving the current financial performance of the company. The business aims in providing services such as hotels, restaurants and vacation place for customers to improve their leisure experience in Australia.

The improvement in the overall service quality would benefit the Australia community, as higher income will be generated from tourism. This would also increase the level of employment, which might help in raising the community living standards.

Short term goals:

The short term goal of the business is to penetrate the market and make a name as the potential competitor. This would eventually help in boosting the required level of income for continuing the business and generating high level of income. The extensive use of marketing strategies and planning would eventually help the business to penetrate the market and attract potential customers into its vicinity.

Medium term goals:

The midterm goal of the business is to obtain positive cash flow and generate adequate returns from supporting its finance cost and improve is business operations. The medium term goal is to increase its market share by utilising the adequate marketing strategies and maximise the level of revenues from its operations.

Long term Goal:

The long term goal of the business is to expand its operations and generate high end revenue. The expansion process will engulf the whole Australian continent, which is currently restricted to a specified area. With the expansion plans the organisation will also intend to increase its exposure in the hospitality industry, which is booming in Australia due to high end natural beauty.

Management Team and Facilities

A simple marketing analysis is performed that assists in the acquaintance with the customers as well as the competitors. A value proposition is created, and a production of sturdy and achievable goals is performed. Thus, a transparent emphasis of the strategic marketing campaigns is created.

Horse riding business does not face intense competition like any other businesses, but this requires patience, experience and the most important is the capital for getting the success. The maximum conceivable ethical business performs for the business and a standard is maintained during the time of commerce with the customers as well as the fellow suppliers and the horse industry’s service providers.

It is very significant to maintain a great status in the industry. The primary goal is to make sure about the growth of the level remains stable and to be the chosen one in the target market. This is attainable by making sure about structuring a business that is continued without any complications. The main targets from whom the business can earn revenue are the children, celebrities, young adults, movie productions, tourists, race courses as well as the circuses.

For attaining goals in the business, a good training as well as experience is required for the management staff as well as the junior staffs who are well agreed to the core values. The employees are well salaried so that they remain motivated and thus, remains committed for the attainment of the vision of the business. The business should hire the best riding instructors who are available in the country.

The trading of horses and teaching are the aspects that are to be most profitable in the business of the horses. For this there is a requirement of expertise. The top horses as well as the amateur horses are to be imported from the international market. There should be proper business plan and the target market is to be assessed to achieve profit for a business.

There should be proper knowledge of the target market as well as the competitors for running a similar business. Thus, new procedures regarding the implementations of rewards or discounts for the expansion purpose of the business. Proper marketing plans are to be implemented for the expansion of the business. Social media are also to be included in the business for the expansion purpose.

Publicity and the strategy of Advertising:

For the expansion of the business it is very important to perform publicity in respect to that company which is willing to begin a standard as well as a standard company when there is a competition that arises because of the competitors. There is performance of right strategies by the process of strategy that is drafted which increases the awareness of the customers. A brand consultant is hired who is very much capable of the business of the horse industry. For the revenue generation purpose advertising is performed at the fed stores for the creation of awareness. In the local newspapers and in the magazines, the radios as well as in the television the advertisements are provided. Adverts in the horse show programs are placed and in the major equine events the publications are organised

Revenue and Service Goals of Spirit of the High Country

Sales forecast:

For the providence of an accurate report for the determination of the sales projections, a critical examination is to be performed in the industry of the horse riding of the business of horse riding. Thus, the chances of analysing that derive an accurate forecast of the sales. The sales projection that is conducted is grounded on the assumptions. 

Sales and the marketing strategy:

For a business that is starting up or a business that is already established the term marketing plays a very important role as an awareness is created by the marketing and by creating awareness capital is made. The billboards are installed in the strategic locations with the well-known trails. Social media platforms for instance the Facebook, twitter, Instagram are also to utilised in this respect.

Pricing strategy:

The services should provide right prices as there are other competitors who are indulged in the same businesses. Thus, a whole research is to be performed on the offering that is offered by the competitors and the prices are made lower than that of the competitors. To gain new customers discount should be offered as well as for the loyal customers there should be rewards which is offered to them.

Payment:

The customers are to be offered with various modes of payments that are either by cash or check or via credit card and by the mode of online payment.

Budget:

For the beginning purpose of a horse riding business a large amount of money is to be spent for making the business run smoothly and also for making a standard.

Income Statement:

Balance Sheet:

Cash Flow Statement:

The total funding estimate is calculated as per the initial capital requirements of the business plan. Therefore, the amount of $721,183.53 is considered to be finding capital that will be needed from the investor to start the business. The 51% of the share capital is being invested by the owners, while the other 49% is being accumulated from investors.

Risk assessment is relevantly needed for each business for surviving the competitive market and building strategies to obtain sustainable growth. The 35% of the business capital is relevantly gathered from debt or loan, which is considered to be a highly risky endeavour for the business. However, the financial projection has relevantly indicated that the positive cash flow can adequately support the overall business performance, while handling the finance cost. Nevertheless, there is different level of risk from operations, which might increase problems for the business. The risk measurement condition might allow the organisation to support its business and minimise the level of risk from investment. 

Marketing and Financial Milestones

Operational risk mitigation:

The lack of horses can be a major problem for the business, where for mitigating the risk the purchases of the horses would conducted straight from branded organisations. This would eventually help in making a contract, where the horses could be provided by the company in case of emergency, which will reduce the risk from operations being halted.

Risk from rising finance cost:

The rising finance cost directly erodes the overall net profits, which is made by business. Hence, the declining profits would hurt the business and devour the initial capital, where the transferring the loan to other financial organisations with low interest rate can be conducted for securing the business from being bankrupt.

Rising competiveness:

The competition in the business is relevantly high, as the target customers are Asian and American in Australia. However, the mitigation to the risk can be conducted with adequate advertisements, which might allow the business to compete in the market. Marketing through tourism companies, internet and target customer might allow the business to gather the required level of sales for surviving the competition. 

The Exit strategy for the investors is relevantly designed, which can allow them to generate adequate returns from their investment in the initial business plan. There are two different types of exit strategy, which are repurchasing by the promoters and secondary sale. The initial investors can only exit from the business after the duration of 3 years, where the overall cash flow of the investment will relevantly increase over time. The investment will be blocked for the maximum period of three years after which the investors will be allowed to take the relevant decisions for holding the stock continuously opting for the exit strategy. The cash flow condition during the third financial year will be adequate for supporting the repurchase of stocks, as investors was to exit the strategy. The valuation at exit will be deemed at the market value of the shares that has been purchased by the investor. The market value will be deemed with the performance of the organisation and its capability to sustain higher growth and expansion in future. There is possibility, where the performance might not be perfect in real world experience. In this particular scenario the assets bought will be sold to pay off the investors and continue with the operations. 

References and Bibliography:

Björlinger, K. and Johansson, S., 2016. Equestrian Tourism in Trinidad: Every horse has something to teach, every human something to learn.

Buchmann, A., 2017. Insights into domestic horse tourism: The case study of Lake Macquarie, NSW, Australia. Current Issues in Tourism, 20(3), pp.261-277.

Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable world. Routledge.

Ekegren, C.L., Beck, B., Simpson, P.M. and Gabbe, B.J., 2018. Ten-year incidence of sport and recreation injuries resulting in major trauma or death in Victoria, Australia, 2005-2015. Orthopaedic journal of sports medicine, 6(3), p.2325967118757502.

Genkin.org. 2018. Craig's Hut at Twilight, Alpine National Park, Mansfield, Victoria, Australia. [online] genkin.org. Available at: https://www.genkin.org/cgi-bin/photo.pl/landscapes/alpine-mountains/victorian-alps-and-high-country/au-mansfield-craigs-hut-0004 [Accessed 8 Oct. 2018].

Pölling, B., Prados, M.J., Torquati, B.M., Giacchè, G., Recasens, X., Paffarini, C., Alfranca, O. and Lorleberg, W., 2017. Business models in urban farming: A comparative analysis of case studies from Spain, Italy and Germany. Moravian Geographical Reports, 25(3), pp.166-180.

Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management. Pearson.

Watson, K. and McGowan, P., 2018. Emergent Perspectives toward the Business Plan among Nascent Entrepreneur Start-Up Competition Participants. Journal of Small Business and Enterprise Development