The Company
Ereidi Farm began as a home-based part-time endeavor while the owner raised her young child. Her many years in the industry made her well suited for the services offered by the farm. Ereidi Farm functions as a quality thoroughbred breeding and training farm specializing in highly individualized care programs designed for each horse's needs. Ereidi Farm has always focused on its clients and their equine investments and genuinely enjoys assisting clients.
Our committment to our clients is long term, our focus has never ended at the point of sale - we are absolutely committed to the success of our clients and we go above and beyond the normal practices when providing our clients with all the information they require to make knowledgeable, informed decisions concerning their bloodstock investments. Due to the demand for our services, our farm is planning on relocating to a larger facility and is now in the process of incorporating to better facilitate the accounting end of the business management.
The Product
Ereidi Farm provides the following services to its market: breaking and training of young racehorses, broodmare care, and rehabilitative care for injured racehorses. Our programs are individualized and no horse is pushed through a program just to get the job done. Horses graduating from our programs are confident, fit, healthy and relaxed about the work, they are winners!! We offer exceptional care for pregnant and foaling mares. We will except high-risk mares - our farm has had a 100% live foal ratio every single year despite foaling out older and problem mares, we take very good care of these special ladies! Our rehabilitative services have horses from all states of the region arriving at our farm for post-operative work and therapy.
The thoroughness of our care insures that these athletes recover completely with minimal complications. All of the horses rehabilitated by the farm have gone on to useful careers, many returning to racing and running in improved form. Our home-grown sales reflect the owner's knowledge of equine genetics; horses from the farm's breeding program have won races at their very first asking and have posted bullet works in training. They are bright stars and have done a fabulous job representing the farm and their owners. Most importantly we provide "Full Circle" service for our clients. Our committment to their success is long lasting and at a depth not found in the racing community at large. Their success is our success and we are deeply aware of this need within the industry.
The Market
The thoroughbred industry continues to grow in the United States. The racing industry within the state of Pennsylvania is poised for an explosive period of growth within the next year as slot machine legislation is approved and passed. The demand for Pennsylvania-bred horses is on the rise as is the need to raise and train these individuals. Pennsylvania is focused on becoming the premier racing state in the country, surpassing all other states in its purse and bonus monies awards, this is attracting large numbers of horses to Pennsylvania and the need for facilities to house them is growing rapidly.
This growth, coupled with the deterioration of traditionally strong racing state programs has caused a flurry of activity as owners of breeding and racing stock within these declining states seek to relocate their investments. We have targeted these owners as well as brand new investors and Pennsylvania owners looking to upgrade their programs as clients for our expanded farm. Our marketing programs are focused on promoting using the venues that are commonly used by those in our target market. These programs are designed to bring potential clients to our farm, the location where sales are most frequently completed. We realize that technology is absolutely necessary in today's markets and we have embraced its use happily and with success.
Financial Projections
Our farm has started out small for specific reasons, we are now looking forward to an expansion that will allow us to utilize all of our skills. The owner's husband is currently the parts and service director at his place of business, responsible for $13.3 million dollars of parts and service sales annually and maintaining a large inventory. He has 65 employees reporting to him. He will be mentoring the owner on the financials.
In summary, the financial projections represent the growth that will occur upon the relocation of the farm to its new world class facility. They represent the planned growth that is possible with the securing of a facility that is large enough to accommodate the ever-growing needs of the marketplace. We expect profits for two reasons: 1) we are timing our market expansion at a critical time, just as the Pennsylvania thoroughbred industry enters its largest growth phase in its history and 2) our services to clients and their bloodstock is exceptional, it is simply world class.
1.1 Keys to Success
A well-targeted marketing plan utilizing modern technologies as well as traditional formats.
Providing a quality facility that is attractive to our clients.
Following through on delivering the quality of service that our marketing and facility images promise. Ereidi Farm has built its reputation by exceeding our client's expectations. Our attention to detail and our commitment to our clients remains unsurpassed within the industry.
1.2 Mission
The purpose of Ereidi Farm is to increase our clients' opportunities for successful thoroughbred investment by providing word class quality, individualized care and training programs at a safe facility which is staffed by caring, experienced personnel. Everyone at Ereidi Farm has a deep commitment to our clients. We believe that constant communication, unquestionable integrity and our ability to provide "Full Circle" services are the hallmarks of the success and growth of our farm.
1.3 Objectives
- Secure financing to purchase a turn-key facility that is located on a parcel of land in a developing area. The facility must represent real value, selling for less than its cost to build and having a location that is targeted for long-term growth and development, thus increasing the value of the land.
Land parcel must be suitable for other uses than farming to provide long-term development options. Interstate access, both locally and regionally must be excellent. Land must be located in an area that has required support structures in place suitable to a horse farm.
- Close sale on current farm facility to generate approximately $300,000 of capital to reinvest into business expansion.
- Achieve break-even status within one year of relocating to the larger facility.
- Maintain a comfortable net profit into the second and third years.
