California farrier Tom Trosin maintains it’s critical to know the dollars you are earning from each horse in your practice if you’re going to run a successful footcare practice.
After 22 years of shoeing, Tom Trosin maintains he’s made almost all of the mistakes a farrier could possibly make in running a business. The Moorpark, Calif., shoer hopes that his experiences can help you avoid many costly errors. Here are some of the things he’s learned:
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To succeed in the footcare business, you’ve got to be disciplined, especially in the credit area. Debt in both your footcare business and your personal life should be avoided.
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Hire an accountant. Get good financial advice now, for the future and for retirement.
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Maintain a savings account with at least a 3-month reserve.
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Don’t buy something you can’t afford and don’t really need. “As an example, many young farriers start with the purchase of a $30,000 rig that they can’t afford,” he says.
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Maintain separate checking accounts for your hoof-care business and family expenses.
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Avoid finance and interest charges at all cost. “With a significant amount of credit card debt, finance charges can be anywhere from $2,500 to $3,000 per year on just an $8,000 balance,” he says. “So instead of having an $8,000 debt, all of a sudden you may owe over $11,000. And being late with the payment on just one card may lead to a higher interest rate on all your cards.”
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Avoid high credit ceilings. “If you have a credit…