Buying a Thoroughbred racehorse is not a complicated process. But like many new matters, there needs to be enough planning and thought process beforehand to be sure you understand your goals, budget, timelines and overall objectives. The best way to accomplish this is to develop a business plan. It doesn’t have to be a complicated plan. A simple document that establishes key elements of your horse ownership will do the job. But many new Thoroughbred owners forget that their ownership should be approached as any business and having a plan is critical to your success. Manage your equine investments as you would manage any other investment or business activity, including exercising good, sound business judgment.
When developing your Business Plan consider the following thoughts:
- Lay out your objectives from the start
Establish your budget
Lay out your timetable
Decide where you plan to race & what type of racehorse you plan to own (colts, fillies, classic runners, claimers, etc)
Evaluate your ability to invest at the level you prefer and if you have any doubts about your ability to participate at this level, scale back. You can always move up once you learn more about the game.
Identify how & where you will purchase your racehorses
Decide if your horses will be insured
Select a qualified advisor(s) that understands your objectives.
Always establish what fees (if any) your advisor(s) charge for their services
Be rational not emotional and remember Thoroughbred ownership is a business
