There are a lot of costs for any footcare business. Materials, insurance taxes and so on. But which is the most significant cost? California farrier Margie Lee-Gustafson believes it is what you pay yourself. Without paying yourself first, you may not be earning your full potential

In a presentation at the 2018 American Farrier’s Association (AFA) Convention in Reno, Nev., Lee-Gustafson shared her exercise in determining what to charge per horse. It relies on you understanding and honestly factoring in each cost your business incurs.

Where to Start: Pay Yourself First

Table 1 shows the various steps in the cost analysis exercise. Lee-Gustafson says the first step in this exercise is to pay yourself a salary. For her plan, the past AFA president created a scenario of a farrier who wants to earn $60,000 per year ($5,000 per month). The scenario factors in shoeing five horses per day, working 5 days a week.

Of course farriers should pay themselves for vacation, holidays and other time off. Lee-Gustafson factors there are eight traditional holidays, 5 days off for continuing education, miscellaneous personal days and vacation days. Together with the…