How to start an equine therapy business: a founder's guide

Starting an equine therapy business is a rewarding venture, a field that merges a passion for horses and helping people with sound business sense. The market for these services is growing, with steady demand from diverse groups like veterans, children with special needs, and adults who seek mental health support.

This guide will take you through the practical steps of validating your business concept, securing funding, obtaining necessary licenses, and selecting the right location to help you launch a successful equine therapy business in the U.S.

Step 1: Validate your business concept and create a plan

Market and competitor research

Start by gauging local demand. You can call mental health clinics, veterans' centers, and special needs schools. Ask about their current referral partners for alternative therapies. This helps you identify service gaps and potential partnerships before you invest.

Next, analyze your direct competition. Use directories from organizations like PATH Intl. or EAGALA to find nearby centers. Review their websites and social media to understand their services, pricing, and client base. This research reveals opportunities to differentiate your business.

Budget your startup costs

Initial costs typically range from $25,000 to $75,000. A frequent misstep is to focus only on the purchase price of horses. Remember to budget for ongoing care, which can be $400-$800 per horse each month for feed, vet visits, and farrier work.

• Horse Acquisition: $3,000 - $15,000 per horse
• Tack & Equipment: $1,000 - $3,000 per horse
• Annual Liability Insurance: $1,500 - $5,000+
• Therapist Certification: $800 - $2,000 (e.g., PATH Intl.)
• Facility Lease (monthly): $500 - $2,500+

Here are 4 immediate steps to take:

• Contact three local organizations to inquire about their need for equine therapy.
• Identify two potential competitors and list their primary services and prices.
• Draft a preliminary startup budget using the cost categories above.
• Research the requirements for one certification program, like PATH Intl.

Step 2: Set up your legal and licensing framework

Choose your business structure

You might want to consider forming a Limited Liability Company (LLC). This structure protects your personal assets if the business faces a lawsuit. Many new owners overlook this and operate as sole proprietors, which leaves them personally liable for business debts.

An LLC also offers tax flexibility. Profits pass through to your personal tax return, which avoids the double taxation that corporations face. State filing fees for an LLC typically range from $50 to $500, and you can complete the process online.

Secure licenses and permits

First, get an Employer Identification Number (EIN) from the IRS. It’s your business's federal tax ID, and it is free to obtain online. You will need an EIN to open a business bank account and file taxes.

Next, check with your state and county clerk's office for local requirements. You will likely need a general business license, which can cost $50-$100 annually. Some areas also require an Animal Facility Permit or special zoning clearance for livestock.

While not a government agency, certification from an organization like PATH Intl. is the industry standard. Also, secure proper insurance. A standard farm policy is not enough. You need specific liability coverage for equine-assisted services, which can be a surprise cost for many.

Here are 4 immediate steps to take:

• File for an LLC with your Secretary of State.
• Apply for a free EIN on the IRS website.
• Call your county clerk about local business and animal permits.
• Get a quote from an insurer specializing in equine therapy liability.

Step 3: Secure insurance and manage risk

Understand your coverage needs

Your business requires more than a standard farm policy. Many new owners mistakenly believe their existing coverage is enough, which leaves them exposed. You need a package that specifically covers equine-assisted services.

Look for a policy with at least $1 million in general liability. You will also need professional liability for your therapists, property insurance for your facility and equipment, and workers' compensation if you hire staff. Commercial auto insurance is necessary for any business-owned vehicles.

Find a specialized insurer

General insurance agents often don't grasp the unique risks of equine therapy. You might want to work with a specialist who understands the industry. This ensures your policy covers incidents like client falls or other horse-related accidents during therapy sessions.

Providers like Markel, Great American Insurance Group, and Equisure specialize in this field. Expect annual premiums for a comprehensive package to range from $3,000 to $10,000, depending on your operation's size and services offered.

Here are 4 immediate steps to take:

• Request a quote from two specialized insurers, such as Markel or Equisure.
• Ask for a sample professional liability policy to review its specific exclusions.
• Create an inventory of your property and equipment to get an accurate coverage estimate.
• Confirm if your state requires workers' compensation insurance for your planned staff size.

Step 4: Find your location and get equipment

Select and prepare your facility

You will need a property zoned for livestock, often classified as 'Agricultural' or 'Rural Residential'. Contact your county planning department to confirm the requirements. A good guideline is to have at least 1-2 acres of pasture per horse to allow for adequate turnout space.

Many owners start by leasing. When you negotiate a lease, clarify who is responsible for fence maintenance and manure disposal. These items can add unexpected costs if not discussed upfront. A long-term lease of 3-5 years can provide stability for your business and clients.

Purchase your therapy equipment

With your facility secured, you can focus on equipment. Beyond basic horse care items, you will need specialized gear for therapy sessions. Some new owners underestimate the cost of adaptive equipment, so it is wise to budget for it specifically.

Here are some typical costs:

• Saddles and Tack: $1,000 - $3,000 per horse. You can find gear at suppliers like State Line Tack or Dover Saddlery.
• Safety Helmets: $50 - $150 each. Plan to have a range of sizes available for clients.
• Mounting Ramp: An ADA-compliant ramp is a significant item, costing $2,000 - $5,000.
• Arena Grooming Tool: A simple drag harrow to maintain footing can be found for $200 - $500.

Here are 4 immediate steps to take:

• Contact your local planning department to confirm zoning requirements for livestock.
• Draft a lease agreement clause for fence repair and manure removal responsibilities.
• Price out an ADA-compliant mounting ramp from two different suppliers.
• Create an equipment shopping list with budget estimates using suppliers like State Line Tack.

Step 5: Set up payment processing

Payment processing

You will want to decide on your payment terms. Many centers offer session packages, billed monthly, alongside single-session rates. For packages, a simple contract and a non-refundable deposit of 25-50% can secure a client's commitment and protect your schedule.

Some new owners get caught out by high transaction fees. While many mobile payment solutions charge rates between 2.5% and 3.5%, you can find better options. For a business that needs to accept payments on-site, JIM offers a streamlined solution.

With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. At just 1.99% per transaction with no hidden costs or extra hardware needed, it is particularly useful for collecting single-session payments right at the barn.

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done, no waiting for bank transfers.

Here are 3 immediate steps to take:

• Draft your payment terms for both session packages and single visits.
• Decide on a deposit percentage for new client packages.
• Download the JIM app to explore its interface and features.

Step 6: Secure funding and manage your finances

Explore your funding options

You might want to start with the Small Business Administration (SBA). Their 7(a) loan program is a popular choice for new ventures, offering amounts from $50,000 to over $100,000. Interest rates typically hover between 11% and 15%, and you will need a solid business plan to qualify.

Also, look into grants. Foundations that support mental health, veterans, or youth programs sometimes fund equine therapy centers. The Horses and Humans Research Foundation is a good place to start your search for organizations that value this work.

Calculate your working capital

Many new owners secure funds for startup assets but overlook the first six months of operating costs. This working capital is what keeps you afloat before client revenue becomes consistent. You should budget for at least $20,000 to $40,000 to cover this period.

Your six-month operating budget should include:

• Horse Care: $4,800 - $9,600 (for two horses)
• Facility Lease: $3,000 - $15,000
• Insurance Premiums: $1,500 - $5,000
• Salaries & Marketing: Varies based on your plan

Here are 4 immediate steps to take:

• Research the SBA 7(a) loan requirements on the SBA website.
• Identify one foundation that offers grants for mental health services.
• Calculate your estimated 6-month working capital based on your budget.
• Contact your local Small Business Development Center (SBDC) for free financial planning advice.

Step 7: Hire your team and set up operations

Hire your core team

Your team will likely have two key players: an Equine Specialist and a Mental Health Professional. The specialist manages the horses and ensures safety, while the licensed therapist guides the client's session. This dual approach is standard for effective, safe therapy.

Both often need certification from a body like PATH Intl. or EAGALA to work together. Expect to pay an Equine Specialist $20-$30 per hour. A contract therapist, like an LCSW or LPC, typically earns $50-$80 per hour.

Many new owners hire a skilled rider who lacks therapy training. This can create risk. The best teams have a certified specialist and a licensed therapist who work in tandem, ensuring both horse and human safety are prioritized during every session.

Streamline your daily operations

Once you have a team, you need to manage appointments. Platforms like Acuity Scheduling or SimplePractice help clients book sessions, send automated reminders, and handle payments. This frees you from constant administrative work and reduces no-shows.

Speaking of finances, plan for staffing costs to be 40-60% of your revenue. In a typical one-on-one session, you will have a 2-to-1 staff-to-client ratio, with both your specialist and therapist present to facilitate the work.

Here are 4 immediate steps to take:

• Draft job descriptions for an Equine Specialist and a contract Therapist.
• Research certification requirements on the EAGALA or PATH Intl. websites.
• Compare the features of two scheduling platforms, like Acuity Scheduling and SimplePractice.
• Calculate your projected staffing costs based on a 50% revenue target.

Step 8: Market your business and acquire clients

Build referral partnerships

You can build a strong client base through referrals. Reach out to local mental health professionals, pediatricians, and veterans' organizations. Offer to give a short presentation about your services at their staff meetings to explain the benefits of your work.

Some owners focus too much on social media and neglect these professional connections. A single referral partner can send you more clients than a month of Facebook posts. Aim to establish two solid referral relationships within your first three months.

Create an online presence

Your website should clearly list your services, therapist credentials, and pricing. Use high-quality photos of your facility and horses. A blog post that shares a client success story, with their permission, can be a very effective marketing piece.

You might also host a free open house or a low-cost workshop. Consider a partnership with a local yoga studio or wellness center to cross-promote an event. This lets potential referrers and clients experience your work firsthand and builds community trust.

Here are 4 immediate steps to take:

• List five local therapists or clinics to contact for referrals.
• Draft an outreach email to introduce your services to these professionals.
• Outline one blog post idea, such as a client case study.
• Plan a simple open house event for the upcoming quarter.

Step 9: Set your pricing and profit goals

Determine your pricing model

You can offer services per session or in packages. Individual sessions often range from $125 to $200. Group sessions are typically more affordable for clients, around $50 to $80 per person. Packages, like eight sessions for a 10-15% discount, encourage client commitment.

Many new owners make the mistake of underpricing. They calculate their direct costs but forget to value their team's specialized skills. Your price should reflect the professional expertise you bring, not just cover feed and facility lease payments.

Calculate your profit margin

With your pricing model in mind, you can set profit goals. A healthy net profit margin for an equine therapy business is between 15% and 25%. This allows you to reinvest in the business, handle unexpected costs, and pay yourself a fair salary.

To find your price, add up your total cost per session, including staff time, horse care, and overhead. Then, divide that cost by (1 - your target profit margin). For example, if your cost per session is $100 and you want a 20% margin, you would charge $125.

Here are 4 immediate steps to take:

• Research the pricing of three other certified equine therapy centers in your region.
• Create two pricing tiers: one for single sessions and one for an 8-session package.
• Calculate your cost per session and determine a price that yields a 20% profit margin.
• Draft a simple pricing sheet that clearly explains your rates and package options.

Step 10: Maintain quality and scale your business

Establish your quality standards

Your reputation depends on consistent, high-quality care. You can adhere to the PATH Intl. Standards for Certification and Accreditation as your benchmark. These provide clear guidelines for safety, horse welfare, and ethical practice. Some owners focus only on horse care and neglect to track client outcomes.

To measure service quality, you might implement a simple client feedback survey after every 4-6 sessions. Ask clients to rate their experience and progress toward their goals. This data helps you refine your approach and demonstrates your program's effectiveness to referral partners.

Know when to grow

Growth should be deliberate. A good trigger to hire another team member is when your primary therapist reaches 80% capacity for three straight months, or your waitlist grows beyond 10 clients. This prevents burnout and ensures clients do not wait too long for services.

As you add staff, a platform like SimplePractice becomes very helpful for managing multiple schedules and centralized client notes. It keeps your operations organized. Consider expanding your facility only after you have a second team consistently booked for at least six months.

Here are 4 immediate steps to take:

• Download the PATH Intl. standards manual to use as your quality guide.
• Create a 3-question client feedback form to track outcomes.
• Define your hiring trigger, such as a waitlist of 10 clients.
• Review SimplePractice's group practice features for future scaling.

Starting an equine therapy business is a journey of heart and hard work. Your success will hinge on the trust between client, therapist, and horse, so nurture that relationship above all else. You have the roadmap, now go make a difference.

As you get set up, keep your payments simple. JIM turns your phone into a card reader to accept payments for a flat 1.99% fee, with no extra hardware. It makes getting paid at the barn easy. Download JIM to get started.