In my mind, there's a lot of incentive for Dutch members of our group.
1. The strength and robustness of the North American breeding pool directly contributes to frozen semen and horse sales of our counter-parts in Holland.
2. Directly related, the larger stallion owners, such as VDL and Nijhof have long supported North American breeders--it's good for them and good for us
3. It will best serve North American needs if any stallions we get approved begin their careers in Holland--the breeding base is bigger, they get an index, they get an immediate foal report, they get the early stallion competitions, and they develop a reputation--the income a popular young stallion in Holland can generate is substantial
4. The people I've invited are friends of mine and people I trust who both will look out for our interests and have connections to possible colts we might not have otherwise.
Saturday, December 15, 2012
Trade for Skills and Services
This is a no-brainer for me. We're eventually going to need some accounting services, legal services, training, advertising, etc. It's not a given that just because someone comes forward and offers a service we agree to a barter situation, but there will certainly be needs, times, and situations in which it's appropriate. I certainly intend to deduct my out-of-pocket expenses from my portion. I don't expect this group to pay me anything, but I also don't expect this group to cost me money, either.
Invite Others?
I'm of the general opinion "the more the merrier." That being said, I invited people with a genuine interest in Dutch breeding and an interest in promoting Dutch breeding in North America for the benefit of their own programs, the benefit of their current business connections in North America, the potential access to top riding prospects, and/or the promotion and development of their programs in Holland. Moreover, I invited people I like and trust. If you want to invite someone else to consider joining us, just give me a heads up so we can have a conversation about it. Believe it or not, my secondary goal is the strengthening of the North American breeding pool; my primary goal is to be excited about a project and have fun with this. I'm not interested in managing a bunch of crazy people.
From Loucky
What a good idea and plan to start this great idea.
In the region Zeeland we started 2 years ago with a similar plan, we bought a colt and it was a disaster- not tall enough and a colt was lacking the great movements. The colt had an excellent pedigree and all the horses out of this bloodline were great movers and good performers. We sold the colt and had a loss.Now we bought another colt via a foal auction with the remaining money and additional funds from our members ( 18 in total).We are happy with this colt and he is now in a opfokbedrijf. (farm that raises colts)
Every 2 months we do a kind of evaluation, very nice because it is also a social event with all those breeders.
We had also an other obstacle, 2 members wanted to quit and wanted their part of the money in return( was in the bylaws mentioned). Now we had this changed in our bylaws.
Also another point of attention is that many foal auction require an amount of money, sometimes Euro 10.000 when the colt is approved by the KWPN. Some breeders have the same policy,so be aware with the budget.
Friday, December 14, 2012
Ownership of the LLC
Carol and I have started three LLCs over the years, but I'm not a lawyer. Let me check into the options.
If everyone who participates in 2013 is a member of the LLC, what happens in 2014 if one or more of the people want to keep their ownership in the 2013 colt(s), but don't want to participate in the 2014 prospect(s)? That's my biggest question.
My other question is, if we are all members, how membership in the LLC is handled for Dutch natives. We have interest from a number of people whose legal residence is Holland.
I'm going to have to check with our lawyer.
If everyone who participates in 2013 is a member of the LLC, what happens in 2014 if one or more of the people want to keep their ownership in the 2013 colt(s), but don't want to participate in the 2014 prospect(s)? That's my biggest question.
My other question is, if we are all members, how membership in the LLC is handled for Dutch natives. We have interest from a number of people whose legal residence is Holland.
I'm going to have to check with our lawyer.
We've Got Lots of Interest and Questions
A couple people want to be able to see and respond to all the feedback and reactions. Rather than have this turn into an email nightmare, it makes more sense to me to start a blog. I may be the only person who can initiate a new topic, but all of you should be able to post comments. If you want a specific topic raised, or if one naturally appears through conversation, let me know and I'll start the thread.
Original Email
Hello, everyone.
OK. I think I’m at a place with both my health and my life that I’m ready for another major project: Looking Forward, LLC.
North America needs KWPN breeding stock, especially stallions available via fresh cooled semen. The lack of access to quality stallions is an ongoing problem and a limiting factor to the success of our breeding programs, and, indeed, the KWPN-NA as an organization itself. The problem is compounded by our small breeding base and the price of approved stallions of sufficient quality. We can lease or buy an older stallion that is no longer used much in Holland, but this has limited benefits. My idea has long-term and ongoing benefits. We start a group of investors to buy weanling colts, raise them in Holland, and attempt to get one approved occasionally. Basically, we function as a stallion station or individual with the buying clout to pick up a top prospect or two each year. Here’s how I envision it working:
-we form an LLC (Limited Liability Corporation) in New Hampshire--we buy the colts in the name of the company.
-we attempt to buy between one and three top quality colts per year-ideally two.
-initial investment is $5,000.--if 10 people are involved, this raises $50,000. to use for the first year of purchasing. The number can be greater or fewer--will depend on the year and the people who want to be involved.
-we split the costs of raising these colts--average young horse raising costs are approximately 150 Euro/month, so between 10 people, that’s not a lot, even if we have more than one colt. When the time comes to prep the colts for inspection, the costs go up a bit, but that’s probably in the range of 500 Euro/month for the months involved, then whatever it costs for the entry fees, radiographs, etc. Again, split among 10 or more people, it’s really manageable. Even if you’re involved every year, we’re probably talking about 4 to six colts that you’re part owner of before we either, most probably, sell or get a horse approved.
-if the colts are not accepted, they are sold.
-each year, the individuals who wish to be part owners of additional colts, put in another investment amount for purchases that year. Just because you’re part owner of 2013’s colt(s), does not mean you have to be of 2014’s, but you will still cover your share of the expenses on the 2013 colt(s). When 2015 rolls around and you want to invest in that year’s colt(s), you can. You only pay a portion of the expenses of the colts purchased in the year(s) you buy in. Similarly, if a colt is approved and, subsequently, has breeding income or sold, you only benefit if the colt is from a year you bought in.
-we get a certain number of breedings to any approved stallions without a breeding fee--collection costs, etc. will have to still apply so it’s not costing the person standing the horse.
-I’d like some native Dutch people involved for a couple of reasons: one, it will be to our benefit financially and reputation-wise to have any young stallion begin his breeding career in Holland, and they can help with this; two, they speak the language; three, they will have contacts that may help us procure some top colts; and, three, I like the people I’ve invited and would love to have them part of this group.
-I’d like some major KWPN stallion holders involved because it is to their benefit the North American breeding base grow, and it’s great public relations for them to be actively in support of that growth.
-everyone involved is welcome to give input, help search for possible colts, offer advice, etc, but, after taking everything into consideration, the final selection and/or purchasing decisions will be mine.
-I’ll work though a lawyer to establish the LLC and contracts--I’m not sure what the terminology will be--it’s possible that we call them shares/part ownership/just not sure legally what it is, but the ownership would be transferable, saleable, willable, etc.
This is a conversation right now. I’d prefer that this is an invitation-only group. That being said, if we can’t get 10 people to start, I’ll make it more public. Send me an email or give me a call with questions, interest, scepticisms, etc. If you want off the email list so you’re not kept in the loop, let me know that as well. My feelings won’t be hurt...for more than a minute or two. I just want to get the conversation started so we can begin in 2013.
Scot
OK. I think I’m at a place with both my health and my life that I’m ready for another major project: Looking Forward, LLC.
North America needs KWPN breeding stock, especially stallions available via fresh cooled semen. The lack of access to quality stallions is an ongoing problem and a limiting factor to the success of our breeding programs, and, indeed, the KWPN-NA as an organization itself. The problem is compounded by our small breeding base and the price of approved stallions of sufficient quality. We can lease or buy an older stallion that is no longer used much in Holland, but this has limited benefits. My idea has long-term and ongoing benefits. We start a group of investors to buy weanling colts, raise them in Holland, and attempt to get one approved occasionally. Basically, we function as a stallion station or individual with the buying clout to pick up a top prospect or two each year. Here’s how I envision it working:
-we form an LLC (Limited Liability Corporation) in New Hampshire--we buy the colts in the name of the company.
-we attempt to buy between one and three top quality colts per year-ideally two.
-initial investment is $5,000.--if 10 people are involved, this raises $50,000. to use for the first year of purchasing. The number can be greater or fewer--will depend on the year and the people who want to be involved.
-we split the costs of raising these colts--average young horse raising costs are approximately 150 Euro/month, so between 10 people, that’s not a lot, even if we have more than one colt. When the time comes to prep the colts for inspection, the costs go up a bit, but that’s probably in the range of 500 Euro/month for the months involved, then whatever it costs for the entry fees, radiographs, etc. Again, split among 10 or more people, it’s really manageable. Even if you’re involved every year, we’re probably talking about 4 to six colts that you’re part owner of before we either, most probably, sell or get a horse approved.
-if the colts are not accepted, they are sold.
-each year, the individuals who wish to be part owners of additional colts, put in another investment amount for purchases that year. Just because you’re part owner of 2013’s colt(s), does not mean you have to be of 2014’s, but you will still cover your share of the expenses on the 2013 colt(s). When 2015 rolls around and you want to invest in that year’s colt(s), you can. You only pay a portion of the expenses of the colts purchased in the year(s) you buy in. Similarly, if a colt is approved and, subsequently, has breeding income or sold, you only benefit if the colt is from a year you bought in.
-we get a certain number of breedings to any approved stallions without a breeding fee--collection costs, etc. will have to still apply so it’s not costing the person standing the horse.
-I’d like some native Dutch people involved for a couple of reasons: one, it will be to our benefit financially and reputation-wise to have any young stallion begin his breeding career in Holland, and they can help with this; two, they speak the language; three, they will have contacts that may help us procure some top colts; and, three, I like the people I’ve invited and would love to have them part of this group.
-I’d like some major KWPN stallion holders involved because it is to their benefit the North American breeding base grow, and it’s great public relations for them to be actively in support of that growth.
-everyone involved is welcome to give input, help search for possible colts, offer advice, etc, but, after taking everything into consideration, the final selection and/or purchasing decisions will be mine.
-I’ll work though a lawyer to establish the LLC and contracts--I’m not sure what the terminology will be--it’s possible that we call them shares/part ownership/just not sure legally what it is, but the ownership would be transferable, saleable, willable, etc.
This is a conversation right now. I’d prefer that this is an invitation-only group. That being said, if we can’t get 10 people to start, I’ll make it more public. Send me an email or give me a call with questions, interest, scepticisms, etc. If you want off the email list so you’re not kept in the loop, let me know that as well. My feelings won’t be hurt...for more than a minute or two. I just want to get the conversation started so we can begin in 2013.
Scot
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