Tiny Houses

Tiny Houses

Company Description

            The name of the business is Yolanda Tiny Houses Project. The mission of this business is, “Ensuring affordable housing for the underprivileged in society”. For the vision of the company it aims to ensure that by the year 2030, all veterans living in deplorable conditions will move to quality houses. The slogan for the company is “Affordable houses for all and sundry!” The owner of this particular project is Yolanda and is located in Southwest GA. The aim of establishing this venture is to ensure that there are affordable houses for different types of people and more specifically the veterans, retirees and single families. Over time, veterans have faced the brutal reality of mistreatment after service where they are not accorded most of what was promised before deployment.

            Retirees are also to benefit from the project as well because they do not have a steady flow of money. The retirees only depend on their pensions for survival. Another group of people that will benefit are the single families. Single families constitute a few number of people and in a nuclear setting, this is only the mother, the father and the child/children. The reason why the single families are targeted is owing to the size of the houses. As in the description, the houses are “tiny”. Extended families cannot survive in such houses for it could lead to congestion and poor hygiene. The retirees and the vets will take up one story houses and since the number of single family members is more they will take up two story houses.

            It is important to identify the fact that since free electricity will be assured in the apartments, and then this business plan is more attractive as compared to others. With free electricity, the rent also goes down. The statement is a point that will not only attract clients, but also investors that have a green-environment agenda. Activists will be quite involved in this project and will prove a crucial part to the growth of the Tiny House project, a goal that was set at an earlier date.

Market Analysis

            The real estate industry is one that has seen numerous changes in the modern environment. Initially, the government had the responsibility of having buildings erected in different parts of the area where it has invested. However, the contemporary environment has seen a surge in the number of private investors. As in this case, Yolanda is the developer and the owner of the project. As the owner of the project it is important to note that the number of competitors have also increased as compared to earlier times. The more the competitors, the better the market conditions and this is because they ensure that the other institutions offer quality work in their designated projects. 

            The price of houses has also reduced in the modern environment and this is where the government has lowered the mortgage rates (Donoso, 2017). The low mortgage rates have led to an increase in the demand where many people have managed to purchase the houses at affordable prices. The market has been quite volatile and the reason for this is the fact that many companies have come up in the contemporary environment. As time has progressed, the industry has changed with regard to the quality of the houses. Through quality competition, the market does not have to be a monopoly as before where the government was the one controlling the industry. Currently, it is possible to see the industry becoming more versatile and houses becoming more affordable (Awad et al, 2018). For the Tiny Houses Project, it is possible to see a high number of units and this is because of the lower prices charged by the raw material providers in the industry.

Operations and Management

            For Tiny House Project, the best organizational and management structure to incorporate is divisional management. The importance of incorporating this strategy is given the nature of the work that is to be handled. The project is supposed to stand for three different groups of people all with different needs. The various groups include the retirees, the veterans and the single families in the society at the time. The reason why this operations management procedure is chosen is from the fact that it will be possible to address all the matters in time.

            Through Divisional management then it will be possible to discover the various possibilities that might present themselves when carrying out a development project (Rydland&Stensaker, 2018). Specialization is important for it will enable the various contractors in the Tiny House Project to focus on their work more effectively. A project such as the Tiny House requires a lot of work and having a small group of people take up responsibility as a whole will not only delay the process but will also lead to shoddy work. It is imperative to note that once a client is dissatisfied with the work or fails to get the results within the stipulated timeline, then it becomes hard to trust the contractors assigned.

            There are various divisions that the Tiny House project is supposed to incorporate and an example of this is the finance department. The finance department is supposed to oversee that all the funds that are supposed to go to a contractor, the builders and the raw material providers gets to them in time (Meynerts-Stiller &Rohloff, 2019). The contemporary environment is one that has seen technology increasing in the construction field and for Tiny House Project; it is possible to see to it that the information technology department handles all the logistics associated with the company. Another department is the marketing department that handles advertisement of the available housing units to potential customers.

Service or Product Line

            The specific products that this institution is seeking to offer the potential clients are affordable housing units. The contemporary environment has been rather challenging and the reason for this is that the economy has dipped thus making the price of various commodities to sky rocket. The people that the product focuses on explicitly are the veterans, the retirees and the single families. The veterans suffer a lot and this is because some of them come from the war lacking the ability to carry out some of the local business activities. Some of the reasons for this is that they might be suffering from physical injuries or Post Traumatic Stress Disorder. The housing units are going to assist the veterans and the reason for this is that they will understand that there are housing units where they can reside rather than putting the burden on the other family members.

            Once veterans realize that there are affordable houses, they can engage in small activities that can earn them some little income to pay rent.  The retirees are also bound to benefit and this is because they will minimize the amount of money that they spend on other expensive houses thus sustaining their pension for a longer period. The single families will also see the advantage of this and the reason is that they will not face numerous challenges relating to work and will even gain motivation knowing that they can easily pay rent in the houses introduced by Tiny House.

            Going through the product lifecycle of a product is instrumental for projection (Bao et al., 2018). The product lifecycle for these houses is around 50 years and this is where the tenants will be offered with strict rules on proper management of the property. Failure to follow these instructions then there is the repercussion of eviction. The houses are expected to stand for half a decade. After this period, serious renovations will take place. It is imperative to note that another aspect to relate with regard to these houses is that the management will offer a suggestion box where in case of any structural complains, they can drop them and masons will ensure they handle their responsibility effectively.

Marketing and Sales

            There are various means through which Tiny House project will get to the intended audience. One of the means through which this project will be advertised to the various potential clients is through publications in magazines. Magazine and reading publications are some of the means to capture the eye of older investors (Anuar et al., 2020).  There are numerous magazines that have specific focus on the construction industry. It is imperative to ensure that these magazines get wind of the Tiny House Project and by posting commercials in these avenues then it is possible to have potential investors coming in to add value to the project. The whole purpose of advertising is not only to get the tenants but also developers and investors that might improve the project.

            Another means through which the project can be promoted is through mainstream advertisement in cable networks. The best time to advertise through television is during prime time when people are at home from work. The various potential tenants and investors get to see features that are presented by the Tiny House Project. An additional feature to improve the advertisement and a sure way to get more clients is by having an architecture design a model for the complete work (Minar, 2016). Through presentation of the model, the viewers get an image of what to expect and thus book apartments and investors inject their cash in the project which is a positive aspect. Social media is another strategy where the project is outlined to various sites that have a huge flow of streaming potential clients.

            The sales strategy to incorporate is hiring the appropriate sales persona based on past experience and venturing in markets where the number of potential clients is high. A strategy that does not consider the experience of the sales person is ineffective (Chong et al., 2016). For example for this project, if the person presenting the advertisement is not charismatic and does not speak with a vocal attitude, then it is hard for the viewers to follow what he or she is saying and consequently ignore him and might even change the television channel. However, for a person that has experience and has pitched effectively before, then it is possible to get the potential clients. The outlined sales strategy is effective in such a situation.

Funding Request

            It is also important to review the funding request for a project and through this, there is vivid comprehension of whether the company can get the funding it requires or the entire process is going to flop (Stern et al., 2018). The first step that Tiny House Project will have is identifying itself to potential investors and specifically stating the industry where it operates. There are also unions where the company can identify itself and these include embassies and the United Nations Industrial Development Organization. The other step that is involved with the same is determining the feasibility of the project and this is where the institution shows its understanding of the market, revenue, competition and the costs.

            Identification of the sources of technology is imperative in funding planning in the contemporary business environment (McCarthy et al., 2017). The reason for the importance is the fact that the world is continuously evolving and consequently it is possible to note growth in information technology. Tiny House project managers are supposed to project their knowledge of technology to the various interested parties and have them paying attention to their vision. The final step involves a clear expression of what the company is prepared to do in case the project goes south. Many times, a project might fail to achieve the set objectives and the investors get dissatisfied. It is important to ensure that the project manager of Tiny House outlines the means through which risks can be identified and contained in the business environment.

Financial Projections

            It is also imperative to go through the financial projections for this particular project. The estimated amount for the one story house will be approximately $30,000 give or take. This is the current market value given the change in economic stature for the various people in the environment. For the two story house, the projected cost is about $50,000 per unit. It is imperative to note that this amount is favorable given the fact that a one story building is over half this price. It is also important to note that this does not end there because there are going to be about 100 units of each. When one carries out the arithmetic, it is possible to note that the estimated total amount for the one story house is $3 million.

Carrying out the same calculation one can note that the total amount for the two story building was $5 million. It is also vital to go through the expense of some other elements such as land. The business plans on taking up 12,000 acres of land and this will be at a cost of $950,000. For the labor, there will be different sets of activities. The major ones will include repointing which will be $8 per sq ft. Bowing that will be $23per sqft and brick installation at $25per sq ft. The clearing of land will be paid per hour at 20$ an hour for each worker. Installing the well, light pole and septic tank will come at a total of approximately $100,000.


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