Forever Tiny Homes
“The SBDC has helped us from the very beginning and through the ups and downs of the last few years. We love having the ability to call when we need help and [they are] always ready to assist.”
SBDC helped stabilize a popular tiny home manufacturer’s funding during the pandemic, giving confidence to their customers and allowing them to continue operating.
Challenge
Arlin Mendoza and Dominic Velazquez are the owners of Liberty Cabins doing business as Forever Tiny Homes. They are a well-established tiny house manufacturer with an enthusiast following. At their facility in Anderson they could work on two tiny homes at once and were able to establish themselves with some limited, sporadic sales. Wanting to expand their work space and meet market demands, they reached out to the SBDC for guidance. Soon after, when the pandemic hit, they sought additional assistance in navigating the downturn in sales and applications for disaster loan funding.
Gameplan
Arlin and Dominc discussed and planned for expansion with their SBDC business advisor noting the expected reduction in costs due to economies of scale. By following their plan, they gained a foothold in the marketplace and moved into a much larger, 40,000 sq ft facility in nearby Cottonwood which would allow them to increase their volume. At this facility, they would be able to simultaneously construct six to eight homes. They were in the midst of the move in March when the pandemic hit. Their sales dropped and prospective clients became uncertain about whether the company would be able to continue. Quickly, the SBDC helped them apply for disaster funding.
Results
Prior to the pandemic and with the SBDC by their side, Arlin and Dominc realized steady growth and saw their annual sales increase by $80,000. The initial downturn of sales brought on by the pandemic was stabilized by a $42,000 SBA EIDL loan which, coupled with their own $15,000 investment, allowed them to continue to operate. They regained the confidence of their customers and subsequently received new orders. They hired additional help and sales are now on a sharp, upward trend.
