Start A Tiny House Building Business - Business Ideas

Start A Tiny House Building Business - Business Ideas
Start A Tiny House Building Business

People love living in small spaces. They're affordable and easy to maintain. Starting a tiny house-building business is a great way to help people and make money. You need to be licensed and insured to work in the state you live in, and you will also need a business license. Additionally, you will also have to research how much it costs to build a tiny house as well as what materials are needed for the project.

Tiny houses are becoming increasingly popular, offering a unique opportunity for you to get involved in the construction industry. The tiny homes industry is expected to grow to 3.57B by 2026.

Starting a tiny house building business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tiny houses, or selling tiny houses online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a tiny house building business ➜

Key Stats

revenue (monthly)
$295K
starting costs
$29.7K
gross margin
6%
avg product price
$45000
time to build
360 days
growth
Publicity stunts
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $63 $200
Inventory Expenses $350 $14,750
Specific Industry Expenses $500 $4,000
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,300
Total Startup Costs $7,049 $59,311

Successful Businesses

Business URL Rank
Tiny House Talk tinyhousetalk.com #73,069
Tiny House Listings tinyhouselistings.com #91,482
COOL Houseplans coolhouseplans.com #163,737
Customized House Plans Online dfdhouseplans.com #164,753
Boxabl boxabl.com #212,028
Tiny House Blog tinyhouseblog.com #294,066
Tumbleweed Houses tumbleweedhouses.com #307,066
Incredible Tiny Homes incredibletinyhomes.com #442,916
Tiny Heirloom tinyheirloom.com #487,436
escape escapetraveler.net #557,620
Commercial Property For Sale By Owner buildingsbyowner.com #572,636

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a tiny house building business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Control of workload With starting a tiny house building business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Unlimited income potential With starting a tiny house building business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A tiny house building business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your tiny house building business are typically around 6%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the tiny house building business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
High overhead expenses With starting a tiny house building business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜

Pat Walls,  Founder of Starter Story
Want to find more ideas that make money?

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