Tumbleweed Tiny House Company

In: Business and Management

Submitted By booklover
Words 410
Pages 2
Case 5.2 – Tumbleweed Tiny House Company

1. Do you think Shafer’s plan to grow his small business slowly is a good idea? Why or why not?
Yes, I believe that it is a good idea that he plants to grow his small business slowly. It allows him time to work out any kinks. He can also build better relationships with his customers and employees by starting out small and slowly working towards bigger. Shafer also doesn’t need anyone else’s permission to adapt to change. If he wants to change something in the design of the homes, he doesn’t have to go through a whole group of people to have it approved.
2. What economic and social factors seem to have aided Tumbleweed’s success so far? Which potential business challenges should Shafer consider as he plans for the future?
One of the economic factors that have aided Tumbleweed’s success is the slowdown in the American economy in the last several years. With people making less money, there is a need for low-cost housing. Thus the more homes that are required, it provides more new jobs to the economy. The cost of renting an apartment versus owning a tiny home is huge. People would actually own home and could set it up virtually anywhere. It would also provide environmentally friendly homes to society.
As Shafer plans for the future, he should consider the risk of failure due to the economy. He needs to take into consideration where the financial resources of the business will come from. Can the company handle another recession? Another potential challenge would be limited ability to raise capital. However, if Shafer has some associates who are interested in investing, he should consider that in his business plan. With the right plan and financial support there is a chance that the business will grow.
3. Do you think a company like Tumbleweed could go global? Why or why not?
Yes, I do believe with the right plan and…...

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