How Can Tiny Be Big?

Ryan and I were both shopping at an auto parts store and struck up a conversation that has led to this story. Ryan Donato, in partnership with his cousin Jeremy Killian—both 34 years old, own a manufacturing facility. It has been in production for one year and seen amazing growth with expected sales of $1 million. Their stated goal is $20 million in five years; and based on this dynamic duo they are probably understating this expectation. What is their product? Tiny houses. Thus the name of their business: Tiny Innovations.

How did you get started in your business?

For eight years we built custom homes in Lake Oswego and Portland area. We both have a real passion for building. The city grew and there was a huge demand for housing but very low inventory. It is also difficult to find buildable lots and in some cases existing houses are removed in order to build newer and more updated homes. For three years we had record sales. We spent much of our time waiting between projects and we thought there has got to be a better way to provide housing.

What did you want to provide to the public?

Essentially one-stop shopping for the newest innovation: tiny houses. We can design, engineering, manufacture, deliver, and, if necessary, install our houses at (our customer’s) location. We refer to it as a sustainable business plan. This process where we do the entire project in-house eliminates many of the problems of having engineering and design farmed out. Control of the project is critical and essential for quality results.

What type of products do you build?

We can use cargo containers to create mobile office facilities at a great saving to the contractors. Our pre-fab modular units can be used in warehouses for office space where none exists and very quickly installed. It requires a one-day setup. We also build tiny houses that range in price from $40-150k that go from 150-400 square feet. We are currently doing a commercial build that we hope will draw others to innovate with their brands. We have had solid enquiries from two other fortune five hundred companies and we are currently building a project they will exceed $320k when completed. Its size will be 28×8 feet with first class materials throughout including a copper roof.

We are also looking at producing projects for luxury camping. Keep in mind these are self-contained units that can be moved from one site to another. They have a wind resistance of 200 mph and are bolted at 40 tension points and can withstand a category 4 hurricane.

What is the advantage of having these houses on your property?

First, you don’t pay property taxes on the building as long as the wheels are attached and you haven’t set it on a permanent foundation. Second is the speed of setup and the elimination of permits and reviews as long as the building is in the correct zone. Zoning is different for each city and county and there is no uniformity. However, cities are recognizing the need for affordable housing and meeting current and expected demands. We are working with the City of Portland to allow this type of housing.

What are your expansion plans looking like in the immediate future?

Business is booming and we are quickly growing out of our facilities and plan on adding 17,000 square feet of manufacturing in the very near future. We currently have 13 employees but our expectation is to have 100-150 employees in five years.

Where do your component parts come from?

At every phase of construction, we make a concerted effort to buy from local providers. Many of our products come from less than five miles from our plant.

What is your background?

Ryan and I both came from dysfunctional families that involved drug use by parents. In a word, we were very poor and didn’t have good examples to draw from. We both have come light years from the background to what we are doing and have become.

These two will be exciting to watch as they expand their product line and production. Tiny Innovations can be found at 21948 N.E. Glisan Street, Gresham, Oregon 97030, 1-866-468-8469.