Tumbleweed Tiny Houses

“The Profit” is back for season 5! This week, Marcus Lemonis visits Colorado Springs, Colorado to help Tumbleweed Tiny Houses, a tiny homes manufacturer that makes customized tiny homes, RVs, hotels and more. According to CNBC, owner Steve Weissmann “lacks the leadership skills needed and has put the business in over a million dollars of debt.” If Lemonis cannot build a solid foundation, the entire business could crumble.

Visiting their main office, Lemonis is immediately concerned over the months-long backlog the company is experiencing. But he loves the craftsmanship and quality of the tiny homes. Lemonis is also worried that Weissmann doesn’t seem to have done all that much research in regards to his company. The customized manufacturing process also slows down the building of the homes. After meeting Lee, the COO, and Tracy, the director of sales, Lemonis also expresses concerns over the team structure and sales process. He notices that the “nuances” are severely slowing down their production.

After reviewing their financials, which include a lot of debt and money that Weissmann took out of the business (causing Lemonis to accuse him of running a “smoke and mirrors” business), Lemonis offers $3 million as a loan to clean up the finances with 75 percent equity. He also wants to improve the process and business model, which involves setting a limit on the number of models and customizations.

Then, Lemonis spends the night in a tiny home to see how the units can be improved. He thinks the space could be better utilized and practical additions, like charging stations, could be incorporated into the design. He likes the “homey” feel and pitch of the roof, but tells Weissmann that the design definitely needs to be changed. He worries that Weissman simply doesn’t care and he adds that he needs to be more committed and better serve the business.

In an effort to improve production manager Austin’s leadership skills, Lemonis then invites customers to provide feedback. he thinks the homes need more storage space and more integrated furniture options. Austin confronts Weissmann about the new COO and explains that the multiple layers of management need to be adjusted. He wants to know that Weissmann will take action in response to his concerns. Ultimately, however, Austin quits after they failed to properly address the issue. Lemonis quickly re-hires him, but acknowledges that the layers still need to be changed.

At a local manufacturing company, Lemonis then sets up a new space for trailer production, which will help the Tumblewood team finish the existing models and start production on the new ones. Lemonis then learns that several employees left, including Lee. Weissmann acknowledges that bringing Austin back was the right move.

The team then reviews the new standard units, which feature a utility closet. Lemonis proposes bringing one of the standard units to a national account that could buy homes on a regular basis. His original timeframe of two and a half weeks is turned down by Weissman and they both agree to push it back by another week so that the pressure on employees is lessened. Lemonis is happy that communication, respect and the layers of management have greatly improved.

Previewing the new standard unit, which costs $79,000, the potential national account likes the brightness and furniture, but worries that the pitch of the roof is a bit low. They question whether that could be changed, which Weissmann declines due to the new standardization process. The buyer ultimately agrees to a deal.

At the end of the day, the team is very impressed by the changes and commends Weissman’s commitment. Lemonis also shares that Austin and Tracy will be made partners in the business. He says he is “excited” over his investment in Tumbleweed, which he envisions “has a very bright future.”

See how social media reacted to Tumbleweed Tiny Houses on “The Profit” below:

Social Media Reacts to Tumbleweed Tiny Houses’ Appearance on “The Profit”

“The Profit” airs every Tuesday at 10 p.m. on CNBC.

What were your thoughts on Tumbleweed Tiny Houses’ process and layers of management? How do you feel about the changes that were made to the company? Do you think Marcus Lemonis made the right decision to invest in the business? Sound off in the comments section below!