Buffalo’s (New York) TimberHut Cabin Co. is expanding into two new markets: ice cream shops and camping companies.
According to a report, the campground industry is growing rapidly, gaining ground with private equity investors creating advanced business models. One of these solutions is modular cabins rented out at a premium and provide tax advantages since they’re not permanent parts of the property.
Brooks Anderson, TimberHut’s owner, said that his company is ready to start making prototypes for camping businesses that could lead to large orders.
The company has also entered into a memorandum of understanding with Mille’s Homemade, a Pittsburgh maker of artisanal ice cream seeking to establish franchises. As opposed to standalone shops, TimberHut will construct modular, seasonal shacks that will be available to franchisees.
“These are going to be nicely appointed, highly stylized, branded structures that are functional as vendor kiosks,” Anderson said.
Anderson moved his business’s headquarters to Great Valley in Cattaraugus County (New York) last year, where his 15,000 square-foot facility can manage several manufacturing lines. Moreover, TimberHut has raised private investments “in the six figures” this year, with the contributions of angel investor Jack Greco.
Anderson stated that a larger financing round could be required if TimberHut does not take advantage of its current opportunities.
The business-to-business nature of the contracts implies that Anderson can concentrate on corporate accounts instead of the constant interest he would require from a consumer-based business.
“We see really deep, deep markets here, and we have an opportunity to jump on them,” he said. “We were a startup 18 months ago, and now things are coming at us really fast. We need to be ready to capitalize.”
TimberHut is the 12th local startup company to announce a growth-oriented capital raising this year.