In the homebuilding industry, there is an unfortunate phenomenon in the 4th quarter. It is an intense time when up to 60% of units are closed in just a few months. Partners are pushed to their limits, employees work long hours, and your entire team goes into the holidays drained.
At Continuum Advisory Group, we call this phenomenon the 4th Quarter Fire Drill. It is a natural consequence of bad habits. Like any bad habits, these can be unlearned and prevented.
In Video 1 of 3, Continuum Advisory Group Principal Clark Ellis discusses how communication is the name of the game here, and in a business with so many stakeholders it’s especially important.
A notable example of this is production capacity early in the year. Cold, dreary late winter is a time often marked by less orders. As a result, you may have slack in your production capacity. You can leverage this for spec starts, which gets inventory on the ground for later in the year.