A homebuilder really has two separate businesses: the manufacture of the homes and the sales operation. We’ve covered 22 ways to plug up leaks in the sales bucket, but we can’t overlook the other side of the business—because while you’re busily fixing the holes on the sales end, your profits might be escaping through your manufacturing gaps. The following manufacturing gaps are sales related:
Standing inventory (see #19)
Change orders
Mistakes in the field
Giveaways and cave-ins
Punch
Managing expectations
Relationships versus accountability to vendors and subcontractors
Principle of 15 Minutes
BOTTOM LINE: Your business is comprised of two operations: manufacturing and sales. Be sure to fix the leaks on both sides.
