Imagine a diagram that looks somewhat like this one, only the word “Projected” would go on top of this split personality figure, and the word “Actual” would appear at the bottom. On one side are the factors within a home building company management’s control. On the other, externalities, or forces that lie outside any individual’s influence. Welcome to big builder 2014 budget planning, which we’ll call the year of “being better or else.” Are you projecting a 25% increase in sales, with profitability to match, as some home builders are? Or, given the current slowdown, are you paring back your projections? This morning, BIG BUILDER will explore the alternative scenarios from reports around the landscape.
Also, check out our top-10 glossary of most common four-letter words used in the budget planning process.