STRATEGIC PLANNING FRAMEWORK FOR RESIDENTIAL CONSTRUCTION STARTUP COMPANIES.

Over 60% of all startup construction companies in the United States (US) failed within the first ten years. Startup owners experienced many difficulties in the residential construction industry, especially during a recession or pandemic. This paper investigated the strategic planning framework for successful construction startups in the US residential construction industry. The research objective focuses on the considerations and strategic planning before executing a startup business and their importance in becoming successful in the US residential construction industry. The strategic planning considerations typically include ultimate entry points, financial indicators and forecasting, and budgeting resources. The authors analyzed a large spectrum of quantitative data from various reliable sources. The key findings are that researching the market from a microeconomic and macroeconomic standpoint is essential to the business's success. In addition, analyzing quantitative data regarding financial forecasting and budgeting helps understand complexities in cash flow and financial risk. These factors play a considerable role in the success of a residential construction company. To succeed, business owners should pay attention to local markets, national markets, lending agreements, cash flow budgeting, and proper estimating tools. Lacking consideration of these variables may result in a high chance of failure instead of success. This research helps shed light on the strategic planning for startups to succeed in the residential construction industry. [ABSTRACT FROM AUTHOR]