Entering new sectors is essential for growth and resilience, if growth is not going to be achieved by geographical expansion or acquisition of additional clients in sectors which a business already operates. However, diversification requires careful planning, strategic decisions, and the collaboration of multiple roles within the business. The following steps will be required from identifying new sectors to operate in, to winning the first tender in a new sector. In a large business the process is carried out by many different people, but in an SME some elements may need to be outsourced as it involves many skills and is time consuming. By reference to the roles in a large business a SME will be able to see what skills they will need to buy in.  

1. Market Research and Feasibility Studies 

The journey towards entering a new sector begins with thorough market research. Led by the Managing Director (MD) or CEO, this stage involves analysing market trends, client demands, and competitor activity in potential new sectors. The Business Development Manager or external consultants may use tools like PEST and SWOT analysis to assess risks and opportunities in the various sectors. Conducting feasibility studies helps determine whether the company’s existing skills, resources, and accreditations align with the requirements of the new sector. 

2. Strategic Decision Making 

After identifying viable sectors, the Board of Directors or senior leadership team must make the final decision on whether to enter a sector. They assess factors such as alignment with the company’s strengths, potential return on investment, and long-term strategic goals. The Financial Director (FD) plays a crucial role at this stage by evaluating the costs involved, potential profit margins, and any necessary capital expenditure on new equipment, certifications, or training programs. 

3. Skills Assessment and Training 

Entering a new sector may require developing new skills within the workforce and suppliers. The Operations Director, Human Resources (HR) Manager and supply chain managers / commercial manager collaborate to conduct a skills gap analysis. This analysis helps determine whether the current team & suppliers have the expertise to meet the demands of the new sector or whether new talent needs to be hired. The senior team will coordinate appropriate training programs, gain appropriate certifications, hire new recruits and identify any new supply chain partners. 

4. Marketing and Networking 

Once the decision to operate in a new sector is made, marketing becomes essential for raising awareness of the business’s new capabilities. The Marketing Manager will spearhead the creation of both physical and digital marketing collateral, ensuring that the company’s expanded services are effectively communicated to potential clients. 

5. Physical Marketing Collateral 

Printed brochures, flyers, and business cards are still tools to use, especially at industry events and networking functions. The Marketing Manager and Business Development Manager are responsible for designing and updating this collateral to reflect the company’s diversification. Brochures may highlight past projects, new sector expertise, and the company's commitment to quality and innovation. 

6. Digital Marketing and Social Media 

In today’s market, an online presence is just as important as physical marketing materials. The Digital Marketing Specialist works on updating the company’s website to showcase new services and case studies as they become available. Social media platforms like LinkedIn are powerful tools for reaching new audiences. Social media campaigns can be used to share news about the company’s recruitment of specialists in the diversified field, project updates as they occur, and industry insights. Regular posts about project milestones, sustainability initiatives, and client testimonials can help build credibility and trust in new sectors. The Marketing Manager will oversee content creation, ensuring alignment with the company’s brand and goals. 

7. Identifying Leads Using Lead Generators 

Finding potential projects in new sectors requires a proactive approach. The Business Development Manager can use lead generation platforms like Glenigan, Barbour ABI, or Builders Conference to identify upcoming tenders and key decision-makers. These platforms allow the team to track projects in sectors the company is targeting, providing early access to tender opportunities or at least understand who the active players are in the market. 

8. Building Trust with Clients and Advisors 

Gaining a place on tender lists requires more than just submitting marketing collateral —it involves building strong relationships with clients and their advisors, including architects, engineers, and quantity surveyors. The business development manager is instrumental in this process. They arrange meetings with key stakeholders to introduce the company, present its portfolio, and demonstrate expertise in delivering high-quality, timely projects. This can also include participating in pre-tender consultations and networking events to establish trust and credibility. Client testimonials, case studies and relevant accreditation credentials prepared by the marketing team, showcased on both physical brochures and digital platforms, will reinforce the company’s ability to deliver in new sectors. 

9. Tendering and Bidding 

Once relationships are established and the first tender arrives, the Commercial Manager and Estimating Team start completing tender opportunities in the new sector. They work closely with the Bid Manager, or a bid writer, to tailor tender documents to showcase the company’s strengths, emphasizing the relevance of past projects and their capacity to adapt to new requirements. Submitting, or uploading to a tender portal, an easy to read competitive bid is the responsibility of a submissions co-ordinator. The bids should highlight cost-effective solutions, sustainability initiatives, and adherence to sector-specific regulations to secure the first contract. 

10. Project Execution and Feedback 

After securing a tender, the Project Manager and Site Managers take responsibility for executing the project. Successfully delivering the first project in a new sector will not only enhance the company’s reputation but also increase the likelihood of securing repeat business and referrals. Images during construction and post-project feedback from clients and their advisors is invaluable for showcasing capabilities. The advisors ideally, become advocates of the business, who the business development manager will introduce to potential new clients when establishing trust, before a client decides to offer a tender to price. 

If you would like help with preparing an implementation plan to grow your business and start working in a sector you have identified, then please contact me. Peter.Searle@ba4cs.co.uk