Your business survives or thrives on the type of work you secure. Understanding how your portfolio of work will perform in the future is fundamental to the future success of your business. And in uncertain economic times — such as a recession — getting a clear-eyed view of your pipeline becomes even more critical.
Start with Environmental Scanning
The first step is to take stock of what is happening in the wider world. Sorting what you surface into issues which are driven by Politics, Economics, Social activity, and Technological changes (PEST) will help to surface even more considerations of how the future will look. From the main drivers you will be able to decide which business sectors or activities are likely to be in decline or a growth phase in the future.
Assess Your Existing Portfolio
Identifying trends is a useful starting point — you can then take stock of your existing client base and decide which clients are likely to have more, or less, work going forward. The obvious choice is to back those who will benefit from market conditions, and steer clear of those who will suffer.
Assign probabilities to your pipeline — say 90% for work that would be a surprise if it did not occur, and lower percentages for work at higher risk of not proceeding. This gives a more realistic prediction of turnover from which suitable resources can be assigned.
Find New Clients and Expand Existing Relationships
Approaching existing clients to have a discussion about the future should be relatively easy if relations are good. Find out their needs and see if it fits with services you offer that they were not aware you delivered.
Finding new clients who require services you already provide to others takes some research. For companies in the construction sector, a good place to start is by searching lead databases provided by the likes of Builders Conference, Glenigan, Barbour-ABI or Planning Pipe, to ascertain who the key players are in the target segment. On average it takes 6 or 7 touch points to make contact, so utilise several channels and be persistent.
Use a CRM and Stay Selective
With so many touch points to manage, a CRM piece of software will help keep track of who is speaking to whom. A fortnightly review of actions keeps things moving along and aims to develop relationships with those issuing tenders, so you are on future tender lists for work that most closely matches your expertise.
Be selective about who you approach. Consider their ability to pay on time, their approach to business, and their future aspirations. Have a clear Bid-No-Bid strategy — but do not be so rigid that you end up with all eggs in one basket. Being reliant on one good client is very risky; aim for no client to represent more than 15% of income.
