De-risking an SME through a new local client pipeline

The challenge

The business in question needed to reduce its reliance on a narrow client base. While existing work remained strong, leaders recognised the commercial risk of depending too heavily on a small number of clients and larger, higher-risk projects. There was a clear requirement to diversify income streams, improve resilience, and create a more balanced pipeline of work.

At the same time, any expansion needed to be carefully structured. New activity had to support the wider business without adding unnecessary complexity or risk, and roles and responsibilities needed to be clearly defined from the outset.

The challenge was to de-risk the business by expanding its client base, while building something sustainable rather than opportunistic.

Key challenges included:

  • Heavy reliance on a limited number of clients
  • Commercial risk tied to larger, higher-value projects
  • A need to diversify income without overstretching the business
  • No existing structure for developing lower-risk, repeat local work
  • Clarity required around ownership, responsibility and delivery

The business needed a structured, long-term approach to new business development.

The approach

Work began with the creation of a clear business and marketing plan for a new local division.

The focus was on developing low-risk, repeat work by building relationships within the private sector locally. This allowed the business to target smaller, more predictable projects while strengthening its presence and reputation in the local market.

Roles and responsibilities within the new division were clearly defined, ensuring ownership of business development, marketing activity and relationship management. Activity was planned over the long term, recognising that trust and repeat work would take time to establish.

This phase focused on:

  • Defining the purpose and structure of a new local division
  • Building a business and marketing plan aligned to de-risking goals
  • Targeting private sector clients and lower-risk local projects
  • Creating clear ownership for business development activity
  • Supporting relationship-building through structured engagement

A combination of planned marketing and business development activity followed, including meet-the-buyer events, golf days and ongoing relationship management.

The outcome

Over a two-year period, the new division became established and embedded within the wider business.

Consistent focus on relationship-led development began to deliver results, with local companies returning for repeat projects. The division developed its own momentum, contributing predictable, lower-risk work alongside the organisation’s existing pipeline.

As a result:

  • The business reduced its reliance on a small number of clients
  • A new, structured division was successfully established
  • Repeat work was secured with local private sector clients
  • Business development activity became more consistent and focused

The organisation strengthened its commercial resilience while creating a more balanced and sustainable client base.

The impact

  • Reduced commercial risk through a broader client base
  • A new division delivering repeat, lower-risk local work
  • Key private sector client relationships established and retained
  • Large pipeline of new business opportunities created
  • Clear roles and responsibilities supporting long-term growth

By taking a structured, relationship-led approach to diversification, the business successfully de-risked its operations and created a stronger platform for continued stability and growth.