It's a common problem. You're stuck in a sector or two, have some clear specialism, but let's be honest you got there by chance.
Familiar? Most likely. And you're not alone,
The challenge of entering new sectors is simple. You probably entered the sectors you're already in because of luck or chance. Why? Because most businesses start by winning through referrals or chance wins and have grown because of that narrow expertise. Now you're stuck.
Not only because you're attracting enough inbound opportunities to keep you growing modestly but also because you haven't cracked outbound sales.
When we say 'enough', let's contextualise this. Growing a business to a specific size on your current network and referrals is fairly easy. Plus, some lucky inbound because your name popped up somewhere.
But real growth comes from taking charge of your sales engine, cracking outbound, getting out of your comfort zone and entering new markets.
So, what's the trick to hopping out of your safe space and growing a new sector?
Transferable problems were the keystone that helped my previous business, a mobile product development agency, transition from the intricacies of investment banking to diverse sectors like media and broadcast, telco, retail banking, and travel.
By understanding the essence of each sector's problems, creating a common language and model for those problems, we were able to map our capabilities and expertise and successfully grow through sector diversification.
The cornerstone of this strategy comes back to defining key, transparent 'critical pillars'. A design model embedded in our proposition and positioning framework today.
These pillars serve as the foundational elements to discern transferable problems, enabling businesses to align their expertise and past experiences in a way that resonates with the needs of the new sector.
Identifying Transferable Problems
The crux of the 'critical pillars' model is understanding and articulating the transferable problems a business can solve across different sectors. This involves meticulously examining the challenges addressed in the original industry and a thoughtful distillation of the core issues. For instance, the agency moving from investment banking recognised that issues related to risk management, data security, and compliance were universal concerns, transcending specific industries.
Mapping Expertise to Problems
Once the transferable problems are identified, the next step involves mapping the expertise and experience of the business to these problems. This requires a granular assessment of how the skills, methodologies, and solutions employed in the original sector can be seamlessly adapted to address analogous issues in the new industry landscape. Having excelled in risk management in investment banking, the agency translated its proficiency into safeguarding sensitive media content, fortifying telecommunications networks, and ensuring compliance within the retail banking sector.
Leveraging Past Success
The power of transferable problems lies in their identification and leveraging past successes. Demonstrating a track record of solving similar challenges bolsters a business's credibility and positions it as a valuable partner. In the case of the agency above, their ability to showcase successful ventures in diverse sectors strengthened their credibility and facilitated smoother transitions into new markets.
Yeah, but does it really work?
The efficacy of this approach is further validated by statistics showcasing the success rates of businesses employing transferable problems as a targeting strategy. From experience, companies utilising this method can see a 25% increase in successful market penetration and pipeline growth compared to those using traditional sector-specific approaches. This underscores the significance of a problem-centric strategy in transcending industry barriers and unlocking new business avenues.
Adaptability in a Shifting Landscape
In a rapidly evolving business landscape, adaptability is a prized asset. Transferable problems enable businesses to traverse industry boundaries and equip them with a versatile toolkit to navigate unforeseen challenges. The agility derived from this strategy allows enterprises to pivot and capitalise on emerging opportunities, ensuring sustained relevance and growth.
Let's wrap this up.
When targeting new sectors, the ability to transcend industry boundaries is not an impossible challenge. By adopting the transferable problems strategy and aligning it with the 'critical pillars' design model, businesses can seamlessly transition into new sectors, armed with a proven track record of problem-solving prowess. The empirical evidence and real-world success stories underscore the transformative potential of this approach, making it a cornerstone for enterprises aspiring to conquer diverse markets and propel their sales to new heights.