Partnerships: The Key to SME Success?

The Challenge: Growth vs. Capacity

Like any ambitious small to medium-sized businesses (SME) leader, I want it all, I want it all, I want it all, and I want it now! Not my words, the words of Brian May & Freddie Mercury but it’s often an ambition for small business leaders that want to grow. SMEs often start by taking on any work they can get, but as demand increases, they face two key challenges:

1. Scaling Quickly Enough – Hiring and training takes time, and rapid expansion can lead to inefficiencies.
2. Competence Gaps – No single SME can be an expert in everything, leading to potential delivery risks.

The Solution: Leveraging Partnerships

Many years ago, I learnt that I wasn’t the best at most things, and there were many people that were a lot better at these things than me. So, why would I do them unless I had a real desire to improve in these areas? Now that I have turned 50, my dreams of playing football have turned to questions of when I might consider progressing to walking football. But I am a leader when it comes to securing football tickets and organising trips to sporting events, and I can guarantee that success doesn’t come from just showing up – it’s about having clear objectives, good planning, and some great people around you to share it with.

Instead of struggling to do it all, SMEs can share work across their networks to maintain customer satisfaction and business integrity. Here’s how:

1. Strategic Alliances for Specialisation

• SMEs should identify complementary partners who excel in areas they lack expertise in. Yes, the matchmaking process takes time as well, but you tend to get out of life what you put into it, and having a delivery and support network of people and organisations that share your values and in whom you trust means you can have confidence that they will achieve goals in line with your own. For example, with changes to Microsoft eligibility thresholds imminent, this may impact on the way you currently operate customer licensing.
• For example: A Dynamics 365 consultancy specialising in Field Service might partner with a Power Platform specialist to offer a broader service without overstretching internal resources.

2. Transparent Collaboration Models

• There are some boring bits that need to be sorted though. You know, contracts, non-disclosure agreements, and all that kind of stuff that protects your business interests. You also need to define clear partnership agreements that have clear objectives, outline responsibilities, revenue-sharing, and customer ownership.
• Consider the use of joint branding as well, where appropriate, to maintain trust and consistency with your customer base.

3. Customer-Centric Approach

• Instead of saying “we can’t do this,” or ploughing on regardless, SMEs should position partnerships as a value-add. You are getting the best resources to deliver supreme outcomes.
• For example, say: “We work with trusted partners to ensure you get the best expertise for every aspect of your project.” Make it easy for your customers to do business with you, and you’d much rather be owning the relationship, rather than another partner, likely a bigger one, “offering to help”.

4. Technology-Enabled Partner Networks

• Platforms like Dynamics 365 can help SMEs track projects, share insights, and manage joint workflows.
• Automated referral systems can streamline collaboration without friction.

5. Case Studies & Success Stories

• Highlight real-world examples of SMEs that thrived through partnerships. You will have worked with other partners at some point in your journey, use learnings from that experience to your advantage.
• For example: If you are a managed IT service provider, could you scale by partnering with cybersecurity firms instead of acquiring one, or building an internal security team?

Final Thoughts

SMEs don’t have to do everything alone—by leveraging partnerships, they can scale sustainably, maintain customer satisfaction, and build long-term trust.

Collaborating with Microsoft, industry leaders, or aligned SMEs enhances credibility and access to bigger deals. SMEs must use existing successes, demonstrated via case studies and tender wins, to strengthen external relationships.

Some businesses will have all this in place, and more – Queen wanted it all, but did they get it? If you’re not partnering and unsure where to start and feel Under Pressure then Don’t Stop Me Now, get in touch and learnleadgrow can help to reduce your delivery risk and increase your efficiency. The Show Must Go On!