Running a small business doesn’t have to be a lonely road. Building a “power team”, a network of entrepreneurs offering complementary or even similar services, turns other business owners from perceived competition into a source of referrals, outsourced expertise and support.
What actually is a power team, and why bother building one?
A power team is a group of entrepreneurs who deliberately build relationships to support one another, rather than treating anyone offering a similar service as a threat. According to Noeleen Thompson, managing director of LinkedIn training provider LadyBugz, connecting with other business owners this way turns potential rivals into a solid network of outsourced solutions that no single founder could build alone.
How does collaboration actually generate new business in practice?
An architect who struggles to find new clients directly might team up with a property developer or general contractor instead, opening doors through word of mouth and credible referrals he wouldn’t otherwise have access to. The same logic applies to naturally complementary services: an image consultant and a hairdresser make a strong power team because a happy client of one is a highly likely prospect for the other, built on trust rather than a cold pitch.
Why shouldn’t small business owners try to do everything themselves?
No one can be a specialist in everything, and that’s precisely where a power team earns its value. Being part of a strong network gives small business owners access to talent and specialists they can select from as needed, outsourcing the work they’re not good at while still being seen by their own clients as someone who “gets it all done”, a discipline also covered in why the right people and partnerships matter so much for SME growth.
Where do you actually find these networking opportunities?
Organised networking groups exist across the country, many of them free to join, meeting regularly over lunch or breakfast specifically to let members educate each other about their products and services. The more you understand about another member’s business, the easier it becomes to send them a genuinely good referral, and the more specific you are about the type of client you want, the more relevant the referrals you receive in return.
What makes a referral within a power team actually effective?
Always have a clear, concise elevator pitch ready, one that describes your business briefly but gives enough detail to spark further interest. Consistency matters too: showing up regularly and being a genuinely reliable, accountable member of the group compounds over time, since credible referrals tend to flow toward the people who’ve already proven they can be trusted with one.
Frequently asked questions
Should I be worried about networking with businesses that offer a similar service to mine?
Not necessarily. A business offering a similar service can become a valuable referral partner rather than a competitor, especially when you focus on different niches or client types within the same broad category.
Do I have to pay to join a business networking group?
Many networking groups are free to join, though meals at regular meetups are typically covered by attendees themselves.
How do I make the most of a power team once I’ve joined one?
Be specific about what you offer and who you want as a client, actively give useful referrals to others, and keep your own elevator pitch sharp so members can refer you accurately.
Originally published in January 2019. Updated September 2026.
