Only around 50% of businesses survive for more than five years which proves what a big challenge it can be to run a small to medium-sized enterprise.

Many small companies make the mistake of going it alone. By doing so, they miss out on a valuable resource that can reduce costs, boost income and raise their profile.

Teaming up with other firms to share expenses can drastically reduce costs.

For small firms with limited resources, collaboration can make a real difference. Here's why you should consider teaming up with other companies.

Reduced overhead costs

Small business owners know only too well how much overheads can eat into revenue. Teaming up with other firms to share expenses can drastically reduce costs.

Automating routine business processes reduces the admin burden

You may be able to share office space and equipment or agree to sublet your premises. Other ways you can save are to bulk-order office supplies and share transport when travelling to trade shows or industry seminars.

Shared accounting and admin

For certain jobs such as bookkeeping and various admin duties, there may be no need to hire a full-time member of staff.

Instead, you can share accountants and HR professionals with another company. Automating routine business processes can also help.

Keep the workflow flowing

Collaboration with suppliers, vendors and other partners outside your own company is vital to ensure the smooth running of your operation.

They're all part of your "workflow", but you might only communicate with them via email, over the phone or in person. This can be disruptive to your flow.

Platforms such as Workplace enable seamless collaboration with other companies

Collaboration platforms can prevent this disruption and enable businesses to work more closely together. Using multi-company groups in Workplace, for example, allows people from two or more organisations to effectively collaborate on projects.

These groups are secure spaces to share documents, hold meetings and conduct the day-to-day running of your relationship. And all without interruptions to people's natural flow.

Gain knowledge and skills

Many small businesses have developed tools or skills that could benefit the productivity of others. One of the keys to growth is knowledge sharing.

Not only can you learn a huge amount from collaborating with other businesses, you'll have someone to turn to if you have a challenge to overcome.

One of the keys to growth is knowledge sharing

Why spend weeks procrastinating when you might be able to solve a crisis in a matter of minutes just by talking to someone in another company you trust?

Shared advertising and marketing

Small and medium-sized businesses usually have a limited network of customers and clients. By teaming up with other firms to promote each other's products and services through social media posts and blogs, you can increase your marketing reach.

You could also partner with other businesses to sponsor a local event to drive more online traffic or footfall your way.

Tap into new markets

If you want to broaden your horizons and offer your customers a more wide-ranging service, you may want to test the water before taking on a whole new team of people.

Joint business ventures can allow you to work with specialists

Joint business ventures can allow you to work with specialists in other areas. Like a team of web developers joining forces with a graphic design company.

These types of business collaboration allow you to take on bigger jobs such as applying for a public service contract or supplying services to a large corporate client.