The aim of this study is to understand how co-branding can be strategically implemented and its relevance in small business customer relationships. The study serves as a guide for small businesses striving to strengthen their brand and improve their customer relationships through strategic utilization of co-branding. By enhancing knowledge about co-branding as a strategy, businesses can identify opportunities and challenges of successfully implementing the strategy in their operations. The theoretical foundations of the study include areas of brand equity, co-branding and relationship marketing. Using a qualitative method and across-sectional study design, we conducted semi-structured interviews with five companies and seven consumers to obtain multiple valuable perspectives and viewpoints on the research topic. Based on the empirical research, the findings indicate that consumers value quality, company values, long-term relationships, personalized offers, and trust in brands. Consumers also view brand collaborations positively but emphasize the importance of clear objectives and beneficial partnerships. The companies reported that collaborations can provide broader reach, expand the target audience, increase market share and sales, and facilitate insights sharing and trust building. The prospects for successful collaborations highlights long-term commitment and strong relationships as key components for successful partnerships. Based on the previous mentioned information and the study’s results, the conclusion is that the establishment and management of brand equity play a central role in creating a stable customer base, requiring strategic implementation of the brand process early on to effectively communicate the brand and its identity. Small businesses have several advantages that gives them opportunities to implement co-branding as a strategy, where they can contribute with significant resources to other larger businesses with an interest in exchange through exposure. In relation to their customers, the importance of quality, long-term commitment, trust and strong values is emphasized as factors that need to remain stable in the implementation of a co-branding strategy.