TQM principles as continuous improvement, focus on quality of entire organisation have become integrated part of business strategy of many prospering companies. TQM is suitable and beneficial for SME providing IT services on the other hand TQM implementation is demanding process on both human and financial resources that may negatively influence functioning and the Cash flow of SME. Well done implemented TQM secures increase of competitive advantage. Nevertheless the implementation is not without risk of failure. The main risks of TQM implementation identification and incorporation the effort to achieve higher customer’s satisfaction with lower amount of resources into entire organisation will produce overall success of SME. Why implement TQM into SME providing services and how to avoid the failure of TQM implementation explains this work.