Partnerships and joint ventures are becoming the way for small businesses to move to the next level. As consolidation increasingly characterizes many industries, many smaller companies are riding upon the coattails of larger companies. Joining forces with a well-known company gives your business instant credibility and a great springboard from which to market.

Remember that partnerships often begin with personal relationships and move on from there. People want to do business with their friends and other individuals with whom they are comfortable ? gotta schmooze. But even with these personal relationships, you have to bring something to the table to make a partnership worthwhile. As an entrepreneur, you will often have to give up more than the larger company does in order to form a partnership with a better-known company. But it?s well worth the price to be able to associate your company with an industry leader.

As a start to forming partnerships, find businesses that complement yours and try and establish a working relationship with them. Frequent industry shows, schmoozy networking parties, and any other place you think will give you a chance to meet contacts. And build your circle -- find out who your friends can put you in touch with. Try to get to know these secondary contacts on a personal level before you jump into suggesting partnership ideas. Take them out to breakfast or lunch to discuss what?s going on with their business. Even if you are not able to form a partnership, this person may refer you to individuals who may want your product or service.

There are myriad ways to form fruitful partnerships. Try a dual promotion. Or offer their brochures in your stores. Put a link to their store on your web site. Even a small way of recognizing the other company will create the opportunity for bigger things down the road.