How to Choose the Right Business Partners – The 3 Critical Stages

How to Choose the Right Business Partners – The 3 Critical Stages

In this chapter, let’s talk about business partners — how to find the right one, how to know if you're meant for a sole proprietorship or a partnership, and the lessons I learned from both my failures and success in choosing who to work with in business.

If you’ve been wondering whether you're better off doing business alone or teaming up with someone, this blog is for you.

My Journey from Solo to Strong Partnerships

If you’ve followed my story, you probably know that my first three businesses failed. The fourth one, KARCO, is the first one that really took off. And guess what? It’s also the business where I finally figured out the right way to build a partnership.

My first business, a CCTV company, was a solo effort. I learned the hard way that it’s very difficult to build and grow a business alone.

So, in my second business — a software development company — I partnered with friends from UP Diliman. We had technical skills, but still, the business didn’t work out.

Then in my third business, I partnered with my cousin and my then-girlfriend (now my wife). The idea was promising, but again, the business didn’t prosper.

But when I started KARCO, everything changed. My partners were my close friends — the same people I used to hang out with, drink with, and even go through emotional lows with after my business failures. I had no money, no investor trust, and no opportunities at that time. But I still had friends who believed in me — and that made all the difference.

The 3 Stages of Choosing Business Partners

Based on everything I’ve experienced, I believe there are three essential stages in choosing the right people to build a business with:

1. Finding

You’ll always start with potential partners — prospects. These are people you think might be a good fit someday. But remember: just because someone seems promising doesn’t mean they’re the right fit yet.

Finding is just the beginning. The real test is next.

2. Testing

Don’t commit right away. Don’t sign contracts. Just test the waters.

Start a small project together. Work on something real — no titles, no equity assignments yet. See how you function as a team. That’s exactly what we did in KARCO. We worked together for one full year before we signed anything.

We ran the business, earned money, and dealt with each other without any legal documents. That’s how deep our trust was — and it’s also how we discovered who truly contributed what.

During that time, partners came and went. We didn’t assign roles or ownership upfront. Everything was based on actual contribution, not assumptions.

If your group can’t work together for a year without legal security, that’s already a red flag. It means there's no trust — and without trust, the business will likely fail.

3. Betting

Once you’ve tested and proven that you work well as a team — it’s time to go all in.

This is the betting stage. Everyone needs to go full force — heart, soul, and commitment.

If you’re still keeping a job on the side or focusing on another project, you’re not betting fully. At this stage, your startup needs 100% of your brain and heart. Everyone must give it their all.

And when you do that — when you bet everything — whether you succeed or fail, you’ll have no regrets. Because you’ll know you gave it everything.

Final Thoughts: Trust, Test, Then Bet

Let’s recap the 3 stages:

  1. Finding – Identify who you think could be a future partner.

  2. Testing – Try working with them before committing. Collaborate on a project. Build trust first.

  3. Betting – When you’re sure, give everything you’ve got. Focus. Commit. Go all in.

I hope this helped you, Kasosyo. These stages can guide you in choosing the right people for your business journey. Don’t rush into partnerships. Build them with trust, action, and faith.

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