How do I hand my pizza shop to a partner who works the ovens?
Check that your oven partner can handle what the oven does not teach: ordering, payroll, cash flow and customer problems. Agree how they will pay, whether from savings, a loan or payments to you over time, and set the terms in writing. Then plan a handover period so suppliers and staff see the change coming.
Making the pizza is only one part of the business. Before talking terms, ask your partner to take over the back office for a while: food orders, the schedule, deposits and the monthly numbers. If they enjoy it, that is a good sign. If they avoid it, you will know what help they need.
The money is the next question. Equipment and stock have value, but a lender will want to see how the shop earns, so gather your records together. Ask whether the lender will treat the ovens as security, and whether a loan tied to cash flow could suit you both better than a lump sum.
If you accept payments over time, spell out what happens if a payment is late. Consider what you will do with the stock on hand on the day of the handover, and who pays for it. Finally, introduce your partner to suppliers and regular customers yourself. Both of you should take advice from your own lawyer and accountant before signing anything. Agree early on who keeps the recipes, the phone number and the social media accounts.
Key takeaways
- Have the oven partner run the back office before any terms are discussed.
- Settle how they will pay and how stock on the handover day is treated.
- Introduce them personally to suppliers and regulars, and get separate advice.
- Decide who keeps recipes, phone numbers and online accounts after the handover.
Related reading
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Succession
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat is succession planning?
- 04Business Development Bank of CanadaGovernmentAdvice for succession planning - Articles and tools
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