When owners think about retirement, they usually focus on the life they want or where they want the business to be. They rarely think about who will be in charge when they are gone. Having a succession plan and working backward from it is one of the best ways to clarify direction and set firm timelines for goals.
In episode 67 of Maximum Octane, Kim Hickey talks with Eric Goodnoe, president of M&D Auto & Body Repair in Haslett, Michigan. When his father, the company’s founder, retired, Eric used the succession as an opportunity to redefine personal and professional milestones. He shares the transition from second in command to president, why he chose to expand, and his own 15 year retirement plan.
What You Will Learn
- A bit about Eric’s succession and business expansion plan
- How it was for Eric to transition from 2nd in command to lead the business
- The benefits of implementing open-doors policies
- Eric’s 15 years retirement plan
- What does succession look like in your business?
Succession and Expansion
Eric opens with his succession and business expansion plan. Rather than simply maintaining what his father built, he saw the transition as a chance to grow. Many family businesses struggle after a handoff because the next generation feels pressure to keep everything the same. Eric’s approach shows that succession can be a launch point.
ATI’s Succession Planning Blueprint offers a framework for owners preparing for a transition.
Leadership transitions can be a natural moment to rethink strategy. A new leader brings fresh energy and perspective, which can open opportunities the previous leader did not pursue. At the same time, the new leader must respect the culture and relationships that made the business successful. Balancing continuity with change is one of the biggest challenges of succession, and Eric’s decision to expand shows how a transition can become a growth opportunity.
Expansion during a transition requires careful planning. The new leader must establish credibility with employees and customers while also managing the demands of growth.
For a successor, early wins matter. Employees and long-time customers are watching to see whether the business will feel different, and not always in a good way. Keeping the things people value, such as the shop’s reputation for honesty or the way regulars are greeted, while making visible improvements in areas that clearly need attention, helps build confidence. Expansion plans land better when the team understands the reasoning and sees how growth creates opportunity for them, such as new leadership roles, better equipment, or more stable work.
From Second in Command to President
Around the 11 minute mark, Eric describes what it was like to move from second in command to leading the business. As second in command, he executed decisions. As president, he makes them and lives with the consequences. That shift requires confidence, support, and a clear understanding of the role. He also discusses whom he trusted to take his former place and why.
ATI’s The Surprising Secrets of Moving From Manager to Owner explores this transition.
Moving from second in command to the top role changes relationships with coworkers. Former peers become direct reports, and the new leader must establish authority while maintaining trust. Clear communication about the transition, consistent behavior, and fair treatment help ease that shift. Seeking advice from mentors who have made similar transitions can also help new leaders navigate the challenges.
The new leader also faces the challenge of making decisions independently. As second in command, there was always someone else with the final say. As president, the responsibility rests with them.
One of the hardest adjustments is letting go of the work that made the person successful in the first place. A second in command who excelled at running the floor may be tempted to keep doing it, leaving the president’s responsibilities, such as long-range planning, financial oversight, and leadership development, without enough attention. Choosing a strong replacement for the former role, and then trusting that person to handle it, frees the new leader to focus on the job only they can do. It also gives the replacement room to grow into the position.
The Benefits of an Open Door Policy
Eric explains the benefits of an open door policy. During a leadership change, employees often feel uncertain. Being accessible and willing to listen builds trust and helps the team adjust. It also gives the new leader valuable insight into what is working and what is not.
An open door policy works only when employees believe it is real. That means leaders must respond to concerns respectfully, avoid punishing people for raising issues, and follow up on what they hear. When employees see that speaking up leads to positive change, they continue to share ideas and concerns. That flow of information helps leaders spot problems early and make better decisions.
On the shop floor, an open door policy often looks less like an office and more like availability. Leaders who walk the bays, stop by the front counter, and ask how things are going tend to hear far more than those who wait for people to come to them. Regular one-on-one meetings provide a structured version of the same thing. During a leadership transition especially, employees may hesitate to bring concerns to a new president, so actively inviting conversation and responding to what is shared helps establish that the door is genuinely open.
Eric’s 15 Year Retirement Plan
Around the 18 minute mark, Eric shares his own 15 year retirement plan. Having lived through a succession, he understands the value of planning far in advance. A long timeline allows for developing future leaders, building financial security, and making the business attractive to a successor or buyer.
Jim Groves makes the case for early retirement planning in Retirement in the Mirror May Be Closer Than It Appears.
A long-term retirement plan provides direction for many decisions. It influences how the leader develops future leaders, invests in the business, manages debt, and builds personal savings. Having a target date also creates urgency for tasks that might otherwise be postponed, such as documenting systems and identifying a successor.
A long timeline also allows an owner to work backward and set milestones. If the goal is to step away in fifteen years, the owner might decide when a successor should be identified, when that person should begin running daily operations, when financial records and systems should be fully documented, and when ownership transfer conversations should begin. Each milestone becomes a near-term goal with a date attached. Reviewing progress against those milestones every year keeps the plan from sitting in a drawer and gives the owner time to adjust if circumstances change.
What Does Succession Look Like in Your Business?
Eric closes by asking listeners what succession looks like in their own business. Many owners have never answered that question. Options include passing the business to family, selling to a key employee, selling to an outside buyer, or exploring employee ownership. The National Center for Employee Ownership explains employee ownership structures for owners considering that route.
Each succession path has its own considerations. Family succession involves balancing family relationships with business needs. Selling to employees may require financing arrangements or gradual ownership transfers. Selling to an outside buyer requires preparing the business for due diligence and negotiating terms. Employee ownership structures, like ESOPs, have specific legal and financial requirements. Exploring these options early gives owners time to prepare for the one that fits best.
Answering this question honestly can be uncomfortable. Some owners discover that no one on the team is currently prepared to lead, or that family members are not interested in taking over. Others realize the business depends so heavily on them personally that it would be difficult to sell. These are not reasons to avoid the question. They are exactly why asking it early matters, because each gap can be addressed with enough time, whether by developing a leader, building systems, or strengthening the financial picture.
Preparing the Business for a Successor
A business that runs smoothly without the owner is easier to hand off, whether to family, employees, or an outside buyer. Documenting key processes, from how work flows through the shop to how payroll and vendor payments are handled, reduces the risk that critical knowledge leaves with the owner. Clean, accurate financial records make it easier to value the business and arrange financing.
Developing leaders at several levels also helps. When a service manager, lead technician, and office manager each own their areas, a successor inherits a functioning team rather than a set of problems. Customer relationships should also be spread across the team so loyalty attaches to the shop, not just the owner. Each of these steps improves the business today while preparing it for tomorrow.
Common Succession Mistakes
Succession planning often fails because owners wait too long, choose a successor based on relationship rather than readiness, or fail to communicate plans with employees and family. Other common mistakes include not separating ownership transfer from leadership transfer, underestimating the time needed to train a successor, and neglecting the financial details of the transition.
Avoiding these mistakes requires starting early, involving advisors such as attorneys, accountants, and coaches, and treating succession as a multi-year process rather than a single event. Eric’s experience, both as a successor and as a leader planning his own future, shows how thoughtful planning can turn succession into an opportunity for renewal and growth.
ATI’s How to Hire the Right Second-in-Command offers guidance for owners preparing future leaders.
Succession Questions to Answer Now
- Who could lead your business if you stepped away tomorrow?
- What would that person need to learn over the next five years?
- When do you want to retire, and what does the business need to look like by then?
- Have you discussed your plans with family, key employees, and advisors?
For more on succession, listen to The Succession Shift and the Garlock family in 90% of Third-Gen Businesses Fail. Here’s How You Won’t.
Frequently Asked Questions
When should an auto repair shop owner start succession planning?
Ideally, many years before the planned exit. A long runway gives the owner time to identify and develop a successor, document systems, strengthen financial records, and explore options such as family transfer, sale to employees, or sale to an outside buyer. Starting early also protects the business if an unexpected event forces a transition sooner. Many advisors suggest beginning the conversation as soon as the business is stable, even if retirement feels far away.
What are the options for passing on an auto repair business?
Common paths include transferring the business to a family member, selling to a key employee or management team, selling to an outside buyer or competitor, and employee ownership structures such as an ESOP. Each has different financial, legal, and relationship considerations. Some owners combine approaches, such as a gradual sale to a key employee over several years. Talking with an attorney, accountant, and business coach helps owners compare options and choose the one that fits.
How do you prepare a second in command to take over a business?
Start by gradually expanding their responsibilities, from daily operations to budgeting, hiring, and strategic decisions. Give them real authority, not just tasks, and review results together regularly. Involve them in financial reviews so they understand the numbers behind the business. Introduce them to key vendors, partners, and customers. Finally, discuss the timeline and terms of the transition openly so both sides know what to expect and can plan accordingly.
What is an open door policy and does it work?
An open door policy means employees are encouraged to bring questions, ideas, and concerns directly to leadership. It works when leaders respond respectfully, avoid punishing people for speaking up, and follow through on what they hear. It fails when the door is technically open but feedback is ignored or met with defensiveness. Leaders can strengthen the policy by actively checking in with employees and holding regular one-on-one meetings.
What is a 15 year retirement plan for a business owner?
It is a long-range plan that sets a target date for stepping away and works backward to define what must happen first. That might include identifying a successor, developing leaders, documenting systems, reducing debt, and building personal savings outside the business. Breaking the plan into milestones with dates turns a distant goal into concrete steps. Reviewing it annually allows adjustments as the business, family, and market change.
Resources and Links From This Episode
Connect With the Guests
- Eric: website
