What would happen if you, or one of your key leaders, suddenly could not come back to work? In episode 121 of Maximum Octane, Kim Hickey and Jason Patel talk with Tony Mercury, Vice President of Operations at Autoshop Solutions, about the moment his company faced that exact situation.
When the company’s CEO was suddenly out due to a serious illness, the team had to respond quickly and confront gaps in its leadership transition plans. Tony shares what that moment looked like, the emotional toll, the systems that helped, the lessons learned, and why every shop owner needs to stop putting off succession planning.
What You Will Learn
- What happened when Margaret got sick and why it shook the company
- Why most shop owners avoid succession planning until it’s too late
- How lack of structure turns a crisis into chaos
- Why a “checklist for death” is not the same as a real plan
- Three types of plans every business should have
- How to start building systems that support leadership transition
- Why your plan needs more than titles and SOPs
- The risk of leaning too hard on one person, especially if it’s you
- What you can do right now to prepare your shop for the unexpected
When the CEO Got Sick
Tony opens with what happened when Margaret, the company’s leader, became seriously ill and why it shook the organization. The situation was sudden and deeply personal. It also exposed how much the business depended on one person. Many shop owners will recognize the same vulnerability in their own operations.
A sudden absence tests a business in ways that a planned vacation never does. There is no handoff meeting, no list of open items, and no chance to ask questions. Decisions that were made instinctively by one person now sit unanswered. In a repair shop, that might mean nobody knows how to approve payroll, which vendor terms were negotiated, how the shop management software is configured, or which commercial accounts need special handling. Meanwhile, the team is also dealing with the emotional weight of a colleague or owner who is seriously ill.
Why Owners Avoid Succession Planning
Around the 4 minute mark, Tony explains why most shop owners avoid succession planning until it is too late. It feels uncomfortable to think about illness, death, or stepping away. There is always something more urgent. But avoiding the topic does not reduce the risk. It only increases the damage if something happens.
ATI’s Succession Planning Blueprint gives owners a starting framework.
Part of the avoidance is that “succession planning” sounds like retirement or selling the business, which may feel far away. Reframing it as continuity planning helps. The question is not “who takes over when I leave?” but “what happens next Tuesday if I cannot come in?” That question is relevant to every owner, regardless of age or plans, and it is far easier to start answering.
How Lack of Structure Creates Chaos
Tony describes how a lack of structure turns a crisis into chaos. When roles, decision rights, and information are not clearly defined, people do not know who is in charge or what to do next. Clear structure gives a team the confidence to act when the leader is unavailable.
Structure does not have to mean bureaucracy. For a small shop, it can be as simple as a written list of who makes which decisions, who can sign checks or approve purchases, who handles customer escalations, and who has access to which systems. When those answers are written and shared ahead of time, a team can respond to a crisis with confidence instead of waiting for permission that cannot come.
A Checklist for Death Is Not a Plan
Around the 9 minute mark, Tony makes an important distinction: a “checklist for death” is not the same as a real succession plan. A list of passwords and accounts is useful, but it does not prepare people to lead. Real plans include developing leaders, documenting how decisions are made, and practicing transitions.
Account lists and passwords do serve a purpose, and every owner should have them in a secure place where a trusted person can reach them. The gap is everything that list leaves out: the judgment calls, relationships, and context that make the business run. Who should handle the largest fleet account? How does the shop decide when to extend credit or offer a goodwill repair? A real plan transfers that knowledge over time, so the people stepping in already understand how decisions are made.
Three Types of Plans Every Business Needs
Tony outlines three types of plans every business should have. Listen to the episode for his framework. In general, businesses benefit from plans for short-term emergencies, longer-term absences, and permanent transitions such as retirement or sale. Each requires different preparation.
Thinking in terms of time frames helps owners prioritize. A short-term plan answers who covers daily operations, approvals, and payroll for a few days or weeks. A longer-term plan addresses an extended absence of months, where leadership, customer relationships, and strategic decisions need a clear owner. A permanent transition plan deals with retirement, sale, or the death of an owner, and typically involves legal, financial, and tax advisors along with ownership agreements and insurance.
Building Systems for Leadership Transition
Around the 15 minute mark, Tony explains how to start building systems that support leadership transition. He emphasizes that plans need more than titles and SOPs. They require people who understand the business, trust each other, and have practiced making decisions. Reiny Salmen shows how organization supports succession in How to Stop Tool Hunts, Boost Accountability, and Run a Smoother Auto Repair Shop.
Practice is what turns a plan into real readiness. One effective approach is for the owner to step away for a planned period, such as a week of vacation, and let the designated leader run the shop with limited check-ins. Whatever goes wrong during that week reveals the gaps in documentation, authority, and training. Each absence becomes a low-risk rehearsal for an unexpected one.
Cross-training matters at every level. If only one person can order parts for a certain account, run month-end reports, or calibrate a particular system, the shop has a single point of failure that deserves attention.
The Risk of Depending on One Person
Tony warns about leaning too heavily on one person, especially if that person is you. Many shops depend on the owner for key relationships, decisions, and knowledge. That dependence is a risk to the business, the team, and the owner’s family.
Owner dependence also affects the value of the business. A buyer or successor will pay more for a shop that runs well without the owner present, because its revenue does not walk out the door when the owner does. Reducing dependence is not only protection against a crisis. It also gives the owner more freedom today, including the ability to take real time off.
Common Succession Planning Mistakes
Several mistakes come up again and again. One is naming a successor without giving that person real authority or development, so they are unprepared when the moment arrives. Another is keeping the plan secret, which leaves the team confused about who to follow. A third is focusing only on legal documents while ignoring operations and relationships. Owners also tend to create a plan once and never revisit it, even as people, roles, and the business change. Finally, many owners overlook their family, who may need to make decisions about the business with little information.
Addressing these is mostly a matter of communication and repetition: share the plan with the people involved, give them responsibility now, and review it as part of the annual planning process.
Questions to Ask Your Advisors
Owners do not need to build every piece of a plan alone. Accountants, attorneys, insurance agents, and financial advisors can help with the parts that require expertise. Useful questions include:
- What happens to ownership of the business if I die or become incapacitated?
- Do our agreements and powers of attorney allow someone to act on the business’s behalf?
- Is our insurance coverage appropriate for the loss of a key person?
- What would the business be worth today, and what would make it more valuable to a successor?
What You Can Do Right Now
Tony closes with steps owners can take today to prepare for the unexpected:
- Identify who would lead the shop if you were out for 30 days.
- Document critical decisions, relationships, and processes.
- Give your second in command real authority now, not just in a crisis.
- Store key financial and legal information where trusted people can access it.
- Review your plans at least once a year.
The SBA’s Manage Your Business guide also covers business continuity basics.
For more on succession, listen to ATI President Ron Greenman in The Succession Shift and Gilda Dyckman in Building, Battling, and Letting Go.
Frequently Asked Questions
What is a succession plan for an auto repair shop?
A succession plan explains how leadership and ownership of the shop will transfer, whether temporarily or permanently. It covers who makes decisions if the owner is unavailable, how key knowledge and relationships are passed on, and the legal and financial steps for a retirement, sale, or death. A good plan includes developing leaders in advance, not just listing names and passwords.
When should a shop owner start succession planning?
Now, regardless of age or retirement plans. Illness, accidents, and family emergencies can happen at any time. Start with a short-term continuity plan that names who would run the shop for a few weeks and documents critical information. Then build toward longer-term and permanent plans with help from your accountant, attorney, and insurance advisor. Review everything at least once a year.
What should a business continuity plan include for a small shop?
At minimum, include who is in charge if the owner is out, who can approve payments and payroll, where financial, legal, and system access information is stored, key vendor and customer contacts, and documented procedures for critical tasks. Make sure the designated people know about the plan and have practiced using it, and keep copies of key information secure but accessible.
How do I make my shop less dependent on me?
Start by listing everything only you do, then document, delegate, or train someone on each item over time. Give your managers real decision-making authority and let them use it. Cross-train employees on critical tasks. Take planned time away from the shop and note what breaks while you are gone. Each gap you close makes the business more resilient and more valuable.
Who should be involved in creating a succession plan?
The owner should lead it, but the plan works best when the people affected are part of the process. That usually includes your designated successor or key managers, your spouse or family members involved in ownership, and professional advisors such as an accountant, attorney, and insurance agent. A business coach can also help structure the plan and hold you accountable for completing it.
Resources and Links From This Episode
Connect With the Guests
- Tony Mercury: LinkedIn, Autoshop Solutions, Follow Autoshop Solutions on Instagram, Connect with Autoshop Solutions on LinkedIn
