Contingency Planning 

By Jud Griggs, [email protected]

Your 2026 operational plan and budget are complete, and you are making good progress on meeting and exceeding your goals for 2026. You can now put things on cruise control. Right?

Wrong!

Unfortunately, business is never that easy. If you are an astute business leader, you know things will come up during the course of the year to disrupt your business plan. You need to be prepared to pivot and make some in-course adjustments to your plan to prevent major losses. One good example is the current war in Iran.

I’m sure you have been watching the developments in the Mideast. The war with Iran is lasting longer than anyone predicted. A prolonged war could have significant negative impacts on our economy resulting in negative impacts to your business. You need to be on the lookout for the warning signs that may impact your business. These signs are:

Higher fuel prices can cause significant economic stress.

• With diesel fuel prices spiking upward, I am already reading about fuel surcharges being added to invoices by suppliers and trucking firms.
• Higher fuel prices at the pump will negatively affect your net profit. If prices keep rising, you may want to consider updating your pricing model.
• Fuel price increases will also raise core inflation numbers which could result in the Fed not reducing interest rates making borrowing more expensive.
• Higher gas prices will impact your clients as well. Some will start to see their buying power reduced.
• Finally, higher fuel prices will result in a surge in fertilizer prices

A drop in consumer confidence.

Consumer spending significantly impacts the economy. If consumer confidence drops, you may see the following negative effects on your business:

• Cutbacks on enhancements
• Installation Projects put on hold
• The scope of projects may be reduced

These are the warning signs to look for if the war with Iran drags on.

To prepare for these negative impacts, start creating a contingency plan. The contingency plans could include some or all the following:

• Should you put some major purchases on hold?
• Should you hold off on adding people to your team?
• Create a “less than expected” budget to do some “what if” planning

I’m not suggesting that you immediately back off your 2026 business plan and budget. The war with Iran could be over next week and fuel prices could drop back to pre-war levels. I’m just suggesting that you become agile enough to pivot if you start seeing the warning signs.

Let me know if I can help you Harvest Your Potential! – [email protected]