10 Steps to Ready Your Biz for an Turnaround

"Or bundle services or offer something to a consumer that distinguishes yourself from others. These tend to not cost a lot of money because you're utilizing what you have now to increase offerings."

4. Resist Bargains

Vendors are hungry for business so they're slashing prices. But don't be seduced by the bargains and throw money away on equipment and supplies you really don't need. "It's not a good deal if it doesn't help with your core capabilities," says Strickland, who is also president and CEO of FOCUS Resources.

5. Start Negotiating

Position yourself for a brighter future by cutting expenses. That means negotiating with vendors and bankers about terms, pricing and schedules. They're just as eager not to lose your business as you are not to go out of business.

6. Collaborate

Another way to cut costs and strengthen your position is to form alliances and collaborative agreements with other businesses. David Zahn of Zahn Consulting, says you should even consider sharing workspace. "This allows for better synergies to evolve and emerge for when opportunities arise."

7. Be Smart About Staffing

Keep employees you consider integral to the business. It takes money and time to train someone and bring him up to speed on all the company's practices and procedures so don't let go of anyone you'll need as soon as business picks up. Meanwhile, hire temps. Also collect resumes of people you think can help you to ramp up quickly, recommends Zahn.

8. Build Up Cash

Whoever ends up with the most cash at the end of the day has a fighting chance at being around for the 22nd century. You need cash to buy needed equipment, make payroll and expand. And now that banks are less than eager to issue loans and lines of credit, cash has become even more important.