10 Steps to Ready Your Biz for an Turnaround

ShoreTel has been able to open new overseas markets, start teams focused on new markets like government contracts and hire new engineering talent because it carries no debt, says Combs. "Our business is in a good position, compared to competitors like Cisco (CSCO Quote) and Nortel (NT Quote), which have balance sheets with huge amounts of debt. From our perspective, the worse it gets, the better it is long term for ShoreTel."

9. Convert What You Can to Cash

That means unloading that warehouse you never use. Putting a For-Sale sign on that piece of machinery that's gathering dust. Use eBay, used equipment buyers, Craigslist , overseas buyers. "Remember, cash is king," says Davis.

10. Reach Out and Connect

Continue to build up your network. Volunteer for events. Sign up to be on your industry's association committees and boards. These relationships come in handy whether times are rough or rosy.