Financial Advisor, Gavin Reddy, has provided these guidelines for SMEs under strain.

1. Restate cash flows as projections to reflect the worst-case scenario, in which expected sales dip with consequent cutting of overheads. Then provide a second cash flow projection to show a conservative view with practical reasons for such statements. In this way, what is made over and above the projections can be ploughed back into the business for rainy days.

2. Focus on an open and honest policy of discussing the real challenges with all stakeholders. Understand that there has to be a focus on cost savings, higher efficiency and productivity levels with zero to absolute minimum wastage. Ensure that you contract legally on all performance agreements.

3. Try not to retrench staff but rather see if they are willing to share jobs. It costs more to hire, train and properly equip new people with similar skill levels.

4. Consider leasing facilities not used by other businesses. In a slowing economy, what are the opportunities to use business assets to make money off related services?

5. Perhaps it's a good time to tighten the belt by lessening the repayment period for debtors - limit the amount of credit you give, and enforce shorter collection periods where the business norm has been exceeded.

6. Reduce stock holding according to financial projections in terms of sales.

7. Depending on the relationship you have with suppliers, ensure that you negotiate terms that will create win-win situations.

8. It's a good idea to have one-on-one meetings with debtors so that you can be sure of their ability to pay in today's difficult climate.

9. In terms of customers, look for new markets to sell a service related to your business for additional income and use your networks.

10. This is not the time to spend money and try new things.

These are trying times for SMEs and the ability to think on your feet and adapt to the economic turmoil could be your key to survival.