Right size

Unfortunately, one of the first steps to take to save your business may be letting some employees go. Laying off 60 percent of a staff is common in situations where the company is on the brink. Today, employees realize downsizing isn't their fault, and you may even be able to rehire some workers after business improves.

I recommend: Personnel Policy Service Inc. provides resources on what to consider in laying off employees legally and ethically.

Get back in the black

Restructuring debt is a prerequisite for filing for bankruptcy and, if done correctly, can help you avoid filing at all. The process enables debtor firms to reorganize to return to positive cash flow and creditors to get the highest possible return. The best technique is to negotiate debt discounts and payment extension plans with your creditors.

I recommend: The Commercial Debt Counseling Corp. provides advice as well as a free, confidential evaluation of your debt on their Web site.

Hire a turnaround management specialist

Have specialists look at where your business is failing and determine why the mechanisms you have put in place haven't stopped the bleeding.

I recommend: The Turnaround Management Association, a nonprofit association focused on corporate renewal and turnaround management, has tips to help find the pain points. Turnaround Consultants International also highlights phases a company should expect to go through during a restructuring. Find a specialist at the Association of Certified Turnaround Professionals.

Go with the flow

Cash management is the key to sustaining your business. You need to have the best accounting practices to squeeze every dollar out of your business to stay solvent.

I recommend: Try this 13-week critical plan for cash flow from CPA firm Michael Goldman & Associates.

Follow the money

Collecting receivables is key to improving cash flow and getting your business back on track.

I recommend: VC and business incubator Gaebler Ventures provides advice on the most tactful ways to get the money you're owed.