Small businesses are often hit the hardest during economic downturns, and this one is no exception. When credit dries up, consumer and business spending does too.

So, what can you do? How can you make it through the coming months? Here are several suggestions:

Analyze expenditures to see which ones are directly related to producing income. Look at all your costs, but pay particular attention to costs that aren't fixed. Are you spending money on "cool" gadgets or software that don’t really do anything to bring in sales? Are you paying a monthly subscription for services you aren’t using?

Market more aggressively to your higher profit customers and to customers who fit a similar demographic profile.

Watch for income and expenses trends that could have a negative affect on your business (ie, your costs are going up but you haven’t increased your prices in three years). Make changes to ward off problems - and do it now - before little problems develop into major threats to your business.

Guard against embezzlement and shrinkage. Personal financial problems, hidden gambling problems, and other issues may cause trusted emloyees to steal or "borrow" from the company. Sadly, this is a fairly common problem for small businesses and the perpetrator is usually a trusted employee, partner or spouse.

Eliminate wasteful spending. Before you or your staff head out to the next trade show, for instance, consider how many leads and paying customers from the show the last time you attended it or had a booth there. If the ensuing sales didn't compensate for your cost of going to the show, consider skipping it this year.

8 Ways to Stay Afloat in a Bad Economy

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