Take care of your staff:

Here I mean communicate your difficulties and decisions to them directly. You will need their 'buy in' even more at times like this and if they know the circumstances, then they will not be surprised by any decisions you take.
Yes, some people may decide to leave and that is a risk. But any dips in the market are also opportunities for key staff to develop new skills and become even more flexible. Motivation and morale can so quickly deteriorate at these times, but good communication and strong management helps to prevent this.

Hold your nerve

You are not alone. All businesses are going through the same situation to a greater or lesser degree. Never panic. Consider as many options as you can. Seek advice from others (free as well as paid for), use your network of contacts, your friends, your family and business associates for support and encouragement. You can do it!

Keep your cashflow up to date daily and weekly

It is how business runs. Know with certainty what cash will move in and out and plan for contingencies. Tight control like this will pay dividends.
Speak to your suppliers and ask for extended payment terms. If you tackle this directly, they will listen to you, but adhere to the payment terms you agree or risk a refusal next time.

Ditch unnecessary expenditure

Look closely at everything you pay for. Do you need it?

Tight credit control

Chase debts as soon as they become due. Remember though that the real winners in debt recovery are often the lawyers and debt collection agencies.
Try to have good dialogue with your customers to get your money and to establish just why they may not be able to pay you.

Consider funding options

Could you obtain funding from leasing, HP, loans or mortages?

Don't stop marketing!

Smart businesses continue to market through downturns. Many of their competitors don't. If you don't have a strategic marketing plan, now is the time to create one. You will steal a march over your market and be ready when recovery begins.

Reduce your stock holding

Why not arrange a sale or return method?

Cash is King!

Get rid of dead stock

Look at your loans

Is it time to talk to your lenders? To consolidate your borrowings? Lower your interest?

My list is not exhaustive but covers the principal areas you need to consider.
I wish you luck in your endeavours and I have every faith that our regional and local economies will withstand the storms as well as they did during the last recession.

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