Collaboration and creativity will get you through

"New ideas and approaches will drive your business forward during the recession, so sidelining innovation is absolutely the wrong thing to do. " says Shaa Wasmund.

We asked some of the UK’s most seasoned entrepreneurs and investors to reveal their top business tips and advice for surviving an economic downturn.

Collaboration and creativity will get you through

I set up my first business, a PR company, in the mid-1990s at the tail end of an economic downturn. It didn't even occur to me that I shouldn't go ahead because of the financial conditions. Maybe it was the naivety of youth but I knew what I wanted to do and just did it.

The dot.com crash came a few years later but that was a minnow in comparison to what we're experiencing now. We knew there'd need to be a simmering down at some point but no-one expected anything like this. The challenge is that we don't know whether we've hit rock bottom yet. When we reach rock bottom, people will start to see a real way out and will make decisions again.

Prepare for the worst

This is going to be an extremely difficult year and businesses need to expect and prepare for the worst. Every single penny counts, so businesses need to look at expenses and travel budgets and find ways of reducing costs. Cutting staff should be a last resort and I'd urge anyone that's reaching this point to explore every possible alternative. In small teams it might be possible to avoid redundancies if people are prepared to take salary cuts.

It's important to involve your teams in trying to find solutions. The people who work at the frontline of your business have a different perspective and may be able to offer fresh ideas on cutting costs and finding a way through the downturn.

Businesses that have borrowed responsibly and been good customers to their banks may still find that their banking facilities are withdrawn. If this happens to you, you need to fight your corner by taking your case up with senior executives at the bank and getting your MP involved. You also need to hold your suppliers and customers to strict terms. If your payment terms are 30 days, then you should be chasing at 25 days.