#1 Ahead of the storm, save, save, save even when you’re able to spend, spend, spend. Owners should save as much cash as possible during good economic times to be available for potential bad times. His advice?. Make sure you absolutely need that new equipment before making big purchases. Don’t replace anything that works just to have the newest thing out there.

Cut unnecessary expense accounts: Your employees might not like this one, but cut out lavish expense accounts. Down the road it may mean being able to avoid cutting their job – and then they’ll thank you. Do your homework on health-care plans: Even the smallest amount of savings can pay off over time. Study all of your options closely. Leave no quote unturned.

#2 Automate and find a few good interns: Assess your daily operations and see where automation can come in handy. If there is a task, such as answering the phone, that could be made more cost effective by getting a machine to do it - do it! This will save money and allow for the freed up employee to put his or her skills to more demanding work.

#3 Don’t cut the marketing budget: The next tip to avoid layoffs in a downturn is contrary to what most people think: spend money on marketing. Small business owners need to remain relevant in tough economic times and one major way is through strategic ad buys, be they online or in print.

#4 Customers are still kings: During tough times, it can pay to reach out directly to customers and make personal connections. Some ways to do this include creating a contest, online survey and/or even a request for info.

#5 Hire wisely, fire less: Look for candidates with diverse backgrounds, this way you can be more certain there will be a place for them should job titles need to shift.

Find employees who share a passion about the business. It is important to have employees who care just as much as you. This energy will be necessary when a worker, in order to avoid being laid off, is told to alter how he or she does business.