Firms in Sussex have been advised to make a contingency plan if they are to survive recession.

Andrew White, business recovery partner at Brighton-based advisers BDO Stoy Hayward, said as the economic outlook worsened, the chances of weaker businesses going to the wall increased.

Businesses should be preparing contingency plans and he suggested ten tips to see them through the hard times:

Plan an approach to survival in the same way you planned for success.

Take a long, hard look at your short-term objectives and make sure you are not just focusing on the horizon. Long-term planning is still important but short-term survival is the key.

Bosses should be aware of what is going on in the market as well as in their own firms so they can spot problems early.

To do this, they need accurate and timely management information.

Watch the business's financial controls.

They will become increasingly important as cash generation supersedes sales and profits as your key business driver.

Raise bills as quickly as possible, tighten up the credit control function and consider protecting against customer failure.

Ensure the business does not become the customer's banker by default.

Reviewing the terms of trade and retention of title clauses may also assist in debt recovery in the future.

Bank managers and financiers who are unaware of problems until the last minute are less likely to be sympathetic.

Management may not have experienced the additional pressures of operating in a downturn but, if you are proactive and communicate with your bank or financier, you will usually gain their support.

Cost-cutting is often the most obvious strategy but it is not simply a question of downsizing.

An unconsidered, knee-jerk reaction to trading difficulties can endanger the business you are trying to save.

Focus on core functions and concentrate on products whose market share can be maintained on the basis of quality not price. Do what you do best.

Exploiting your business's asset base can reap benefits in several areas.

Consider alternative financial arrangements and the cost of change.

Using factoring or invoice discounting or sale and leaseback arran-gements will improve cash flow in the short-term.

Owner-managers can support the business from their own resources; the cheapest form of finance.

Business angels might provide a source of management expertise as well as finance.

Refinancing will often buy additional time but will not alone ensure survival if you fail to address the underlying problems.

Even if the downturn doesn't materialise, addressing the areas of under-performance leaves the business in a stronger position to capitalise on market opportunities.

Mr White said time equalled options. The longer a business waited, the more difficult it would be to bend the curve and return to profitability.