It's a lot easier to look good when you're managing a growing firm than when you're running a shrinking business. But sometimes, faced with disappearing markets and dwindling cash accounts, there is no alternative to shrinking, no matter how able, creative and energetic you are.

I'll admit that I wasn't very good at shrinking a business and, frankly, most of you probably won't be either. Nevertheless, this advice to help you through those dark days is from one who learned the hard way.