1.  Delay decisions that improve the long term health of your company.  Expect to be second guessed but continue to invest in people, take on additional debt and position yourself for the recovery to come.  Yes it's risky - that's what we do in business - we take risks to make a profit.  No risk = no gain.
2.  Assume that the smart way to gear back up is gradual and cautiously.  Recovery is usually fast.  Gradual approaches will leave you behind.
3.  Try to bulletproof yourself by moving to recession proof businesses.  Switching what you do from proactive to reactive (e.g.: in maintenance you could avoid PMs, focus only on repairs) will leave you weak and ill positioned to handle the higher demand to follow.
4.  Trying to broaden your customer base with special promotions.  Going cheap never pays.  The customer who is loyal only to the dollar will not be loyal to you.  Likewise in maintenance, don't cut corners - it will bite you later.
5.  Assuming that recovery is based on what you do, not what you think.  Giving power to what you fear is sure way to bring it on.  You end up feeding a cycle of doom.  A confident, positive outlook is essential.  Positive energy is what's needed to turn the situation around - it begins with attitude and your beliefs, not just your actions.

We completely agree with Harvard on this.  You're at lower capacity - the excuse that you don't have "the resources" (i.e.: the people) to make those longer term improvements, to get that new program off the ground, etc. just doesn't cut it now.  You have the capacity to get things done now.  Don't squander it.  Use it as an investment in your future capacity.  Cutting back is a short term knee-jerk reaction.  Respond to the circumstances positively rather than reacting in ways that will ultimately do harm to your business.

1.  The Wonders (www.thewonders.com)