1. Work on outstanding Customer Service. If you already have a good, loyal clientele the best thing you can do to fight the recession is to offer outstanding customer service. It's difficult to say what people will do when the economy in a recession; most will turn to the cheapest services possible but still hope for good customer service. If you want to maintain the customers you have and get the word out then keep them happy; from taking the order to delivering the product you market. You might also need to consider making your payment options more flexible as well. Everything reflects your service and if it's bad, you won't be in business for very long.
2. Diversification. When the economy is cold, diversification is one of the better ways to survive. The more services you can offer your customers the more people you will likely find. Let's take something simple; say you make hair bows. Instead of just making hair bows you can also make headbands, hats, and sell hair products. Can you see how diversifying your product might make you more money?
3. Magnify your Marketing techniques. One of the most common mistakes made when the economy slows down is done through cutting back on your marketing and advertising. This is actually one department that you don't want to take any cut backs in. When the economy is slow it takes more marketing to get the word out. Your marketing needs to be more aggressive than ever. You can: contact past clients just to touch base with them, offer discounts or free things as incentive, and use a referral program as part of your marketing efforts.
4. Examine, Explore, and Improve. Most people are content to sit where they are and keep doing what they're doing unless something changes it. Even when the economy is hot this can be detrimental to your business. An important recession strategy for a home business is to always examine the business, explore new ideas, and improve their business. You want your business to run as efficiently as possible. Look at your competitors, talk to other business leaders, take some classes, read books, and always get some feedback from employees and co-workers. By doing so you will be a better company tomorrow than you are today.
5. Keep your technology current. If you're looking to come out of this recession on top then you need to stay ahead of the technology, especially when it comes to your competitors. Take your business online, use your email to contact clients and get a great web page. Getting online means that you need to take your business and product nation and even world wide. Getting online gives you an excellent opportunity to reach more people, this in turn gives you a great chance at a bigger return.

Hopefully these recession strategies for small home businesses will help you keep your business up and running during these difficult times. Good luck.