Out of the three choices that are given, I would say the best answer to that is downsizing. if you think that your company is already suffering due to the fixed costs that are sucking out all of your money, then the obvious answer would be to cut costs. There will be a problem with your cash flow if there is too much going out and not enough coming in. So while you work on bringing in sales, why not cut down on some expenses? In this case, downsizing might be the best option.