Chairman Robbie Cowling says Colchester are not "relegation fodder" after Saturday's 5-1 loss to Burton left them just above the League One drop zone.
The U's are currently managerless after Tony Humes' departure last week.
"There's a lot of good things at Colchester - we're not coming from ground zero," Cowling told BBC Essex.
"We've only got to go back a few weeks and some people were thinking we were promotion material. There's not a lot changed inside the club."
Cowling, whose club have the worst defensive record in the Football League having conceded 49 goals, continued: "I never got carried away and never thought that was likely but I also don't think we're relegation fodder.
"There's things we need to sort out and do, and that's what we're going to work to do."
Humes left after nearly 15 months in charge, having been promoted from academy coach following Joe Dunne's sacking last season.
The U's place an emphasis on bringing youth players into the first-team squad, and Cowling says he is looking internally first for a new manager.
"We are following a club philosophy. My opinion is that over a few years that it's working for us. It's not at this moment in time," he said.
"We're not in the relegation zone at this moment, there's time to turn it around, there's a lot of good players at the club and a lot of good things about the club."