He says his team are in a difficult place after a chaotic 4-2 defeat at Ebbsfleet United.
The Red Dragons boss stopped short of suggesting his team can no longer win the National League title.
Wrexham are five points adrift and leaders Leyton Orient have two games on the Welsh club.
But he says things must change in order for the club to return to the Football League.
It was the one-time table-toppers’ fourth defeat in their last five matches and they are now down to fourth.
Hughes said: “It’s a disappointing result and performance.
“The first half in particular we didn’t get anywhere near the levels expected of us.
“I think we might need to go back to basics because at the moment this is a bit of a stumbling block for us.
“We have five games left and we need to put things right.”