Your largest fixed costs terrify you.



Rent. Payroll. Insurance. These feel untouchable, permanent, scary to challenge.

But here's the secret: Your biggest costs offer your biggest cost reduction opportunities.

Most business owners negotiate small expenses while accepting large ones as "just part of business."

This backwards thinking leaves massive profit margins improvements on the table.

Rent Renegotiation Reality:

Landlords don't want to lose tenants—especially commercial tenants requiring buildouts. Most understand cash flow problems because many have experienced them through real estate downturns.

The key? Show financial statements, explain your situation honestly, and present a recovery plan that includes their concessions.

Add concessions to the lease back-end or extend terms as compromise.

Payroll Optimization Strategy:

Before layoffs, consider alternatives: hiring entry-level employees, implementing four-day workweeks, reducing hours instead of headcount.

Layoffs damage morale and often cost more than alternatives when you factor in rehiring costs.

Insurance Shopping Power:

Get quotes from multiple providers annually. Market rates fluctuate, and loyalty rarely gets rewarded with better pricing.

A good commercial broker will shop your policies at renewal, often finding significant savings.

The Volume Negotiation Advantage:

Suppliers often provide quantity discounts for larger, less frequent orders. This strategy works for both fixed and variable costs.

Calculate total carrying costs including storage, insurance, and opportunity costs to ensure real savings.

Subscription Audit Goldmine:

Many businesses pay for unused software, services, and subscriptions. Audit monthly charges ruthlessly.

Consolidate services where possible and eliminate redundancies.

Your biggest fixed costs aren't obstacles—they're opportunities for dramatic earnings improvement through strategic business optimization.