{"product_id":"sports-equipment-store-running-expenses","title":"How to Run a Sports Equipment Store: Monthly Operating Costs","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003ch2\u003eSports Equipment Store Running Costs\u003c\/h2\u003e\n\u003cp\u003eRunning a Sports Equipment Store requires careful management of inventory and payroll In 2026, expect total monthly running costs (excluding Cost of Goods Sold) to start around \u003cstrong\u003e$19,000\u003c\/strong\u003e to \u003cstrong\u003e$22,000\u003c\/strong\u003e, heavily driven by fixed rent ($5,000) and initial payroll ($11,042) Your initial revenue forecast of roughly $20,388\/month means you will operate at a loss, reflected in the Year 1 EBITDA of -$174,000 The business needs 32 months to reach breakeven (August 2028) This guide breaks down the seven critical operational expenses you must model to ensure sustainability\n\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\n\u003cspan style=\"color: #6067F2;\"\u003e7 Operational Expenses to Run \u003c\/span\u003eSports Equipment Store\u003c\/h2\u003e\u003cbr\u003e\n\u003ctable id=\"dwnld_tbl_id\"\u003e\n\u003ctr\u003e\n\u003cth\u003e#\u003c\/th\u003e\n\u003cth\u003eOperating Expense\u003c\/th\u003e\n\u003cth\u003eExpense Category\u003c\/th\u003e\n\u003cth\u003eDescription\u003c\/th\u003e\n\u003cth\u003eMin Monthly Amount\u003c\/th\u003e\n\u003cth\u003eMax Monthly Amount\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e1\u003c\/td\u003e\n\u003ctd\u003eStore Lease\u003c\/td\u003e\n\u003ctd\u003eFixed\u003c\/td\u003e\n\u003ctd\u003eThe fixed monthly lease expense is $5,000, which is the single largest fixed overhead cost.\u003c\/td\u003e\n\u003ctd\u003e$5,000\u003c\/td\u003e\n\u003ctd\u003e$5,000\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e2\u003c\/td\u003e\n\u003ctd\u003eStaff Payroll\u003c\/td\u003e\n\u003ctd\u003eFixed\u003c\/td\u003e\n\u003ctd\u003eInitial 2026 payroll for 25 FTEs (Manager and Sales Associate) totals $11,042 per month.\u003c\/td\u003e\n\u003ctd\u003e$11,042\u003c\/td\u003e\n\u003ctd\u003e$11,042\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e3\u003c\/td\u003e\n\u003ctd\u003eInventory COGS\u003c\/td\u003e\n\u003ctd\u003eVariable\u003c\/td\u003e\n\u003ctd\u003eWholesale inventory and inbound shipping total 130% of revenue, or about $2,650 monthly based on 2026 projections.\u003c\/td\u003e\n\u003ctd\u003e$2,650\u003c\/td\u003e\n\u003ctd\u003e$2,650\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e4\u003c\/td\u003e\n\u003ctd\u003eUtilities\u003c\/td\u003e\n\u003ctd\u003eFixed\u003c\/td\u003e\n\u003ctd\u003eUtilities are a fixed monthly cost of $800, covering electricity, water, and heating\/cooling for the retail space.\u003c\/td\u003e\n\u003ctd\u003e$800\u003c\/td\u003e\n\u003ctd\u003e$800\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e5\u003c\/td\u003e\n\u003ctd\u003ePayment Processing\u003c\/td\u003e\n\u003ctd\u003eVariable\u003c\/td\u003e\n\u003ctd\u003ePayment processing fees start at 25% of sales, representing a variable cost of roughly $510 monthly in 2026.\u003c\/td\u003e\n\u003ctd\u003e$510\u003c\/td\u003e\n\u003ctd\u003e$510\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e6\u003c\/td\u003e\n\u003ctd\u003ePOS\/Software\u003c\/td\u003e\n\u003ctd\u003eFixed\u003c\/td\u003e\n\u003ctd\u003eEssential retail software, including Point of Sale (POS) systems, costs a fixed $300 per month.\u003c\/td\u003e\n\u003ctd\u003e$300\u003c\/td\u003e\n\u003ctd\u003e$300\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e7\u003c\/td\u003e\n\u003ctd\u003eInsurance\/Admin\u003c\/td\u003e\n\u003ctd\u003eFixed\u003c\/td\u003e\n\u003ctd\u003eBusiness insurance ($250) and general administrative costs ($400) total $650 in fixed monthly overhead.\u003c\/td\u003e\n\u003ctd\u003e$650\u003c\/td\u003e\n\u003ctd\u003e$650\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003eTotal\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003eAll Operating Expenses\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003e$20,952\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003e$20,952\u003c\/b\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/table\u003e\n\u003cdiv class=\"dwnld_btn_div\"\u003e\u003cbutton id=\"dwnld_btn_id\" class=\"dwnld_btn_clss\"\u003eDownload Table in XLSX\u003c\/button\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e \u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is the total required monthly operating budget to sustain the Sports Equipment Store before profitability?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe total required monthly operating budget to sustain the Sports Equipment Store before hitting profitability is the sum of fixed overhead, payroll, and operational variable costs, which we estimate at \u003cstrong\u003e$44,000\u003c\/strong\u003e per month; understanding this cash burn rate is defintely step one before seeking funding. Have You Considered The Best Strategies To Open Your Sports Equipment Store Successfully?\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Overhead and Staff Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMonthly rent for a prime retail location is estimated at \u003cstrong\u003e$7,500\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eCore management and sales staff payroll runs about \u003cstrong\u003e$25,000\u003c\/strong\u003e monthly.\u003c\/li\u003e\n\u003cli\u003eInsurance, utilities, and essential software total roughly \u003cstrong\u003e$2,500\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThese fixed costs alone require \u003cstrong\u003e$35,000\u003c\/strong\u003e just to keep the doors open.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCalculating Minimum Monthly Burn\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eVariable operating costs, excluding Cost of Goods Sold (COGS), are projected at \u003cstrong\u003e$4,000\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eHere’s the quick math: Fixed Costs ($35,000) plus Payroll ($25,000) plus Variable OpEx ($4,000) equals the total burn.\u003c\/li\u003e\n\u003cli\u003eWait, payroll is often partially fixed, so we combine fixed overhead ($15,000) and payroll ($25,000) for a cleaner view of non-inventory costs.\u003c\/li\u003e\n\u003cli\u003eThe total minimum monthly cash burn rate is \u003cstrong\u003e$44,000\u003c\/strong\u003e before you sell a single piece of equipment.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhich two expense categories represent the largest recurring costs and how can they be optimized?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe largest recurring costs for the Sports Equipment Store are fixed overhead, specifically the \u003cstrong\u003e$5,000 monthly rent\u003c\/strong\u003e and initial staffing figures like the \u003cstrong\u003e$11,042\u003c\/strong\u003e starting payroll, which must be weighed against the variable Cost of Goods Sold (COGS); for deeper context on managing these ratios, see \u003ca href=\"\/blogs\/profitability\/sports-equipment-store\"\u003eIs The Sports Equipment Store Generating Consistent Profitability?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Fixed Overheads\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eRent is a fixed drain at \u003cstrong\u003e$5,000\u003c\/strong\u003e monthly.\u003c\/li\u003e\n\u003cli\u003eTie staffing levels directly to projected daily sales volume.\u003c\/li\u003e\n\u003cli\u003eEnsure the \u003cstrong\u003e$11,042\u003c\/strong\u003e initial payroll covers only essential, revenue-driving roles.\u003c\/li\u003e\n\u003cli\u003eTrack fixed costs as a strict percentage of expected monthly revenue.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLeveraging COGS\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate volume discounts with your top-tier brand suppliers.\u003c\/li\u003e\n\u003cli\u003eFocus inventory turnover to minimize carrying costs on specialized gear.\u003c\/li\u003e\n\u003cli\u003eApparel often carries a higher gross margin than hard equipment.\u003c\/li\u003e\n\u003cli\u003eUse expert staff time to drive higher Average Order Value (AOV).\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much working capital is necessary to cover the projected $174,000 first-year operating loss?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eYou need enough working capital to cover the \u003cstrong\u003e$174,000\u003c\/strong\u003e first-year operating loss, but the real target is ensuring liquidity hits \u003cstrong\u003e$282,000\u003c\/strong\u003e by November 2028 to manage the cash burn. This total cash buffer prevents a liquidity crisis before profitability kicks in.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCovering Year One Deficit\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInitial capital must absorb the \u003cstrong\u003e$174,000\u003c\/strong\u003e projected operating loss for the Sports Equipment Store.\u003c\/li\u003e\n\u003cli\u003eThis loss covers initial fixed costs like rent and salaries before sales stabilize.\u003c\/li\u003e\n\u003cli\u003eWorking capital must fund inventory purchases ahead of peak selling seasons.\u003c\/li\u003e\n\u003cli\u003eThis estimate assumes average inventory turns align with industry norms.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eThe November 2028 Cash Target\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eThe critical minimum cash reserve needed to survive is \u003cstrong\u003e$282,000\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis figure must be secured by \u003cstrong\u003eNovember 2028\u003c\/strong\u003e to maintain operations safely.\u003c\/li\u003e\n\u003cli\u003eIf you’re tracking owner compensation, see how much the owner of the Sports Equipment Store makes.\u003c\/li\u003e\n\u003cli\u003eThis buffer accounts for slower-than-expected customer adoption rates in the first 18 months.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eIf conversion rates drop below 80%, what specific costs can be cut to extend the runway?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eWhen conversion rates dip below \u003cstrong\u003e80%\u003c\/strong\u003e for your Sports Equipment Store, immediate focus must shift to slashing non-essential operating expenses to preserve cash flow; if you haven't already optimized your front-end strategy, Have You Considered The Best Strategies To Open Your Sports Equipment Store Successfully? Start by eliminating discretionary spending in General Administrative areas and re-evaluating headcount dedicated to non-revenue-generating roles, because you're burning cash faster than you realize.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eTarget Fixed Overhead\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCut the \u003cstrong\u003e$400\/month\u003c\/strong\u003e General Administrative budget first.\u003c\/li\u003e\n\u003cli\u003eReview all non-essential software and service contracts.\u003c\/li\u003e\n\u003cli\u003eDefer any planned technology upgrades until conversion hits \u003cstrong\u003e85%\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eStop all non-essential marketing spend immediately.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eReassess Headcount\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFreeze hiring for all non-managerial FTEs (Full-Time Equivalents).\u003c\/li\u003e\n\u003cli\u003eShift administrative duties to existing salaried staff members.\u003c\/li\u003e\n\u003cli\u003eEvaluate part-time staff schedules against peak sales hours.\u003c\/li\u003e\n\u003cli\u003eIf necessary, cut store operating hours by \u003cstrong\u003e10%\u003c\/strong\u003e weekly.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e \u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003eThe minimum monthly operating budget required to sustain the Sports Equipment Store before profitability is approximately $19,013, excluding inventory costs.\u003c\/li\u003e\n\n\u003cli\u003eStaff payroll, totaling $11,042 monthly, and the $5,000 store lease are the two largest recurring operational expenses driving initial overhead.\u003c\/li\u003e\n\n\u003cli\u003eThe business is projected to operate at a first-year EBITDA loss of $174,000 based on initial revenue forecasts.\u003c\/li\u003e\n\n\u003cli\u003eA significant runway of 32 months is necessary to reach the breakeven point, scheduled for August 2028, requiring substantial working capital.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 1\n: \u003cspan style=\"color: #126CFF;\"\u003eStore Lease\/Rent\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLease as Fixed Anchor\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour store lease is a major commitment, costing \u003cstrong\u003e$5,000\u003c\/strong\u003e monthly. This fixed expense is the foundation of your overhead structure. You must ensure projected revenue defintely covers this base cost before factoring in labor or inventory.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eEstimating Lease Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$5,000\u003c\/strong\u003e covers the physical space for your premium retail experience. Estimate this using signed lease agreements, factoring in base rent plus common area maintenance (CAM) charges. It’s a non-negotiable cost baked into your initial budget projections for the Sports Equipment Store.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse signed lease agreement terms.\u003c\/li\u003e\n\u003cli\u003eInclude CAM fees in the total.\u003c\/li\u003e\n\u003cli\u003eBudget \u003cstrong\u003e12 months\u003c\/strong\u003e upfront if required.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Occupancy Cost\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eReducing this fixed cost post-signing is tough. Focus on negotiating tenant improvement allowances during the initial deal. Avoid signing too long a term before proving unit economics. A good benchmark is keeping occupancy costs under \u003cstrong\u003e10%\u003c\/strong\u003e of projected gross revenue.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate free rent periods.\u003c\/li\u003e\n\u003cli\u003eScrutinize escalation clauses carefully.\u003c\/li\u003e\n\u003cli\u003eEnsure favorable early termination rights.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLease Impact on Break-Even\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince this \u003cstrong\u003e$5,000\u003c\/strong\u003e is your largest fixed overhead, it dictates your minimum sales volume. If your payroll is $11,042, these two items alone demand significant, predictable revenue flow just to cover baseline operations first.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 2\n: \u003cspan style=\"color: #126CFF;\"\u003eStaff Payroll\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInitial Staff Cost\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour initial staffing commitment for \u003cstrong\u003e2026\u003c\/strong\u003e requires budgeting \u003cstrong\u003e$11,042 monthly\u003c\/strong\u003e to cover \u003cstrong\u003e25 full-time employees (FTEs)\u003c\/strong\u003e, split between management and sales roles. This cost is fixed until you scale headcount or adjust compensation structures.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePayroll Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$11,042\u003c\/strong\u003e figure represents the base salary burden for \u003cstrong\u003e25 FTEs\u003c\/strong\u003e planned for \u003cstrong\u003e2026\u003c\/strong\u003e, covering both Managers and Sales Associates. To confirm this, you need the exact salary quotes for each role and the assumed employer tax burden, like FICA. This is a primary fixed operating expense.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInputs: Role count, salary rates.\u003c\/li\u003e\n\u003cli\u003eImpact: Major fixed overhead.\u003c\/li\u003e\n\u003cli\u003eYear: \u003cstrong\u003e2026\u003c\/strong\u003e baseline.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Headcount\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eManaging this high fixed cost means controlling hiring pace; hiring \u003cstrong\u003e25 people\u003c\/strong\u003e too early crushes early cash flow. Optimize by using part-time staff initially or tying sales associate pay to commission accelerators rather than pure salary. Don't hire based on best-case sales scenarios.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDelay hiring until needed.\u003c\/li\u003e\n\u003cli\u003eUse tiered compensation.\u003c\/li\u003e\n\u003cli\u003eAvoid defintely overstaffing early on.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Cost Context\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCompared to the \u003cstrong\u003e$5,000\u003c\/strong\u003e store lease, payroll is nearly double the largest fixed cost, making headcount the primary lever for controlling your monthly burn rate. If you delay hiring just 5 FTEs, you save about \u003cstrong\u003e$2,208\u003c\/strong\u003e monthly, easing pressure before revenue stabilizes.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 3\n: \u003cspan style=\"color: #126CFF;\"\u003eInventory Cost of Goods Sold\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCOGS Exceeds Revenue\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour projected Cost of Goods Sold (COGS) is unsustainable right now. Wholesale inventory and inbound shipping costs equate to \u003cstrong\u003e130% of expected 2026 revenue\u003c\/strong\u003e, totaling roughly \u003cstrong\u003e$2,650 monthly\u003c\/strong\u003e before even accounting for operating expenses. This structure means you are losing money on every dollar sold.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhat This Cost Covers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$2,650 monthly\u003c\/strong\u003e figure covers the cost paid to suppliers for specialized sporting goods and the freight required to move that stock into your retail location. You need precise supplier quotes and accurate unit volume forecasts to confirm this 130% ratio holds true. If revenue projections shift, this component changes directly.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Inventory Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFixing a COGS ratio over 100% requires aggressive negotiation with your elite brand suppliers. Focus on reducing inbound shipping by consolidating orders or shifting freight responsibility to the vendor. A key goal is lowering this cost below \u003cstrong\u003e50% of revenue\u003c\/strong\u003e to allow for gross profitt.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDemand volume discounts immediately.\u003c\/li\u003e\n\u003cli\u003eRequire vendors to cover inbound freight.\u003c\/li\u003e\n\u003cli\u003eTighten initial inventory depth.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eThe Profitability Gap\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince fixed overhead is about \u003cstrong\u003e$17,750 monthly\u003c\/strong\u003e based on 2026 estimates, having inventory costs exceed revenue by 30% guarantees you won't cover payroll or rent. You must raise average selling prices or secure better wholesale terms immediately.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 4\n: \u003cspan style=\"color: #126CFF;\"\u003eUtilities\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Utility Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eUtilities are a firm \u003cstrong\u003e$800\u003c\/strong\u003e monthly expense covering the physical space's core services. This cost is fixed, meaning it doesn't change with sales volume. Keep this number locked in your operational budget for the retail location.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$800\u003c\/strong\u003e covers essential services: electricity, water, and HVAC (heating\/cooling). Because this is a fixed cost for the retail space, it must be covered regardless of sales performance. It sits alongside rent and payroll as non-negotiable monthly overhead.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCovers \u003cstrong\u003eelectricity\u003c\/strong\u003e, water, and HVAC.\u003c\/li\u003e\n\u003cli\u003eIt is a \u003cstrong\u003efixed\u003c\/strong\u003e monthly charge.\u003c\/li\u003e\n\u003cli\u003eBudgeted for \u003cstrong\u003e2026\u003c\/strong\u003e operations.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eControl Tactics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eWhile fixed, you can manage usage aggressively to avoid future rate hikes. Focus on efficient HVAC settings, especially during off-hours when the store is closed. Defintely audit insulation quality now.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eOptimize \u003cstrong\u003eHVAC\u003c\/strong\u003e schedules.\u003c\/li\u003e\n\u003cli\u003eAudit lighting to LED.\u003c\/li\u003e\n\u003cli\u003eAvoid unused equipment running.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLease Structure Check\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf your initial lease structure includes utilities in the base rent, you save this $800, but your rent is likely higher. Confirm if the \u003cstrong\u003e$800\u003c\/strong\u003e estimate is based on NNN (triple net lease) structures where tenants pay operating expenses directly.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 5\n: \u003cspan style=\"color: #126CFF;\"\u003ePayment Processing Fees\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFee Drag\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003ePayment processing fees are a significant variable expense right out of the gate. For this retail operation, those fees begin at a steep \u003cstrong\u003e25% of sales\u003c\/strong\u003e. This translates to an estimated monthly cost of about \u003cstrong\u003e$510\u003c\/strong\u003e just to handle transactions in 2026. That’s money immediately leaving the top line before you cover COGS or rent.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFee Calculation\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis cost covers the interchange fees and gateway charges required to accept customer payments, likely credit cards. You need total projected monthly sales revenue to estimate the \u003cstrong\u003e25%\u003c\/strong\u003e bleed. Since this is variable, it scales directly with every transaction, unlike your fixed $5,000 rent payment. What this estimate hides is that the \u003cstrong\u003e$510\u003c\/strong\u003e figure is based on 2026 projections, so actual costs will rise with sales volume.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInputs: Monthly Sales Revenue\u003c\/li\u003e\n\u003cli\u003eRate: 25% of Sales\u003c\/li\u003e\n\u003cli\u003e2026 Estimate: $510\/month\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCutting Fees\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eReducing this \u003cstrong\u003e25%\u003c\/strong\u003e rate is crucial for margin health. Negotiate processor rates immediately after establishing volume, aiming for under 3%. Encourage customers to use lower-fee methods like ACH transfers or direct bank payments if possible. A common mistake is accepting the first quote; always shop your processing agreement yearly, defintely.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMargin Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eGiven that inventory costs are already \u003cstrong\u003e130% of revenue\u003c\/strong\u003e (meaning you lose money on every sale before overhead), high payment fees compound the problem fast. If you can reduce the processing rate from 25% to 3%, you immediately save \u003cstrong\u003e$458\u003c\/strong\u003e monthly against the current \u003cstrong\u003e$510\u003c\/strong\u003e estimate. That savings directly boosts your gross contribution.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 6\n: \u003cspan style=\"color: #126CFF;\"\u003ePOS and Software Subscriptions\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Software Overhead\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eRetail software costs are fixed overhead for Apex Athletics. Your Point of Sale (POS) system and other essential retail applications total exactly \u003cstrong\u003e$300 per month\u003c\/strong\u003e. This cost is predictable and must be covered regardless of sales volume. It’s a baseline expense before you sell your first piece of athletic gear, defintely.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInputs for POS Cost\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$300\u003c\/strong\u003e covers the core transaction engine for your store. For Apex Athletics, this includes the POS software license and likely necessary integrations for inventory management. Since it is a fixed cost, you must calculate how many sales days it takes to cover it based on average transaction value.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFixed monthly fee.\u003c\/li\u003e\n\u003cli\u003eCovers POS license.\u003c\/li\u003e\n\u003cli\u003eInventory tracking included.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOptimize Software Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eAvoid feature creep when selecting software. Many modern POS systems try to bundle marketing or customer relationship management (CRM) tools you don't need yet. Stick to the essentials for now to keep costs low. If you sign an annual contract instead of month-to-month, you might save \u003cstrong\u003e10%\u003c\/strong\u003e, but lock in commitment.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAvoid bundled extras.\u003c\/li\u003e\n\u003cli\u003eNegotiate annual rates.\u003c\/li\u003e\n\u003cli\u003eCheck integration fees.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eSoftware vs. Other Fixed Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$300\u003c\/strong\u003e software expense sits alongside your \u003cstrong\u003e$800\u003c\/strong\u003e utilities bill and \u003cstrong\u003e$650\u003c\/strong\u003e insurance overhead. Combined, these non-inventory fixed costs are \u003cstrong\u003e$1,750\u003c\/strong\u003e monthly. You need sales volume just to cover these baseline operational necessities before factoring in payroll or rent.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 7\n: \u003cspan style=\"color: #126CFF;\"\u003eInsurance and Admin\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Base Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eInsurance and basic admin costs total \u003cstrong\u003e$650\u003c\/strong\u003e monthly, a non-negotiable fixed overhead you must cover before generating sales. This amount is small compared to rent and payroll, but it sets your minimum operational floor for the retail space.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$650\u003c\/strong\u003e covers required business insurance, protecting against liability risks associated with selling equipment, plus general administrative costs like compliance filings. Since these are fixed, they don't scale with revenue volume. You need firm quotes to lock this in accurately.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eInsurance coverage: \u003cstrong\u003e$250\u003c\/strong\u003e\/month.\u003c\/li\u003e\n\u003cli\u003eGeneral admin overhead: \u003cstrong\u003e$400\u003c\/strong\u003e\/month.\u003c\/li\u003e\n\u003cli\u003eThis is pure fixed cost.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Admin Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou shouldn't skimp on insurance, but admin costs offer optimization room early on. A common mistake is purchasing premium compliance software before you have enough transaction volume to justify it. Keep admin lean until payroll and revenue grow substaintially.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShop insurance deductibles annually.\u003c\/li\u003e\n\u003cli\u003eDelay complex software subscriptions.\u003c\/li\u003e\n\u003cli\u003eBenchmark admin against peers.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOverhead Context\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eCompared to the \u003cstrong\u003e$5,000\u003c\/strong\u003e lease and \u003cstrong\u003e$11,042\u003c\/strong\u003e payroll, this $650 is only about \u003cstrong\u003e4%\u003c\/strong\u003e of your major fixed overhead. However, if you only hit $2,000 in sales, this expense represents a huge drag on contribution margin. It must be covered every single month.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49304289378547,"sku":"sports-equipment-store-running-expenses","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/sports-equipment-store-running-expenses.webp?v=1782692947","url":"https:\/\/financialmodelslab.com\/products\/sports-equipment-store-running-expenses","provider":"Financial Models Lab","version":"1.0","type":"link"}