If you are loading a real-mode mouse driver (check your AUTOEXEC.BAT file), consider removing the mouse driver from AUTOEXEC.BAT.
Make sure any other real-mode drivers loaded through your AUTOEXEC.BAT and CONFIG.SYS files are actually necessary. If not, consider removing them so Windows won't load them.
If you are using a high-resolution video mode or if you are using a Windows 3.1 video driver, the driver may be using a large amount of DOS memory. Try switching to a lower resolution, which may decrease the amount of DOS memory that is used.
If you are using a real-mode network driver, first try using the Windows 95 protected-mode network driver instead. If this does not work, try using the XMS version of the network driver, which is not loaded in conventional (DOS) memory.
See also System Doctor help search terms: memory, DOS memory, alarms.