What We’re Doing to Respond to Coronavirus
Quick note: This may seem like just another “An Important Message for Our Customers,” but we promise: it’s not.
Instead, we wanted to:
- Provide a list of resources we’re creating to support you.
- Share the internal memo that Ayman, the AppSumo CEO, sent with the specific offensive & defensive strategies we’re deploying to keep AppSumo above water in light of COVID-19.
Because man, these are super anxious, uncertain times.
Loved ones are losing their jobs in record numbers; people are sick; adults and kids are cooped up at home; and we’re all (rightfully) big-time germaphobes now.
To combat uncertainty, our hope is that you can use these resources to plan your own business strategy. That way, you’ll be able to protect the sustainability and cash flow in your life and business.
What AppSumo is Doing to Respond to Coronavirus
Resources for Hustlers
When this pandemic ends, one thing is extremely clear to us: We want AppSumo to be stronger and more successful than ever—and we want YOU to be stronger and more successful than ever.
That’s why we’ve created AppSumo’s #RecessionProof Hub with everything you need to maximize revenue, hedge losses, and innovate your biz strategy during this time.
Here are 3 FREE resources you’ll find in the hub:
- $1,000,000 Software Fund for Brick-and-Mortars
- Remote Work Academy – Expert Interview Series
- Suddenly Unemployed by Coronavirus? Join Noah’s FB Group
Despite the difficulty of this time, business opportunities are emerging amid the chaos. We want to support you as you pivot, hustle, and grow. Successful companies are going to be built out of today’s ashes.
If you can grow now, there’s no stopping you once this crisis has passed. We’re here for you, Sumo-lings—please share your questions, stories, and wins with us in the AppSumo FB Group.
Now we’ll hand it over to Ayman:
Ayman’s AppSumo Team Memo Re: COVID-19
I hope this memo finds you well and healthy. Just wanted to send out a quick notice as a recap to my discussion on Tuesday.
It goes without saying that we are living in unprecedented times. This Corona pandemic has literally flipped the world upside down overnight. As a leadership team, our number one responsibility is to you and the business and we have been closely monitoring how this whole situation impacts AppSumo.
The good news is that revenue is doing well and I have no doubt that if we do our part we are poised to thrive in this environment. Why?
–We are digital. 100% of our revenue comes from our online store. We don’t have to account for Brick and Mortar shutdowns impacting our ability to transact.
–We are solving very relevant problems. Because of above, there are more people now than ever online and looking for ways to start their business, save their business, or grow their business – stuff we all specialize in.
–We’re profitable and cash flow positive. Unlike a VC backed business that relies on a healthy funding environment to make their rent payments, we dictate our destiny. We decide how successful we want to be. We are 100% backed by our customers and the only measure of success is how much we can help them.
The unfortunate news is that other businesses have not been as fortunate. Our favorite restaurants are closing, our friends are getting laid off, and I’m watching my friends have to make very difficult decisions like laying off friends or even closing down completely. Because of that, we are being incredibly careful with every decision we make moving forward and doing whatever we can to make sure that never happens to us.
If you can’t see around the corner, you have to go slower.
As part of this initiative to go a little slower, we’ve been mostly focused on two major levers:
Two Levers to increase cash Flow:
Lowering Costs: At a high level, this proactive plan consists of:
- Implementing a hiring freeze and holding on future hires
- New tools and technology purchases are on hold. We are negotiating some contracts to reduce expenses with current vendors where we can.
- Reducing paid marketing spend
- Cutting or reducing our hours with several contractors (already notified)
- Renegotiating our rent
Maximizing Revenue: Additionally, we are taking measures to be proactive about our revenue and pulling cash flow forward:
- We’re bringing back discounted gift cards for a limited time
- We’re working with staple tier 1 deals to help businesses that are cutting their subscriptions
- Rolling out a Recession Proof hub and driving traffic to this page
I think if we focus as a team on these two levers – Reducing Costs and Maximizing Revenue, there is no reason we don’t come out of this stronger than ever before.
I understand that all of this uncertainty is unsettling. That’s why we as a leadership team are being overly proactive to maximize our buffer and protect us from swings in revenue.
Leadership is about providing certainty in uncertain times. Let’s give our customers and partners the certainty they crave through what may be the biggest entrepreneurial opportunity in the next few months.
This is a strategic inflection point and AppSumo, and us as a team, need to do everything we can to make sure this opportunity does not slip past us. We are extremely well-positioned to help those in need through these times.
If the past is any indication, a recession is a time when new businesses flourish. We need to be empowering new entrepreneurs to take advantage of this moment and start their business with the support of AppSumo. The future of the world is going to change through entrepreneurship. Let’s help more hustlers grow now than ever before.
Thank you once again for all your hard work. Let’s help and look out for one another. We will make it through this stronger than ever. As always, don’t hesitate to reach out.
CEO @ AppSumo
Organize your expenses with our framework
The pandemic has prompted all of us to rethink how we approach our finances, both business and personal. In order to get a better sense of where to divert costs and cut back, we’ve organized our expenses within this phase-based framework. We invite you to use this template to enter your own expenses and optimize your budget.
Click here to plug in YOUR expenses using our framework!
We’re here for you.
That’s why we’re doing everything we can, internally and externally, to keep delivering the software deals, freebies, and hands-on content that will help you during this crisis. Our leadership team continues to meet daily to keep tabs on our real-time metrics, in case we need to switch to Plan B or pivot in any way.
Most of all, our main goal is to help you succeed during this time. To see an updated view of all the incredible resources, webinars, blogs, videos, and talks from Noah and the entire AppSumo team, find us at #RecessionProof Hub.
Go get it, Sumo-lings. We love y’all.