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When you’re scaling fast, one wrong move can crash the business.
In his six years as CEO of AppSumo, Ayman Al-Abdullah grew the company from $3M to $85M in annual revenue. But along the way, he made a mistake that nearly sent the entire operation into bankruptcy.
It was Thanksgiving, and Ayman had just spent $1M on inventory for a new initiative.
The only problem?
He didn’t have full visibility into the company’s finances.
“I remember thinking, Did I just put AppSumo out of business?” he said.
For hours, Ayman pored over cash flow reports, trying to figure out if his misstep would bankrupt the company.
Thankfully, AppSumo survived—but the experience became a turning point in how he managed the business.
Here’s what Ayman learned (so you don’t have to):
Cash is everything: Scaling requires capital, but overspending without understanding your cash flow can sink even the most profitable businesses. Ayman says: “Your cash is your gas tank. If you’re not tracking it, you’re flying blind.”
Growth isn’t always good: It’s tempting to chase growth at all costs, but reckless scaling can lead to long-term problems. “I’ve seen companies grow themselves into bankruptcy by overinvesting upfront,” Ayman explained.
Get optics early: Ayman now believes every business—no matter the size—needs a clear view of its finances. “The first thing I tell new entrepreneurs: Get a great bookkeeper and know your numbers.”
What can we learn from Ayman?
Cash flow > profits: Even if your business looks successful on paper, poor cash flow can be a silent killer. Are you managing your cash cycle effectively?
Track your investments: Every dollar spent should drive measurable ROI. Do you have visibility into where your money is going—and what it’s returning?
Embrace mistakes as lessons: Ayman’s near-miss shaped his leadership style. Are you using setbacks as opportunities to grow?
Ayman’s story is a reminder that even seasoned leaders make mistakes—but with the right lessons, those mistakes can fuel your success.
Want to hear the full story, including the other hard-won lessons Ayman learned at AppSumo?
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