Submitted By design79
Slide #1 Case Overview * 17 year old runs a web-based business * Customer base of over 6000 * Answers over 100 tech support e-mails per day, while remembering to do homework at night * $40,000 per year salary * Weina Scott, a senior in high school runs a website called Switchpod * Users can share video and audio as downloadable podcasts. * Podcasts are multimedia digital files made available on the Internet for downloading to a portable media player, computer, etc. * Switchpod was founded by Weina and her 16 year old friend Jake Fischer * They met on a message board dedicated to website hosting * They soon agreed to create Switchpod and before they knew it they were receiving 300,000 visitors a month * Their success caught the eye of the owner of Wizzard Software, Chris Spencer * Chris chose Switchpod to help push his text-speech software * Not long after that he bought the company for $200,000 in stock options from Jake and Wiena * Jake and Weina are now the CEOs of Switchpod and both make $40,000 a year salaries * Chris stated that he “would love to have a ton more workers like them” * Both the teens have learned a lot from the buyout * How to be more of a manager type * How to overcome technical hurdles * Understand the need for more credibility/It’s now a public company
Consultant Recommendations * They are successful for the following reasons * Their age –They were able to see a need in their age group and created something to fill that need * Podcasts are huge and their timing was impeccable * Success depended on the buyout * Other companies would have smothered them if they didn’t grow fast * They needed a business model and plan that an experienced business owner would be able to provide to get them to the next level * Money needed to be…...