Ticket Scalpr

3744 N Clifton Ave

Chicago, IL 60613
Phone: 847-544-8534
E-Mail: Stephen Vyskocil
Web: http://ticketscalpr.com

Interoffice Memorandum

To:
From:
CC:
Date:
Re:

Patrick OBrien
Stephen Vyskocil
Professor Amy Newendorp
7/19/2015
Regarding Evaluation of Operations

Thank you for the opportunity to conduct an evaluation of your operations. My initial
assessment indicates that there are several opportunities to improve efficiencies which
should lead to better margins, improved client satisfaction, and sustainable business
growth.
Let's begin with a brief overview of your operations. The company Ticket Scalpr was
incorporated in October of 2012. The concept was to create an app that would bring
customers measurable cost savings on ticket purchases while improving individuals
overall experiences when attending concerts at a variety of venues, various sporting
events, and theater productions. The Mission Statement, while not formal, is to be the
best fan-to-fan ticket marketplace.1
Going forward, it is the companys intent to raise new capital through the use of venture
capitalists and individual private investors. The company will also continue to bring in
revenue through ticket sales as well as freelance work.2
Primary competitors of Ticket Scalpr include, but are not limited to, Ticketmaster.com,
Stubhub.com, Vividseats.com, Craigslist.com, and Seatgeek.com, all of whom own a
significant portion of the ticket marketplace. In addition, any company encompassing
the mobile space such as Gametime and Applause, as well as smaller apps.3
Key large customers include Ticket Evolution, the companys primary ticket provider, as
well as a small sub-set of regular customers who routinely purchase tickets and are
referred to in the business as "Whales".4

1
2
3
4

O'Brien, Patrick. "Ticket Scalpr | Buy and Sell Tickets at the Stadium." 2013. Accessed July 15, 2015. http://ticketscalpr.com.
O'Brien, Patrick. "Regarding Evaluation of Operations." Interview by author. July 15, 2015.
Ibid.
Ibid.

While Ticket Scalpr's app is constantly evolving, the company does guarantee fans 100%
ticket authenticity protection through the use of a complete "money back" promise.
There are over 2 billion dollars worth of tickets including both e-tickets and paper tickets
(tickets that need to be shipped), as well as fan-to-fan tickets. Ticket Scalpr is able to
provide the type of ticket needed, a map to where the ticket can be picked up, and an
image of the ticket, creating an Uber like experience for their customers. Included in all
this is a "price match" guarantee policy to the customer. Moreover, the company has a
philanthropic side that includes a variety of giveaways, and the awarding of discounted
or free tickets. All this is done while striving to bring their customers the cheapest
tickets available in the marketplace.5
At the present time, Ticket Scalpr has a very flat hierarchy as its founder is not only the
CEO, he is also the CFO, CMO, COO, and CPO. This single individual is currently working
with two independent system developers and 10 interns.
While still in its infancy, the company's direction has pivoted several times. At its launch
the companys rather oversized goal was to be the best ticket-scalping app in the world.
Initially customers were only allowed to buy tickets three days before an event. That
short time frame was then enlarged to seven days, and eventually it grew to be three
months. The app has also evolved to service a more traditional marketplace. The target
market became more drivendriven by scalping tickets and to become more attuned to
selling them. Due in part to legal concerns, scalping itself had become one problem
within the bigger picture.6
The future of the company centers on its ability to help people sell tickets in a simple yet
efficient manner, instead of trying to create an entirely new marketplace. Having said
that, I believe there are several areas within the operation that if addressed, could help
the company meet that goal and eventually become financially stable and attractive to
investors.
Let's look primarily at staffing. The current operation relies very heavily on its founder.
This person is taking on all key roles in the management of the company. While he may
have the ability to take on each of the senior officer roles, doing so spreads him too thin,
and can result in errors and missed deadlines as one decision builds upon the next and
time is money. Bringing on a CFO to oversee the management and investment of the
companys funds is critical, as is bringing on a chief marketing officer to create a formal
mission statement, and guide the companys efforts in securing a place within this
somewhat crowded and competitive entertainment space. According to Limeade CEO
Henry Albrecht, as reported on June 29, 2015, its sad when people think they have to
work 110 hours a week because theyre in a startup. Thats really short-term thinking
and its not sustainable.7
5 OBrien, http://ticketscalpr.com.
6 O'Brien, Patrick. "Regarding Evaluation of Operations." Interview by author. July 15, 2015.
7 Demmitt, Jacob. "Limeade CEO Henry Albrecht on Signs That You're Working Too Many Hours - The Business Journals." The Business
Journals. June 29, 2015. Accessed July 21, 2015. http://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/06/tech-ceo-

Other important roles such as graphic design, programing, and IT support, may be
gained through the use of contract labor. However, these positions should be staffed with
full time employees as the company grows and has the funds to meet these payroll
needs.
The use of summer interns not only provides an abundance of free labor, it is also a great
source for creative minds and freethinking individuals to bring those ideas and energy to
the company. Managing 10 interns can be overwhelming though, so thought should be
given to hiring a Chief Information Officer who can take on that task. This person could
provide additional direction to the interns, guiding them through the maze of training
that any new hire would go through, and harnessing the variety of talents that they bring
to the organization. As cited on the Stanford Graduate School of Education website, An
internship can be a great way for managers to advance organizational goals while
mentoring aspiring professionals.
According to an online periodical written by Mr. Reeves from Forbes Magazine, hiring the
right team members can be critical for any entrepreneur in a start-up like Ticket Scalpr.
Mr. Reeves speaks to the benefit of temporary employees such as interns because you
can always Make the job permanent. Your employees market your business, and can
be seen as its Public face. Ways to go about hiring new employees may be to take an
ad out in a local newspaper, post an ad online, or hire a headhunter, the former being
the least expensive and the latter being the most.8 Working with universities such as
DePaul to attract summer interns has many similarities to hiring temporary help with the
additional benefit of cost savings.

Taking the above steps would come at a cost. Yet the use of an outside Human Resource
management firm should be considered to help control those costs, make certain that all
workplace guidelines and labor laws are met, and bring additional efficiencies and
staffing discipline to the company.
Works Cited
Demmitt, Jacob. "Limeade CEO Henry Albrecht on Signs That You're Working Too Many
Hours - The Business Journals." The Business Journals. June 29, 2015. Accessed July
21, 2015. http://www.bizjournals.com/bizjournals/how-to/growthstrategies/2015/06/tech-ceo-signs-that-youre-working-too-many-hours.html.

signs-that-youre-working-too-many-hours.html.
8 Reeves, Scott. "Small-Business Staffing Suggestions." Forbes. July 8, 2004. Accessed July 19, 2015.
http://www.forbes.com/2004/07/08/cx_sr_0708smallbizstaff.html.

"Internships." Internships. 2014. Accessed July 26, 2015.

https://ed.stanford.edu/careers/internships.
O'Brien, Patrick. "Regarding Evaluation of Operations." Interview by author. July 15, 2015.
O'Brien, Patrick. "Ticket Scalpr | Buy and Sell Tickets at the Stadium." 2013. Accessed
July 15, 2015. http://ticketscalpr.com.
Reeves, Scott. "Small-Business Staffing Suggestions." Forbes. July 8, 2004. Accessed July
19, 2015. http://www.forbes.com/2004/07/08/cx_sr_0708smallbizstaff.html.