Submitted by: Submitted by rallen
Views: 25
Words: 3024
Pages: 13
Category: Business and Industry
Date Submitted: 03/16/2015 12:52 PM
THE RUPTURE SEAL OPPORTUNITY
SUBMITTED TO: Michelle McBane
SUBMITTED BY: Rodney Allen
SUBMITTED ON: December 1, 2014
CENT601
RYERSON UNIVERSITY
Glenn Cox is a former RCMP officer who four years ago began a company named Zengo Inc. Zengo produces a product called The Rupture Seal. It is a solution used for stopping spills easily and immediately. When he was an officer he would respond to scenes where he saw leaks occurring and he could nothing about it. The Rupture Seal has the ability to stop and seal leaks for various sizes and chemicals to allow time for the rupture to be fixed. The Rupture Seal is marketed as an environmentally safe product since it gives first responders the ability to stop environmental hazardous leaks. Other benefits of sealing a hazardous leak quickly include: lower cleanup cost to the municipality and savings to the owner of an expensive chemical. Glenn values Zengo Inc at approximately $2.5M and was seeking $500,000 for 20% equity so he can quickly scale his company. The Rupture Seal product consists of two lines, one for non-marine use and one line is for marine use i.e. sealing a leak on a boat.
The product has been patented in Canada and the USA and Glenn has also has filed patents around the world as well. With an average unit cost $18.50 and a kit of three seals $110, the margins for this product show just how much earning potential this product has. The Rupture Seal has enjoyed some early success with two year sales totaling $352,000 CND. Glenn believes he can grow his sales to $1.6M over the next 12 months due to acquiring two new major customers including Trans Ocean and The Canadian Navy. There are other indicators of viability which include some views observed in the journal article Three Views of Entrepreneur Opportunity. This opportunity would be under the allocated view (Sarasvathy, Dew, Velamuri, & Venkataraman, 2003), primarily because there’s a Focus on System which is essentially the business...