To make a “Cool idea” into a sustainable business – you need a proven market

Duncan Ledwith, international market validation expert, says it best:  “Brainstorm, don’t daydream.”  Though all of us at the ICEHOUSE like to visualize the success that lies ahead for our start-ups, we know that there are certain challenging and unavoidable steps that need to be taken to achieve that success.  Having worked with over 70 start-ups, we have seen what it takes to transform “cool ideas” into successful start-ups: expert guidance, a broad network, an environment conducive to entrepreneurship, and access to money. 

“It must be obvious to all entrepreneurs that before they begin to spend time, money and effort on building a new business, or a new product for an existing business, that a clear and proven market opportunity exists for their proposed product or service.”
– Duncan Ledwith, ICE Accelerator EiR

Warning: stunts are performed by trained professionals. Don’t try this at home.

In the 90-day market validation programme you will:

• Put your idea on paper and learn how to best communicate it to others
• Spot your ideal customers and determine how to attract them
• Figure out how much money you need and have a plan to raise it
• Identify your competitors and prepare to outcompete them
• Understand the resources you will need and create a plan to obtain them

To discuss your business's suitability for our Market Validation Programme, please contact Ken Erskine, ICE Accelerator Director, +64 9 308 6213, k.erskine@theicehouse.co.nz.

FAQs

1. I know it’s a great idea- all my friends say it is- why do I need market validation?
2. I have worked in this industry for 25 years, why do I need an expert to tell me how to build a business in this industry?
3. I need to get my product to market quickly- I cannot afford the time nor the money to perform market validation.
4. How much does the Market Validation Programme cost and how long will it last?
5. My idea isn’t defined enough for the Market Validation Programme.
6. What happens after I complete the Market Validation Programme?
7. Be a part of something bigger than you.
8. What do I get from the Market Validation Programme?
9. How do I know if I’m the right fit for the Market Validation Programme?
10. What’s the difference between full time incubation and the Market Validation Programme?

1.  I know it’s a great idea- all my friends say it is- why do I need market validation?
There’s no doubt you’ve got a great idea- we’re not here to try to make it better.  We’re here to make sure you know how to best capitalise on your idea.  The difference between ‘idea validation’ and ‘market validation’ is that important thing called a market.  We will help you find it and make money from it.

2.  I have worked in this industry for 25 years, why do I need an expert to tell me how to build a business in this industry?
Familiarity with your start-up’s industry will help a lot- especially with credibility in the eyes of customers, partners, and investors.  Just as we are not here to ‘make your idea better,’ we do not expect to teach you about your industry. (Even though it’s likely our partners and experts may have information to add!) Our role is to make sure you advance on all fronts. With experts in marketing & sales, finance, capital raising, intellectual property, company branding, governance, and product development, we will enlighten even the most experienced veteran.

3.  I need to get my product to market quickly- I cannot afford the time nor the money to perform market validation.
We have two points to make:
First, if you’re lost and are running through the woods, you better be running in the right direction! We’d rather you not make mistakes for your competitors to learn from- one of them is making quick and unsupported decisions. Proper market validation will ensure you stay on the leading edge- not the bleeding edge.
Second, our most successful start-ups have spent an average of $500k and 4 years developing their businesses.  Three months and $10k will be trivial by the time you’ve hit the market. 

4.  How much does the Market Validation Programme cost and how long will it last?
The Market Validation Programme is 90 days and costs $10,000.  We have strict entry criteria and The ICEHOUSE also takes a small equity position in all businesses in the ICE Accelerator. Contact Ken Erskine on k.erskine@theicehouse.co.nz for more details.

5.  My idea isn’t defined enough for the Market Validation Programme.
The most common characteristic we see between our successful start-ups is not where their ideas began, it is how they manage the evolution from an idea to a business.  We’ve worked with starts-ups two years in the making and with start-ups with only an idea jotted down on a pad of paper.  The Market Validation Programme entails brainstorming, strategy creation, task identification, market feedback and development of networks  – stuff that start-ups at any level are suitable for and will benefit from.

6.  What happens after I complete the Market Validation Programme?
The Market Validation Programme will prepare you to go down the right path and to do so rapidly. You will leave with product development plans, capital raising plans, HR plans, branding plans… simply put, your work will be cut out for you.  Most of our start-ups choose to remain at the ICEHOUSE as incubator residents for further business development services. 

7.  Be a part of something bigger than you.
The ICE Accelerator works directly with the government, the University of Auckland Business School, New Zealand’s largest Angel Investment group, hundreds of start-ups, and many of New Zealand’s top corporations including Microsoft, Telecom, and Bank of New Zealand.  As a resident of the ICE Accelerator, you’ll be provided direct access and personal referrals to our network of high level and influential members in the New Zealand and international business community.

8.  What do I get from the Market Validation Programme?
After 90-days you’ll graduate with a ‘market need’ clearly identified and plan to capitalise on that need.  Every start-up’s growth plan varies based upon the lead Executive in Residence’s guidance.  Generally, deliverables from the programme include a competitive analysis, a gap analysis, one-year strategies and tactics, and a funding and exit plan. 

9.  How do I know if I’m the right fit for the Market Validation Programme?
We’ve worked with an online gift store, a retailer of camera technology, and a developer of wireless power solutions. So, it’s difficult to categorize the type of start-ups we are looking for.  However, we expect the following of our residents:

• To have the ambition to become an international company
• To be coachable and to commit a significant amount of time towards the start-up
• To be able to pay programme fees as set in the Residency Agreement

10.  What’s the difference between full time incubation and the Market Validation Programme?
As our Director of Start-Up’s, Ken Erskine, puts it, the goal of Market Validation is either “full acceleration or emergency stop.”  In other words, the Market Validation Programme’s purpose is to determine if a market does or does NOT exist. If it is determined that a market does NOT exist, we will recommend, and provide guidance for, a swift exit from the start-up.  If a market does exist, we can assist it to get to market fast. Full incubation is for start-ups with proven markets that need business development support to capitalise on those markets. 
 

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