Validation expert to give masterclass

WNT Ventures chief executive Carl Jones is looking forward to hearing from market validation expert Peter Simon when he comes to Tauranga.

Bay of Plenty technology incubator WNT Ventures and Callaghan Innovation are bringing Peter Simon, Boston-based founder of the Simon Management Group, to New Zealand to give a masterclass in doing market validation.

"We're pleased to be able to partner with WNT Ventures and Callaghan to bring this opportunity to Bay of Plenty entrepreneurs," said Jo Allum, a co-founder of Venture Centre, which will host the Tauranga session. There will also be workshops in Hamilton and Auckland.

"One of the most important processes we step people through at Venture Centre is idea validation," said Ms Allum. "This is a chance for local entrepreneurs to learn idea validation from one of the world's experts."

Prior to founding Simon Management Group in 1989, Mr Simon worked for more than 15 years as a senior manager and consultant for technology-based companies. At Bain and Company, in Boston and London, he worked as a consultant and manager on both strategy and implementation projects, and he formerly served as general manager of business applications at Lotus Development Corp and as vice president of marketing at Banyan Systems.

His services are used by successful entrepreneurs such as Dr Rob Adams, author of If you build it, will they come? who is on the faculty of the University of Texas at Austin. A former software executive, entrepreneur and fund manager, Dr Adams has served on many corporate boards and has founded or financed more than 40 companies that have launched more than 100 products.

WNT Ventures chief executive Carl Jones said he got in touch with Mr Simon a year ago through Dr Adams, who has visited New Zealand a couple of times.

"Every single company Rob invests in goes through this process, otherwise he won't invest," he said. "I wanted to get Peter over because he is the one who does the validation for Rob. And that's the missing piece for New Zealand entrepreneurs."

Mr Simon is in Australia this month and agreed to tack a New Zealand leg on to his trip, and Callaghan Innovation had been very supportive in funding the travel, he said.

Idea validation involves a two-step process. Phase one required identifying about 100 potential customers and segment decision-makers and questioning them on market problems and how they were currently being solved.

"At the first stage you don't talk about your product or service at all," said Mr Jones. "It's a way of deepening the understanding of that particular market segment. Then you take a step back and look at your product and service."

The second phase involved quantifying and targeting those who would potentially be the best customers, adjusting the product or service to the market's requirements if necessary, then going back to the sample group to fine tune the acceptability of the idea and proposed price point.

"The real value of Peter's approach is that you're not just validating your market, you are identifying your first customers as well and a lot of them become your biggest customers."