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Validation Assignment:

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Cloud Nine Spa

Presented by:

Yousef Atieh 300060540

Nathan Cheng 300144595

Meagan Frendo 300154544

Liana Miles 300111210

Natalie Ratkovsky 8631867

Haarani Venkatesh Babu 300124767

ADM 3313:

New Venture Creation

Professor Sandra Schillo

Telfer School of Management

University of Ottawa

Fall 2021

Nat and Nathan presenting –

*(Total not to exceed 5 pages)

· Document Body

· Appendices

*Avoid using pronouns

*APA format

1. Introduce the opportunity – Nathan

We believe that the Canadian market of cannabis business has a lot of potential beyond the typical cannabis store. Our team collectively believes that the combination between the use of cannabis and the spa experience allows our customers to reach a new kind of relaxation that has never been done before. With Canada slowly recovering from the pandemic, we believe our cannabis spa idea is a great opportunity to invest in. A lot of people were working from home during the pandemic and it is a stressful environment to be constantly working at. Therefore, we believe this is the perfect timing for us to develop this opportunity. (Not finished, just brief idea for now).

2. Validate the Opportunity

a. 2.1 – Haarani

As the team came up with an idea for this class, the immediate reaction to the idea all the members w

· Is there anything that already exists like our business idea (use gain/pain or a gain creator/pain reliever to explain)

· Are there ways to improve on the existing product?

· Can you offer value to the business already producing it?

· Could the market be satisfied better?

· If not, why couldn’t I find anything

· Would customers simply not buy it?

· Is there a product/service that fulfils the customers’ gains / pins in a different way?

· Are there supply issues?

· Is it too expensive to produce?

· Can you find any other fatal issues?

· Can you find a solution that would not face the same issues?

· Can you develop a solution that specifically addresses the issues you found?


Regarding the first round of customer validation for the business, Cloud Nine chose to start by surveying those which members knew through social media and direct messaging. The first survey was oriented towards testing whether or not people would be interested in a luxury cannabis-oriented spa experience for mental health and wellness. The survey compiled 5 questions in a multiple-choice format. The first question asked if participants were using cannabis in any form. This question was important as it indicated if participants were already interested in cannabis products or not. The second question asked what form of cannabis participants normally consume. This question was to show if participants are typically consuming through any specific type, as the salon would be mostly set towards using topical or edible forms. The third question asked for what reason a participant is consuming cannabis. Seeing as Cloud Nine Spa would be focused on mental health and wellness, alternative healing and healthier management of stress and chronic pain, it was important to know if participants are using CBD for those reasons. The fourth question asked if the participants commonly use spa or salon services. As the Cloud Nine business would be an integration of cannabis and a luxury spa, it is important to know that those using cannabis also have interest in visiting spas. The fifth and final question asked if the participants would be interested in a CBD-integrated luxury spa experience. This question would identify quite directly if consumers would be interested in the integration of the two elements. Only 17 people answered the survey; 9 reported not using cannabis while 8 reported usage. Of the 8 that did use, the most reported answers were smoking and edible for stress and recreation, who do not frequent spas, but would be interested in a CBD-integrated spa experience (See Appendix #-#). The survey did meet the success criterion in showing that cannabis users would be interested in a CBD-integrated luxury spa experience, however the number of responses was far too low and too direct. To make sure that our survey was not swayed by the sample size, and the directness did not produce any conformity bias, the same survey was conducted again through a Google form. It was circulated widely through classes and the public to make sure the previous survey was accurate. This time it received 29 responses. The results concluded that 55.2% of participants are using some form of cannabis (See Appendix 3). 61.1% used through smoking and 55.6% used through edibles (See Appendix 3). The main reason given for the use was recreation at 77.8% followed by stress and anxiety at 66.7% (See Appendix 3). Of those that used, 21.1% reported regularly attending spas or wellness retreats, while 78.9% reported interest in a CBD-integrated spa experience (See Appendix 3). This survey confirmed that there are cannabis users that would be interested in CBD-integrated spa experience. In the third round of customer validation, a website was created outlining the business and listed a contact email should anyone have questions. Currently, there has not been any interaction with that email. SITE A Facebook page for our business was also created, which has received some but little interaction. SITE

b. 2.3 Refinement and Solutions – Nat

(javelin board)

· Identify customer, problem, and solution

· viability of the business and least amount of data available

· Define experimentation methods and success criteria (i.e. Interview, Pre-sell, Concierge)

· Get out of the building and collect data

· Analyse results and learn – Focus on key learnings that will drive your next experiment

· Take decision to pivot or persevere

· Pivot, if results do not meet success criteria -> change customer or problem hypothesis

· Persevere, if your results met or exceeded success criteria -> brainstorm more risky assumptions and define more experiments









Riskiest Assumption

Method % Success Criterion

(Get out of the building)

Result & Decision


c. 2.4 – Meg and Yousef

3. Propose a Business Model – Nathan

Appendix #


Appendix #

Appendix #

Yes: 0% No: 100%

Appendix #

Yes: 100% No: 0%

Appendix #

Appendix #

Appendix #

Appendix #

Appendix #

References In APA

Miles, L. et. al. (2021, October 15). Cloud Nine Spa. Cloud Nine Spa.

Babu, H. et. al. (2021, October 15). Facebook. Cloud Nine Spa.

Personal Ethics Statement

Group Assignment: By signing this Statement, I am attesting to the fact that I have reviewed not only my own work, but the work of my colleagues, in its entirety. I attest to the fact that my own work in this project meets all of the rules of quotation and referencing in use at the Telfer School of Management at the University of Ottawa, as well as adheres to the fraud policies as outlined in the Academic Regulations in the University’s Undergraduate Studies Calendar Academic Fraud Webpage. To the best of my knowledge, I also believe that each of my group colleagues has also met the rules of quotation and referencing in this Statement. I understand that if my group assignment is submitted without a signed copy of this Personal Ethics Statement from each group member, it will be interpreted by the Telfer School that the missing student(s) signature is confirmation of non-participation of the aforementioned student(s) in the required work.

Atieh, Yousef

Last Name, First Name


Student Number

Yousef Atieh


3 November, 2021


Cheng, Nathan

Last Name, First Name


Student Number


3 November, 2021


Frendo, Meagan

Last Name, First Name


Student Number



3 November, 2021


Miles, Liana

Last Name, First Name


Student Number

Liana Miles


3 November, 2021


Ratkovsky, Natalie

Last Name, First Name


Student Number

Natalie Ratkovsky


3 November, 2021


Venkatesh Babu, Haarani

Last Name, First Name


Student Number



3 November, 2021


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