Energy Newsletter project : final report

Abstract

Armenia recently faces energy crisis resulting from the breakdown of the former economic system, blockade by Azerbaijan and Turkey, and the inherent inefficiencies of old technologies. To help to overcome the crisis many foreign countries are offering their help through different energy programs and mechanisms. They, however, discover substantial difficulties with information availability and communication in Armenia. Information availability is the problem for local organizations as well. Most countries have different publications focused on energy issues, but Armenia does not have any yet. Obviously, the idea of some energy information source creation resides for a long time. Our client, Harutiun Topsacalian, USAID\IDEA came up with the idea of Energy Newsletter establishment in Armenia and order the group to conduct feasibility study and prepare the business plan for the new business start-up and, also, to submit first prototype of the “Energy Newsletter”. In fact, the Energy Newsletter project began its implementation almost month ago. It was not planned by the group and undoubtedly, this is an another achievement of the group. The purpose of the Energy Newsletter is to establish good communication set up, to provide energy sector and related to it organizations and people with timely and important information. This newsletter planned to be in three Languages (Armenian, English and Russian). “Microsoft publisher 2.0”, which has wide possibilities and designed mainly for such kind of publications and allows to make high quality copies, is used for the newsletter publication. Newsletter will be 3-colored. However, the resulted costs are not deviated much from an ordinary black and white newsletter publication costs and completely justified by the quality, which, we believe, will attract and please readers. Market research was conducted by the group, which was carried out through questionnaires distribution, personal interviews and telephone calls. Sample population was designed by nonprobability method of selection: Judgment Sampling. Research revealed high need in such an information source for energy sector, which has great strategic importance for the development of Armenia. That is why even if it takes long to reach positive cash flow, this business is worth to start for two reasons: to provide energy sector with timely and important information and establish a new market. When the economic situation in Armenia is reflected and the population is capable to pay market price for the newsletter, the company will have already its market share and begin making profits. So, it is better to sacrifice now, and succeed in the future. Nevertheless, there are still possibilities to improve financial position even earlier by means of business diversification and newsletter introduction to the foreign markets (see Section XIV). In addition, to start this business the company needs $15’530 initial investment, good location (Center of the city, permanent power supply, good telephone communication lines) and professional management team. Detailed financial analysis reader can find in sections below, tables and exhibits are provided in Appendices, documentation is attached.