IUBAT-International University of Business Agriculture

and Technology

Assignment on: Creating my own business

Submitted to
Hasan Moudud
Senior Lecturer
CBA, BBA program

Submitted by
Umama Tasnim
ID: 20102002
BUS-101
Section- A
Submission Date:
27 December,2020
 Biofloc Fish Firm

My Business Acquaitance:

Israeli Professor “Yoram Avnimelech” is one of the founders of Biofloc

technology.

Mainly biofloc technology is a technique of enhancing water quality in

aquaculture through balancing carbon and nitrogen in the system. The
technology has recently gained attention as a sustainable method to control
water quality, with the added value of producing proteinaceous feed in situ.

Reason Behind Chosing Biofloc:

Biofloc systems reduce the spread and effectiveness of pathogens while

simultaneously improving fish health through better water quality and
bolstered feed availability. As such, biofloc systems can give us a natural
way of producing more seafood sustainably, while concurrently improving
farm profitability.

Biofloc Fish Firming

Production Factor or Resources of my business:

I should divide the factors of production into four categories: land, labor, capital,
and entrepreneurship.

• Natural Resources (Land): I selected my land at 17/2 alubditek, Kalibari

Dhaka-1206.
• Human Resources (Labor): Who are the worker of Biofloc fish firming .
• Capital: How much money I will invest in my business.
• Entrepreneurship: I’m the entrepreneur of my business.

Capital of my business:

Sl Details Money
1 Cash 50000/=

2 Land 50000/=
3 Tank & Motor 50,000/=
4 TDS Meter 5,000/=
5 PH Meter 6,000/=
6 Weight Machine 7,000/=
Total 218000/=

How can I generate my firm’s profit:

Profit is the difference between the revenue and the expenses is the profit (or
earnings) generated by the business.

• Revenue-Expenses = Profit

Conditions that can affect my firms profits:

• Demand of the product or services

 • Offering advantages over competitors
• Efficient system for production to minimize expense
• Profit motive influenced by governments

Stakeholder of my business:

• Owners
• Creditors
• Employees
• Suppliers
• Customers
Stockholder of my business:
As a owner I’m the stockholder of my business.

Environment Of my Business:
• Social Environment: Social Environment mainly Depends on customer
characteristics.where I want to run my business, I have to findout customer
behaviour ,religion, sexual orientation,which kind of food they like
most,their demand in that place.
• Industrial Environment: The industry environment represents the conditions
within the firm’s industry to which the firm is exposed. The conditions of
my bioflock fish firming can be vary according to the demand and the
competition.
• Economic Environment: Employment/unemployment,Income,Inflation,
rates,Tax rates,Currency exchange rate,Saving rates,Consumer confidence
levels,Recessions afeect the economic environmrnt. I have to know the size
of the available market in my business area, how many people are doing
boifloc fish firming business,who are the competitors of mine ,those all are
affect on my biofloc business.
• Global Environment: The global environment may affect all firms directly or
indirectly. Some firms rely on foreign countries for some of their supplies or
sell their products in various
countries.But I’m willing to sell my fishes only into our country.
 Business Ethics and Social responsibility

As a businessman I should practice business ethics, which involves following a set

of principles when conducting business..I should be honest & responsible for my
business. My firm has some social responsibility such as responsibility to
customers, to employees, to the community, to the environment, to society, to
creditors, and to the stockholder.

• Responsibility to Customers: As a businessman I have to make sure the

customers safety;they always want good quality product in reasonable
price.I should give them Correct information about my bioflock firms
fishesh.
• Responsibility to Stockholders: As a owner of a business I should Proper use
of a capital,to manage business effectively,provide actual information to
others.
• Responsibility to Employees: I should make sure about employee’s safety in
my firm & Proper Treatment by other Employees where they work.
• Reponsibility to Creditors: I should make a good relarion to creditors ,
paying interest at time & give all information of my firm.
• Reponsibility to Community: I need to adress social problems & solve
them,I wil help during natural deases,I should proper use of economic
power.
• Responsibility to the Environment: I’m also responsible for environtment to
produce fishes.I should follow those way which is not harm full for
environment.

Assessing Economic Conditions

Impact on economic growth:

Economic growth is an increase in the production of goods and services in an
economy.Increases in capital goods, labor force, technology, and human capital
can all contribute to economic growth.
GDP-(Gross Domestic Products):

Economic growth means to say that an increase in real GDP.Economic condition

mainly depends on GDP.To depends on GDP it can be strong or weak sometimes.
when GDP is increasing, the economic growth will be strong & when GDP is
decreasing, the economic growth will be weak.It will be also affect my biofloc fish
firm.

There ae three types of indicators of economic growth:

o Level of total production

o Aggregate Expenditure
o Level of Unemployment

Economic Inflation:

Inflation is the increase in the general level of price over a specific period of time.

There are two types of inflation:

• Cost push: The situation when higher prices charged by firms are caused by
higher costs.For my business I need buy raw materials such as
molasses,probiotic,organic salt sodium to produce fish from firmer ,If they
increase the rate of materials I also should be sell my fish at high price.
• Demand Pull: The situation when prices of products and services are pulled
up because of strong consumer demand. For example when my customer
demand is increase for my product I will increase the rate of my product for
more profit.

Impact of Interest Rates:

• Interest rate affect my firm’s expenses: when the interest rate will high, I
will not take the loan from bank I will try to minimize my firm’s expenses.
• It will affect my firm’s expansion: If the interest rate is high then it will quite
impossible to expand my firm.
 • It will affect my firm’s revenue: High interest affect the revenue of a
firm.For example if i have to pay high rate of interest then my revenue will
decrease.
• And also on housing crisis: When the interest rate will increase then
customers will not be able to buy a home or will not take a loan to build a
house.

How I can determine the market price:

• Demand schedule for a product: The demand curve mainly shows the
relation between quantity demand & price of a product.When Peoduct price
is increase then demand will be decrease & when price will decrease then
demand will be increase.For different type of product, demand curve will be
different.

Fig: Demand Curve

• Supply Schedule for a Product: The supply curve mainly shows the relation
between quantity supply & price of a product. When Peoduct price is
increase then supply will also increase & when price will decrease then
demand will also decrease.For different type of product, supply curve will be
different.
 Fig: Supply curve

• Interaction of Demand and Supply: Equilibrium point mainly interact

demand & supply curve. Equilibrium point is where customer demand (Buy
price) & Supplier demands (Sale Price) are same.

Fig: Equilibrium point

• Consumer's Income Affects Market Prices: Customers Income can directly

effects market price. For example if my business areas customers income is
high then they they will purchase more fishes from my firm & their income
low or poor then they will purchase limited products form me.

Policy of Governent:

• Monetary Policy: This policy is money supply related policy such as

inflation, Bank interest rate, and money circulation.
• Fiscal Policy: Fiscal policy is related with expenditure tax, subsidy which is
control by government.
 • Summary of Government Influence on Economic Factors
• Dilemma of the Federal Government

So,for properly run my business I have to maintain the policy of government.

Business Ownership
I started this biofloc fish firm by myself I have no partner in my business.So easily
I can say it’s a sole proprietorship business.

Mainly, A business owned by a single owner is referred to as a sole

proprietorship.The owner of a sole proprietorship is called a sole proprietor.So I’m
the sole proprietor.Therefore, I should be willing to accept full responsibility for
my fish firm.

As sole proprietorship business, My firm has some advantages & disadvantages:

Some Advantages of My Business:

• All earnings of my fish firm will goes to me.

• My organization structure is easy
• Complete Control
• My Business tax is lower than others.

Some Disadvantages of My Business:

• All losses of my firm will goes to me.

• My Liability is Unlimited
• My Fund is Limited
• My Skill is also Limited
 Entrepreneurship & Business Planning
Mainly who are the initiator to start a business to do the transaction to generate
profit they are the entrepreneur of business. So, I am the entrepreneurof my
biofloc fish firm. As an etrepreneur I have some special characteristics.
Entrepreneur Profile:
• I’m an initiator.
• I should be a good planner
• I should be more risk-taker than others.
• I should be creative than others.
• I should be a good opportunist.
• My thinking level should be advanced than others.
• I should active at my work.
• I should keep patient and honest.

These are the characteristics of an ideal entrepreneur. Adhering to all these features
will make easier for me to manage my biofloc fish firm and achieve my firms goal.

As an entrepreneur I have some advantages and disadvantages.So I should proper

use my advantages & try to overcome the disadvantages.
My Advantages:
• My firms all profits will goes to me.
• Business will be conducted according to my opinion.
• I have the freedom & decission making power as well.
My Disadvantages:
• All losses of my firm will goes to me.
• My Liability is Unlimited.
• I should have face more risk than other.

Assessing Market Condition:

• Demand: My firm’s fishes are more demandable in my business area. There

are lot of market & available fish seller & also nearby customer.
 • Competition: I have to identify that how seller are selling biofloc fish in my
business area.In my business area there is another fish firm. So that is my
competitor.
• Labor Condition: Labor condition of my firm is good.There are available
labour who knows well about biofloc fish & intrest to do this work.
• Regulatory Condition: Regulatory conditions mainly some rules &
regulation about establish business. Where i started fish firm there is some
rules by government & others. So i have to follow those rules for my
business.

Developing Competitive Advantages:

• Common Strategies: There are 4 common strategy in market. They are

Product quality, price,packaging & marketing.I Should maintain the quality
of my fish, balance the FCO & PH of water, I can sell my fishes at
reasonable price. I have to follow the common strategy of business.
• Competitive Advantage: Competitive advantage mainly is the advantage that
my company have & others company don’t have.In my business area there is
onother biofloc fish firm. So they are my competitor.So I can use different
way to sell my fishes. I can establish a website & sell through online.I can
produce different kind of fishes,i can maintain the best quality that will
attract the consumer & can sort my firm properly.
• Expense of a web-based business: If I want to sell my firm's fishes through
online then i have to establish a website.There are many of expenses of web-
based business. For example i need to be promote my product, sometimes i
need to be boost my post.
• Using SWOT Analysis: I should analyse the SWOT analysing. Fir example
SWOT is stand for strength, weakness, threats & opportunity. I will try to
find my weakness, strength, threats & opportunities.At first I should utilize
properly my opportunity & strength and try to overcome my weakness &
threats.

How I can developing a business plan:

• Organizational Structure: My Organization stracture is very simple Because

my busines is small business & I have not more department for my firm.
 • Production: My production is biofloc fish production what I produce to sell.
• Human Resources: I hired some employees who are expert to do work about
biofloc.

How I can manage the risk:

• Reliance on One Customer: If I rely on one customer it will be risk for my

firm. For example if my selected customers are not willing purchase fish
from me then there will be problems to sell.So I should have more customer
to avoid this risk.
• Reliance on One Supplier: When I rely on one supplier to purchase raw
materials then they have the berganing power & I have not.They can
Increase the rate of materials.So I should contact with more suppier for
avoidance this risk.
• Reliance on a Key Employee: In my biofloc fish firm there is some
employees & I do not rely on key employee.
• Exposure to E-Risk: If I want to sell my fish through online or website there
will some risk such as my information can be copied or hack.So I should
maintain the privacy & conscious about it.

Effective Management
Mainly who manages the organization & responsible for planing,Organizing the
task,leading the employee & controliing to achieve firm’s goal they are the
manager of that firm/company.

In My biofloc fishfirm I’m the owner & I have some employees.So there only I
who manage the all things of firm & my emploees help me to achieve my firm’s
goal.

Level Of Management:

There are 3 types of management :

(i) Top Management,(ii) Middle Management,(iii) Supervisor or 1st Line Manager

.
But in my firm I do the all thing such as decission making,organizing my firm,
leading my employees

Function of a Manager:

• Planning- As a manager I should be prepare my firm for future business

goal.
• Organizing- I should arrange all the resources that are needed to producing
fish and use those available resources to achieve the goal of my firm.
• Leading- I should influence my emplyees for doing work properly to achieve
the goal.
• Controlling- I should have to monitor and evaluate the task of my firm.

Integrate Management Function:

Now I’m showing how I can integrates the 4 function of management:

1.Planning

As aa manager I decided to
produce various kind of fish and
upgrade the machinaries.

2.Organizing

I should have know all the

information and manage all the
resources which are using to
producing different species of
fish in my firm.

After organizing I
shouldncommunicate the
reorganization to employees and
ask them to implement the new
production process.
 3.Leading

Now I should explain each

employee’s tasks required to
produce new tyoes fishes and
how to perform the tasks.

4.Controlling

I assess the expenses and sales

from producing new different
fishes every month. Determine
whether the new production is
successful. Monitor employees
to ensure that they are
completing their new
assignments properly.

Planning of my business:

• Mission Statement: If I design a plan for primary long term then I need to be
establish the mission statement.
• Strategic Plan:This is main business focus. The common strategies are
packaging, Pricing, quality & marketing. If I want to control them properly
then i should follow the strategic plan.
• Tactical Plan: If I have a tatical plan then it will help to solve my firm'm
problem in a very short time.
• Operational Plan: It also a short term plan.it’s a combination of a tactical
plan.I can use this plan to solve the prblm of my firm.
• Contingency Plan: It’s an alternative plan.For example i made a plan for my
new project but it’s not working well in this situation then i can use another
plan what will work for my new project to handle that situation.
Leadership of my business:

There are many many types of leadership :

Autocratic Leadership,Free-Rein Leadership,Participative Leadership.

In my business firm I follow the Participative leadership.

• Participative Leadership: A leadership style in which the leaders accept

some employee input but usually use their authority to make decisions.This
leadership is also known as a democratic leadership.

In my business firm I accept my employees to give their opinion for taking

decisiion & regarding their opinion then make the decission.It brings the
workplace together.

Managerial Skill:

As a manager I should have some skills to achieve goal of my biofloc fish firm:

• Conceptual skill: If I want to run my business properly I should have the

clear concept about all things of my firm.
• Interpersonal skill: It’s mainly indicates the communication skill. As a
manager I need to be communicate to others. So, I have to get from my
comfort zone or circle to able to understand what is happening in other side.
• Technical skill: To move my business properly I should be a quick learner &
able to use the knowledge properly & a variety of techniques to achieve my
objectives.
• Decision making skill: As a manager I should have enough knowledge or
experience to make the decisiion.

How I can manage time:

• I set the priorities right.

• My schedule should be long-term for large tasks.
• I have to set short term goals.
• I should delegate some tasks to employees.
 Improving Productivity and Quality
As a owner of a business I should take care of my products improvement &
products quality. If I maintain and improve product quality, it will increase the
consumer acceptance and demand.So, I shoul Select proper site ,design & layout &
control my firms production.

Site Selection:

• Cost of Workplace Space: Where I started my busines that places have

specific cost I have to pay.I selected my workplace at 17/2 alubditek
Kalibari Dhaka-1206. I’m paying 10000/= per month for this place.
• Cost of Labor: To run my fish firm properly I hired two employee.They are
taking care of my firm.So I’m paying them 5000/= per month each person.
• Tax Incentives: My workplace is not residential area so my tax rate is not
more expensive.
• Source of Demand: In my business area there are lot of market & available
fish seller & also nearby customer purchase different types of fish from my
firm.
• Access to Transportation: I selected my business site at very easy place
where lot market available.So transportation system is very easy for my
business.
• Supply of Labor: There are available labour who knows well about biofloc
fish & intrest to do this work.

Selecting the design and layout:

• Site Characteristics: I have selected my business which is suitable for

firming biofloc fishes & allow to establish my firm.
• Production Process: If I want to produce fish then there is some process I
have to follow such as I need tank, making FCO,determine the ph level of
water for fish.These all are processing for producing fish.
• Product Line: I want to produce different species of fish All are include in
Product line.So for different species of fish I should use different tank.
 • Desired Production Capacity: It depends on how much products I want to
produce ,If I want to produce large number of product then design & layout
should be large suitable for my product.

Production Control:

• Purchasing materials: To purchase raw materials for my firm I have to check

that I’m buying the best quality materials with best price in a short period of
a time.
• Inventory control: I should take care about minimize the expense of my
biofloc fish firm.
• Routing: I should maintain the sequence of for my biofloc fish production.
• Scheduling: Mainly Schedule is act fo setiing for different types of work.I
should maintain the shcedule of every work of my fish firm & I should have
plan for every task of my firm.
• Quality control:I have to ensure that how can I control my product quality &
improve or develop my product.

Motivating Employees

Motivation is the process that initiates, guides, and maintains goal-oriented

behaviors. Businesses can be successful not only because of
business ideas, but also because of employees.As an employee they need to be
motivated as well as to have the proper skills to do their jobs. Sometimes we can
employees have skills for their jobs, but they have lack of motivation to perform
well. So,as a owner of my business I should motivate my employees.There are
many theories to motivate employee.I can follow some of those theory to motivate
my employee:

• Hawthorne Study: As this theory workers are allow participate in decission

making. If I motivate my workers by giving them more attention and by
allowing them to participate then they will feel more motivated.This Theory
says when the lighting was increased, the production level increased. Yet
the production level also increased when the lighting was reduced.
• Maslow’s Theory: Maslow’s hierarcy of need theory says people rank their
needs into five general categories. Once they achieve a given category of
needs, they become motivated to reach the next category. By this
motivational theory they get motivated and give their best performance at
their work.

Fig:Maslow’s Theory

• Herzberg theory: This theory says as a business owner to motivate employee

I have to identify the factor which directly or indirectly related with
satisfaction & distatisfaction.

Common factors Identify by Common factors Identify by

disatisfied workers: satisfied workers:

Working Conditions Achievement

Supervission Responsibility
Salary Growth
Job Security Advancement

Fig: Herzberg theory

• MacGregor’s theory: According to this theory, I have two approaches to deal

with satisfaction and dissatisfaction
 X Approach Y Approach
Employees are dislike their Employees are willing to work
work & responsibility & avoid & prefer more responsibility.
work if possible.

Fig: MacGregor’s theory

• Reinforcement theory: This theory says, As a owner I can motivate my

employees by positive or negative enforcement.

• Positive reinforcement: I can give reward to my employee when their

performance is good.
• Negative reinforcement: If their performance is low & they didn’t do their
work properly then I can give them more work.

So, I can follow those above theories to motivate my employees so that they can be
strength & will do their work properly.It will help to achieve my firms goal.

Hiring, Training & Evaluating Employees

As a businessman I should hire the employee for my firm,tarin up them & evaluate
their tasks.

Human resource planning:

Human resource have 3 types of planning I should follow:

• Forecasting: I need to be farsighted to hire employees if I have need

employee for my fish firm or not.

• Job Analysis: Mainly Job analysis divided into two catagories.

i. Job description: It’s actually responsibility of the job of a an employee. So,

my hired employee should be reponsible for his job & need to clear idea
about his task.
 ii. Job specification: I should mention the specific quality of a job.

iii. Recruit: It’s another types ofhiring employees. I can hire employee initially
or externally.And I can choose someone from many applicants. This is the
screening process.There are 4 steps of sreening process I should follow:

i. Ishould know the qualifications, skill or experience of all applicants. Then I

will choose eligible applicants by their qualifications.
ii. After that I will take the interview of my choosen applicants.
iii. I should check the reference,what are their character & behavior
iv. If my selected applicants pass previous steps, then I should check their skill.

Compensation Packages:
My employees wants offer, reward ,profit bonus etc .So, I should compense my
employee. I’ll give equal opportunity to my employees.

• Salary: I will increase the salary of my employees 8% after 1 year. It will be

the compensative packages of my business.

• Commission: I will give 2% commission to each employee .

• Bonus & Share profit: I will give my employees 35% bonus on special
days.And when I got more profit, I will share with them as compensation.

• Comparison Across Job: I should companse my employees according to

their position.

Evaluation of Employee Performance:

Sometimes I need to evaluate the performance of my employees what they doing
or what is their ability.

▪ I can check their problem solving ability.

▪ How much skilled professionally they are.
▪ Their spoken & writing ability.
▪ Their behavior & character.
Through evaluating employees performance I will be able to know about their
ability behavior and distribute the work accordingly.

Creating and Pricing product

As a business owner I’m following the marketing process,strategy & way to

achieve goal of my fish firm.

Product line:

The product line is set of related product.In my firm there are kind of fish:
Tilapias,Rui fish,Catfish,Climbing fish etc.So,my firm’s product line is different.

Product mix:

In myfish firm there is different kind of fish I produce & those are non related but
some of are related.

As a businessman I can create or produce new fishes for my bioflock fish firm &
I should determine the price properly.

Create/Produce a New Product:

If I want to produce new fishes in my firm then I have follow some steps:

• I should develop my idea for producing new fish.

• To producing new fish there should have acsses the feasibility.
• I should design and test my new fish.
• I should distribute and promote my new fish to the market.
• And I should post-audit my new product.

Pricing strategies of my product:

In my fish firm I will follow these types of strategy for fixing my fishes prices:

• According to the Cost of Production: When my production cost is high then

the price of my fishes will be high & when my production cost is low the
price of my fishes will be low.
 • According to the Supply of Inventory: If there is lot of supply of fish in my
firm then I can reduce the price of fishes & when there is not more supply
then I’ll not be able to reduce price of my fishes.
• According to Competitors’ Prices: In that case if there are more competitors,
usually all the seller try to maintain the same price range.So I should also
maintain this strategy to making the price of my fishes.

Promotion and Advertising

As a business owner I should promote my product & advertise of my product.If I
properly promote & advertising properly there can be more sells & profit.

Promotion Mix:

I have to follow the promotion mix to promte my product.There are process of

promotion mix:

• Advertising: I can advertise my about my fish firm through newspapers,

magazines,TV, Internet, transportation ads etc.Reason behind the advertising
is branding my product, People will learn the good side of it and be able to
compete with competitors. Consumers will be interested in purchasing the
product.
• personal Selling: I have to identify the target market,Contact with potential
customers,make the sales presentation,answer the questions if anyone ask
something about my business.
• Sales promotion: I can give the discount ,can give offer ,I can give cupon to
the customer.There are some ways to sales promotion I can follow:
Rebate,Cupon,Dispay,sampling etc.I can folloe those way to give sales.
• Public Relations: I can arrange the special event to makethe public
relations.Such as I can arrange tree plantation program & use my firm’s
name,can arrange the program with orphan people or widow women.It will
help to make the public relation & promote my fish firm.
Optimal Promotion Mix:

▪ Target Market: After selecting the target market I decided to follow pull
strategy. In this type of strategy consumer will purchase my fishes
automaticaly when they see the adds.
▪ Promotion Budget: I’ll adjust my promotion budget in according to how
effective my promotion will be in future.
▪ Evaluating and Revising Firm’s promotion: I should evaluate & revise the
result of short-term & long-term promotion that what types of benefits I got
through promotion.

If I want to increase the sell of my fishes & achieve the goal of my firm I should
have follow promotion mix & optimal promotion mix.

Accounting and Financial Analysis

Accounting mainly calculate the profit of firm, Assets, Liabilities, Inevestment &
combination of 3 process

I should follow the 3 process of accounting:

• Identify: I have to identify that my firms transactions are in which formate.

• Recording: I should prepare the journal ,ledger,trial balance & balance sheet
of my firm.
• Community: After generating the information of my firm I have to share
with my internal & external user of my firm.

Internal user of my firm:

o Owner.
o Internal Auditor.

External user of my firm:

o Government.
o Consumer.
o Creditors.
 o External Auditor.
o Lender.

I should prepare the 4 types of financial statement for my firm.They are:

▪ Income Statement: It will show that how much product I sold & profit I earn.

Biofloc Fish-Firm LTD

Income Statement
31 December,2020
Description TK TK
Net sales 150000
(-)Cost of good sold (10000)
Profit 140000
(-)Selling Expenses (20000)
Net Income 120000/=

▪ Owner Equity Statement:

Biofloc Fish-Firm LTD

Owner Equity Statement
31 December,2020
Description TK TK

Capital 218000
Net income 120000
338000
(-) Withdraw (138000)
Owners Equity 200000/=
 ▪ Balance Sheet:

Biofloc Fish-Firm LTD

Balance Sheet
31 December,2020
Description TK TK
Current Assets 200000
15% Investment 15000
2,15000
Permanent Assets 1,18000
Total Assets 3,33000/=
Liabilities:
Current liability 40000
Long-Term liability:
5% Loan 93000
Owners Equity: 2,00000
Total Liability 3,33000/=

▪ Cash flow statement: It’s mainly show the real cash inflow & cash outflow
of my firm.So,I should prepare the cashflow statement.

So,I should have follow the accounting process & prepare the 4 types of statement
to properly run my business.

Financing
As a businessman I should manage money for my firm & findout the way how I
can manage my money,how many I invest in my firm & where I spend this
money.It’s called financing.

So,as a financial manager I have some responsibility:

 ▪ Financiial Forecasting: I should have the prediction ,assumption statement
about future.Market is ver competetive ,so if I have prediction then it will
help that what can be wrong or right decission for my firm.
▪ Capital Budgeting: I should calculating in advance that what types of
investment or where I can invest that is more profitable than othres.How
much profit I’ll get from this investment.i should calculate the present value
& future value.
▪ Determine the cost of capital:I have to accumulate that what type of is there
behind the capita.And how much return I’ll get to run my business firm.i
should try to earn profit or break even point. Break even point:

Revenue-Expenses = 0

Revenue = Expense

So,where no profit & no loss,revenue & expenses are same.

▪ Capital Structure of The Firm: It mainly my accumulated capital & how

much I’ll get from debt or share. I should calculate the ratio & percentage
that how much I got from debt & share.
▪ Risk Management: I have to findout the future risk of my firm.what type of
risk can be there brhind the investment.Where risk is high there return
possibility is also high & where risk is low there return possibility is also
low.So, I should manage the risk of my firm.

I can borrow money directly in 2 ways:

i. By selling Bond &

ii. By selling Share.

There are 3 ways to convence capital for my firm:

▪ Share Issue: I can collect money by issuing share & there should have the
dividend paper against the equity instrument.
▪ Bond Issue: By issuing bond I can gather money also.
▪ Retained earning: I can manage money from retained earning.It mainly an
earning that I retained for the re-invest in my business.

So follow those above 3 ways I can collect the capital for my fish firm.