What are the types of Capital? Write in details.

There is having three major types of capital in financial sector all of which are so important for any businesses within the globe. These are different from each other. Now let’s see all of three types in details. 1) Debt capital, 2) Equity Capital, 3) Specialty Capital.

Debt Capital: Debt capital is required when business enterprises facing capital or fund

 crises or deficiencies. Debt Capital generally taken in some agreed conditions that with interest debt amount will be returned back to a wealthy individual or banks or financial organizations or bond holders in a prearranged future date. Where interest expenses may be treated as cost of renting the capital which used in your business for its expansion or growth also it is also known as “cost of capital”. For the new business enterprises that Debt capital may be the simplest way for collecting or funding capital for their business. There profit will be considered as return on capital minus the cost of the capital. For example, profit will be calculated simply from borrowing amount of money minus interest's amount and taxes for a specific period of time under some conditions. 

Equity Capital: Some times Equity Capital called as “book value” or “net worth”. We get Equity capital when we deduct assets from liabilities. In some business capital totally funded by Equity capital. As many people don't want to be bankrupt it requires huge time and group efforts or hard work for establishing business as well as for its growth. For example, we know Microsoft has a pure equity capital in its business structure. 

Specialty Capital: Specialty capital is the gold standard in some sources of capital has about no economic cost. This may include the followings:

Negative cash conversion cycle i.e. vendor financing, insurance float, Sweat Equity etc.

Negative cash conversion cycle i.e. vendor financing: If you have a super store, you want to raise this business in a separate location for an amount of money as capital

 BDT. 50 Lacs. You have to buy inventory, keeping stocks with lot of merchandises. Assume, if you get some clients want to pay you money prior to take your merchandise, this will give you a chance to carry huge merchandise in your store than your capitalization structure. Vendor financing would calculated as part financing at the % of inventories to accounts payable. If we analyze cash conversion cycle, the more days negative this is the better. For example, the Dell Computer has negative cash conversion cycle which helps them to become a larger computer company in terms of no debt. 

Insurance Float: Many insurance company, collect money from clients and then invest in fund generating projects or areas to boost their income and in the future they payouts to the policy holder faces accidents like damaged a vehicle, car etc. According to “Buffett”, “Float is money that a company holds but does not own. It has all of the benefits of debt but none of the drawback; the most important consideration is the cost of capital, i.e. how much money it costs the owners of a business to generate float”. As you're using others money in your business to generate more income as a result you have to payout their money with profits in terms of their investment, else you'll keep an amount from that income. 

Sweat Equity: This is another form we known as sweat equity. According to, Wikipedia, “Sweat equity is a term that refers to party's contribution to a project in the form of effort as opposed to financial equity, which is a contribution in the form of capital”. Sweat Equity is that, which is created in some assets or in a company as a direct outcome of hard work effort by the owners. For example, the work in which engine has to rebuild in order to enhance its worth may be measured as sweat equity. 

Business Money or Capital or what are your potential sources for fund?

To run a business, money or capital for financing is very much essential either category of business in small, medium or large type. So, now we should know from where we may get sufficient money or capital for conducting a business. Potential sources for finding your desired business capital which are given below:

1. Banks (Commercial Banks or Government banks), 2. Financial Organization or institutions, 3. BRAC, ASA, Grameen Bank or SME Foundation or MIDAS Financing Limited etc (In Bangladesh), 4. Cooperative Society or Multi Purpose, 5. Micro Credit Organizations or NGO’s 6. Potential business partners, or JV (Joint Venture) Partnerships, 7. Friends, Family or Relatives, 8. Find out alternative sources which seem fittest for your business.

Therefore, dear entrepreneurs, if you need more money or capital for establishing or expanding your small, medium or large type of organizations please contact with your local or nearest aforementioned financial organizations to get collect your business loan in order to start your business. Also please keep in mind that, if one organization denied to allow you loan under any circumstances then alternatively meet with others because in Bangladesh or in any countries of the world having more financial organizations or banks where you will get business loan. In that connection I have no doubt, so start your business with taking fund from them to boost your income, give special chance for employment of unemployed peoples and as well as to improve your country’s economic development.     

Why SEO (Search Engine Optimization) is so important?

Before giving you the real answer, at very first I would like ask you a simple question, why a person or a company make a web site or web page or a blog? Answers surely will come like for his or their benefit or marketing through the web or Internet world in order to maximize their online visitors or traffics. As we know, any search engine like yahoo, Google, bing are the prime source of getting visitors or traffics answers, information through specific or related website. The more traffic or visitors for a particular website or web page or blog means the more benefits such as more sales, more profits. From my practical experiences, when I searched out some information I went to google, yahoo or bing search engine sites in order to take help to find out my information. But in the answer page I followed first page results lists significantly than check out second page, the busy individual would like to see results in the first page and this is undoubtedly right. And in the very first position taker is got high ranked which may creates a positive impression in to the visitors mind. At present in the modern business world, small and medium or large business organizations are operating their business globally with the help of Internet so, to make profit or do more business SEO (Search Engine Optimization) is so important. From that point, SEO (Search Engine Optimization) related projects are dramatically growing day after day. 

What is the meaning of SEO (Search Engine Optimization)?

Now a day in the World Wide Web, SEO (Search Engine Optimization) is a buzz word. And where everybody wants to see his or her website in the very first or front page of Google search, Yahoo search, bing search to get higher ranks and more and more traffic. In other sense, SEO (search engine optimization) is a unique procedure of improving the visibility of a website or blog or web page in search engine through un paid (organic or algorithmic) or natural search results. SEM (Search Engine Marketing) plays a vital role here for target paid listings else the more often the webpage or web site appears in the search result list the more online visitors or traffic will get the message about your web page. SEO (search engine optimization) may work in a different form such as local search, video search, image search, academic search, news search etc. It helps to a web page or web site its own presence in the web arena. You have consider some technique before applying search engine optimization, have to set out your target audience, optimizing a web page or website involves editing it HTML, contents and linked coding to raise its significance to specific keywords also to take away obstacles in to the indexing actions for search engines where a different tactics is rising the number of inbound links, back links for promoting a web page or website.

         

SEO (search engine optimization) is a procedure to bring a web page or website or blog in using a particular keyword to more front page of the main search engines like yahoo, bing and google. Every one, specially those who are having some knowledge in operating computer and Internet if s/he want a information s/he try to find out their valuable information via popular search engines. Each and every search engines has their own software and it starts searching to find for them from stored data of the web when someone put their words, sentences, questions in the search engine blank space. As such you write a keyword, say, “health tips” in the google search engine then system automatically within few seconds gives you a result list, and you may get lot of information related website for your search. But in the search results if you get one who placed first or second position. If you asked a simple query why a particular web page or site comes in to first position of a search engine this is because of SEO (search engine optimization).