Question

500-600 words, APA Citation/References

Consider a business idea that you could imagine starting up in Maldives. Explain what source or sources of funding might be available to you, approximately how much money you think you would need, and why you would choose that particular source or sources. How would you convince the potential funder or funders that they should invest in your idea? Please explain in detail.

Answer 1

Business Idea:

• Integrated Farming [Livestock, Fishing and Cropping: Staple Crops and Crash Crops]

Source of Funding:

• Venture capital Investment
• Research Institutions
• Family and Friends

Amount of Fund Required:

• Approximately $30,000 for importing Livestock from India, which is in closest proximity.
• Approximately $56,000 for Crop seeds, Vermicompost using Vertical plantation method to make maximize the use of limited space.
• Approximately $10,000 for freshwater fishing.
• Approximately $80,000 for land.
• Total – $176,000 [The estimation is based on Cost of Commodities in Maldives table illustrated below]

Reason for selection:

[How would you convince the potential funder or funders that they should invest in your idea?]

1. Reason: Why the Maldives?

Maldives
Year	Population	Global Rank
2019	451,738	173
2018	444,259	174
2017	436,330	174
2016	427,756	175
2015	418,403	175
2010	364,511	177
2005	318,836	178
2000	280,384	179
1995	254,082	180

Source: (Worldometers, 2019)

Maldives population is increasing every year, also the country is rising to a significant position among the global population every year. Meaning there is a high possibility of the population increasing in the forthcoming year and if the right product is sold there is a high possibility of capturing the market.

Further out of Among the 1,190 islands in the Maldives, only 198 are inhabited. Meaning we have 198 islands for production of desired products.

2. Reason: Why Integrated Farming?

In 2017, Maldives exported $309M and imported $1.39B, resulting in a negative trade balance of $1.08B. Among the imported goods agriculture products are imported at the highest value since the beginning of the trade liberalization. The top import origins are China ($274M), Singapore ($226M), India ($210M), Malaysia ($129M) and Sri Lanka ($113M).

Below Illustrated Cost of Commodities in the Maldives:

Restaurants	Actual Price (2019)	Range
Meal, Inexpensive Restaurant	65.00 Rf	31.00-150.00
Meal for 2 People, Mid-range Restaurant, Three-course	410.51 Rf	300.00-697.50
McMeal at McDonald's (or Equivalent Combo Meal)	131.75 Rf	93.30-210.00
Domestic Beer (0.5-liter draught)	46.50 Rf	27.99-58.63
Imported Beer (0.33 liter bottle)	62.00 Rf	55.00-82.08
Cappuccino (regular)	38.67 Rf	27.99-70.00
Coke/Pepsi (0.33 liter bottle)	16.36 Rf	12.00-30.00
Water (0.33 liter bottle)	7.40 Rf	4.00-12.00
Markets
Milk (regular), (1 liter)	25.75 Rf	22.00-32.00
A loaf of Fresh White Bread (500g)	25.00 Rf	20.00-35.00
Rice (white), (1kg)	15.00 Rf	8.00-45.00
Eggs (regular) (12)	24.00 Rf	24.00-60.00
Local Cheese (1kg)	103.00 Rf	56.00-150.00
Chicken Breasts (Boneless, Skinless), (1kg)	62.50 Rf	48.00-85.00
Beef Round (1kg) (or Equivalent Back Leg Red Meat)	109.67 Rf	59.00-190.00
Apples (1kg)	35.00 Rf	25.00-45.00
Banana (1kg)	52.50 Rf	30.00-80.00
Oranges (1kg)	41.67 Rf	30.00-60.00
Tomato (1kg)	45.33 Rf	36.00-60.00
Potato (1kg)	19.00 Rf	15.00-22.00
Onion (1kg)	45.00 Rf	28.00-55.00
Lettuce (1 head)	62.50 Rf	35.00-90.00
Water (1.5-litre bottle)	10.40 Rf	6.00-15.00
Bottle of Wine (Mid-Range)	1,045.00 Rf	590.00-1,500.00
Imported Beer (0.33-liter bottle)	30.00 Rf
Cigarettes 20 Pack (Marlboro)	70.00 Rf	70.00-70.00
Transportation
One-way Ticket (Local Transport)	25.00 Rf	10.00-25.00
Monthly Pass (Regular Price)	800.00 Rf	690.00-900.00
Taxi Start (Normal Tariff)	25.00 Rf	25.00-25.00
Taxi 1km (Normal Tariff)	25.00 Rf	25.00-25.00
Taxi 1hour Waiting (Normal Tariff)	100.00 Rf	100.00-100.00
Gasoline (1 liter)	11.80 Rf	10.00-15.00
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)	800,000.00 Rf	450,000.00-800,000.00
Toyota Corolla 1.6l 97kW Comfort (Or Equivalent New Car)	700,000.00 Rf	400,000.00-950,000.00
Utilities (Monthly)
Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment	3,298.61 Rf	2,000.00-5,000.00
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans)	1.12 Rf	1.00-1.50
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)	1,340.00 Rf	999.00-2,100.00
Sports And Leisure
Fitness Club, Monthly Fee for 1 Adult	894.44 Rf	600.00-1,600.00
Tennis Court Rent (1 Hour on Weekend)	100.00 Rf	50.00-150.00
Cinema, International Release, 1 Seat	100.00 Rf	100.00-150.00
Childcare
Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child	1,933.33 Rf	1,300.00-3,000.00
International Primary School, Yearly for 1 Child	77,000.00 Rf	48,000.00-150,000.00
Clothing And Shoes
1 Pair of Jeans (Levis 501 Or Similar)	606.25 Rf	400.00-750.00
1 Summer Dress in a Chain Store (Zara, H&M, ...)	480.71 Rf	250.00-900.00
1 Pair of Nike Running Shoes (Mid-Range)	968.62 Rf	550.00-1,500.00
1 Pair of Men Leather Business Shoes	1,092.50 Rf	750.00-1,500.00
Rent Per Month
Apartment (1 bedroom) in City Centre	12,550.00 Rf	10,000.00-15,000.00
Apartment (1 bedroom) Outside of Centre	9,055.56 Rf	6,000.00-12,000.00
Apartment (3 bedrooms) in City Centre	26,700.00 Rf	25,000.00-35,000.00
Apartment (3 bedrooms) Outside of Centre	21,625.00 Rf	20,000.00-25,000.00
Buy Apartment Price
Price per Square Meter to Buy Apartment in City Centre	63,686.48 Rf	35,585.49-152,659.23
Price per Square Meter to Buy Apartment Outside of Centre	24,218.80 Rf	16,145.87-32,291.73
Salaries And Financing
Average Monthly Net Salary (After Tax)	10,140.63 Rf
Mortgage Interest Rate in Percentages (%), Yearly, for 20 Years Fixed-Rate	15	9.00-15.00

Source: (Numbeo, 2019)

From the table it can be well interpreted that the cost of food and agriculture products are very high compared to even developed countries, also with the growing population, there is a huge scope for making better profit out of these products.

Reason 3: Why this Product Line Strategy?

Product line:

• Livestock
  • Milk
  • Milk Products
  • Meat
  • Eggs
  • Bio-Gas [Substituent for LPG]
  • Manure [For increasing soil fertility]
  • Fertilizer
  • Pesticides

[Note: Livestock waste is the food for Fish and Plants]

• Fishing
  • Fishes
  • Nitrate water [Fish waste – Nitrate: Complete nutrient plants growth]

[Note: Fish waste is the nutrient plants]

• Cropping
  • Staple Crops [Vertical Plantation using coconut coir as a substitute of soil]
  • Crash Crops [Vertical Plantation using coconut coir as a substitute of soil]

[Note: Crop waste is the food for livestock]

Meaning: Zero Cost production once everything is properly implemented. Further, all the products are nothing but money in the mere future.

This satisfies growing demand: Hereby Venture Capital Fund Can Acquired.

This reduces import significantly and helps in sustainability: Hereby Fund can be acquired from Research institutions.

Or least option to get the help of my family and friends in funding the project.

References

Numbeo. (2019). Retrieved from www.numbeo.com: https://www.numbeo.com/cost-of-living/country_result.jsp?country=Maldives

Worldometers. (2019). Retrieved from www.worldometers.info: https://www.worldometers.info/world-population/maldives-population/