In the actual algorithm it is actually give as,
calculate b(1): b1[(m-1)*beta+1-m*b1]^m = [(m-1)beta]^m-1[(m-1)beta-m)b1+1]
How do I decide the value for b1?
Do you know the other values (m, beta)? Then you could use the solving tool, to get the value for b1:
b(1)=solve('function','variable');
where in your case you insert your whole function as function and b1 as variable.
Otherwise you should maybe clarify your question, what are you exactly looking for