New Collaborations Along the Continuum of Capital
The new social narrative of The Fiduciary Way creates new possibilities for collaboration along the continuum of capital through a build-out-to-take-out that starts with Family & Friends (Family Offices, or Impact Money) providing patronage to enterprising visionaries in the early days, and ends with Pensions & Endowments (Fiduciary Money) providing final take-out financing at stabilization through fiduciary minimum cash flow equity payback, plus “upside”, financing agreements.
Pensions & Endowments
How is this different?
In the currently popular social narrative of Neoliberalism, everything ends in the markets for trading on share prices.
And once an enterprise enters those markets, there is no way out.
And while in those markets, enterprise MUST grow its share price.
That becomes a game of conglomeration: acquire, or be acquired; eat, or be eaten.
- Decision-making become short term: the next quarterly earnings report.
- Corporations become gigantic, monopolizing entire ecosystems.
- Economics become elitist.
- The financial system becomes unstable.
- Our retirement systems, which are largely funding all of this, become unreliable.
- Business practices become socially and environmentally unsustainable.
- Dark Money captures politics and public discourse.
- Politics becomes divisive, degeneration towards violence.
- Society becomes institutionally incapable of taking action on the great challenges of our changing times, such as climate, and other challenges that require humanity to take action at the scale of climate, as earthlings living together in co-dependancy on one shared earth.
This is, of course, the exact opposite of what the social narrative of Neoliberalism tells will be the case.
The Neoliberal social narrative promises that all this growth in transaction volumes and share prices is just a numerical measure of more production and more consumption – more that is better.
Better for who? That’s the question.
It is absolutely, unequivocally and categorically better for market makers making money making markets in share price trading. That business equation is very simple; more production and consumption means growth in transaction volumes measured numerically, as prices paid in money; growth in transaction volumes means growth in share prices; growth in share prices means liquidity for market participants; market participation creates opportunities for market makers to make money making markets in share prices.
The formula is easier to see in the negative: no growth in production and consumption means no growth in transaction volumes measured as prices paid in money; no growth in transaction volumes, no growth in share prices; no growth in share prices, no liquidity in the markets; no liquidity, no market participants; no market participants, no markets; no markets, no opportunities for market makers to make money markets.
But does is kind of more better for how you want to run your business, and live the life that running your business allows you to live?
If you had the opportunity to escape this constant pressure to grow your share price – or to avoid it entirely – would you take it?
Private Equity does not really offer you that possibility. Private Equity is a time-out from trading, where they slice-and-dice your company before pumping-and-dumping what they hath wrought back into the share price trading markets, either directly or through sale to corporations in the share price trading markets, who will buy you up, wholesale or piecemeal, as a strategy for growing their own share price.
The Fiduciary Way does.
A New Theory of the Enterprise = A New Possibility for Enterprise Finance
Let’s think about your business in human, interpersonal, and not financial, numerical, terms, to see your business as an ongoing, evolving collaboration of people you work with, and who work for you, to provide people with something that they will like, because it makes their lives a little better in some way that matters, to them, and to you.
The work you do to provide this something to others requires:
- Knowledge of the thing and how it works, and why it matters to others so much that they will pay you to provide it to them;
- Networks of connections into the economy for completing various transactions, of supply and distortion; and
- Routines for regularly and reliably making available to others the thing (or portfolio of things) that your business is in business to get paid for providing.
This work requires money. You have to curate and innovate your Knowledge, cultivate your Networks and execute your Routines before you get paid by others for doing all this work.
When Enterprise needs Money, Finance provides it.
So, part of the knowledge you need to have in order to succeed in business is knowledge of Finance: where can you get the money you need to do the work you do in order to get paid more than it cost you to do the work? who do you have to know? what do you have to give them, so they will give you the money you need to do the work you want to do the way you want to do it?
That is the knowledge we want you to innovate, to see the possibility for equity earnback financing, for replacing capital from outside the enterprise with capital generated inside the enterprise, and terminating your accountability to the needs of financiers you work with, if and when that accountability is no longer supportive of your vision for your enterprise, the work you want to be doing, and the way you want to do it.
This possibility may not appeal to every enterprising visionary, but if it does appeal to you, let’s talk!