New Financing Options for Enterprising Visionaries
Made Possible When Society Chooses The Fiduciary Way
When enterprise needs money,
Finance provides it.
When it comes to Finance,
all Money is not created equal.
Choosing the right money,
at the right time,
to finance your enterprise
the right way,
which is your way.
Sequencing Capital to Fit the Flourish and Fade of Your Social Contract with Popular Choice
Seeing your business through its cash flows.
Are you running your business to realize your vision, or to satisfy the demands of your Financiers?
Fairness is not a value that gets valued in the narcissism of Neoliberalism. To the contrary, a primary precept of Neoliberalism is,
It is socially good,
to be transactionally bad.
Fairness is the core value of The Fiduciary Way, a pragmatic fairness that recognizes that businesses are in business to make money. So every business decision is a mediation of the tension between cost and revenue, the difference between the two being the profit that is what keeps the business in business.
Spending money, transactionally, is how we shape the lives we live, economically, and how a business spends money shapes the lives of the people who work in that business, while they are working, and also when they are not working, because the choices we make at work impinge upon and inform the choices we make in our personal lives.
Neoliberalism encourages (requires?) us to minimize cost in order to maximize profit on a given stream of revenues, without caring about the consequences of our cost cutting on the revenues of those who are, numerically, a cost to us.
The Fiducuiary Way supports (requires?) business in caring about the impact of cost to the business on the revenues of those who represent a cost to the business, by prioritizing enterprise cash flows for:
- Popularity in the social contract with popular choice (the whole reason any business continues in business);
- Sufficiency of cash flows to the needs of the business, including the requirements of its financiers;
- Fair Trade in supply chains;
- Fair Engagement with law/government/pubic policy and community;
- Fair Reckoning with the impacts on the business infrastructure and operations on Nature and Society;
- Fair Working conditions and compensation;
- Fair Dealing with customers, distributors and competitors; and
- Fair Sharing between enterprising visionaries and their financiers, fiduciary and otherwise.
When a business presents its accounts within the rubric of The Fiduciary Way, we can see whether in operates as fiduciary-grade, or not.
Finance
anticipates
future
cash flows.
What cash flows are your Financiers anticipating?
Financiers Anticipating Future Cash Flows
The Neoliberal Way
Empire building through Corporate Conglomeration to realize the Markets’ Anticipation of Future Cash Flows
The Fiduciary Way
Efficiency and Effectiveness is Fulfilling the Social Contract Between Enterprise and Popular Choice
In the narcissism of Neoliberalism, that makes share price trading markets the center of our human universe, enterprise is framed as the corporation for building a business empire that supports infinite exponential share price growth.
In new social narrative of The Fiduciary Way, enterprise is framed as a social contract with popular choice for doing the work of putting learning into action collaboratively co-creating surpluses for sharing, transactionally, in exchange for a price paid in money or other value, as one node in a network of transactions through which humanity collaborative co-creates, curates and innovates the economy as a safe home for a dignified humanity.
The purpose of enterprise is to ride the flourish and fade of its social contract with popular choice. As skillfully as possible.
Scale is important in our story. A successful enterprise has to operate at the right scale to be efficient, and good at what it does. Which is what makes it popular.
But scale is not the only thing. People in business don’t stop being well they go into business. Contrary to the teachings of Neoliberalism, in The Fiduciary Way it is not socially good to be transactionally bad.
Sometimes, enterprise needs money to operate at the right scale.
When enterprise needs money Finance provides it.
Finance is how society aggregates surpluses saved by individuals for a purpose, and deploys those aggregations as financing for enterprise that along with that purpose (or not, as is the case with Neoliberalism, that aligns everything in society to the purpose of the share price trading markets, which is to finance growth to deliver liquidity so people will participate in the markets, and market makers can make money making markets).
In The Fiduciary Way, there is a continuum of capital from which enterprise can choose the money it needs: patronage, grants, subsidies, borrowing, selling or cash flow sharing.
patronage
IMPACT
Family & Friends
(Family Offices/Rich People)
grants
MISSION
Church & Philanthropy
(Foundations)
subsidies
POLICY
Taxing & Spending
(Government Programs)
credit/loans
PROPERTY
Banking & Lending
(Banks)
equity/shares
PROGRESS
Exchanges & Funds
(Markets)
cash flow sharing
SUFFICIENCY
Pensions & Endowments
(Fiduciary Money)
Each of these different architectures of finance represents a different source of capital for enterprise that can be the right kind of financing at different points in the flourish and fade of the social contract with popular choice (think: markets, in the language of Neoliberalism), culminating in fiduciary financing for enterprise cash flows through equity payback/earnback agreements on formulas for sharing in enterprise cash flows prioritized for:
Popularity in the social contract with popular choice;
Sufficiency of cash flows to the needs of the business, including its commitments on financing;
Fair Trade in all supply changes (consumables, OPEX);
Fair Engagement with the law and community (PR and Compliance);
Fair Reckoning with future impacts of present choices on Nature and Society (durables, business infrastructure, CAPEX);
Fair Working conditions and compensation (Payroll and Labor Relations)
Fair Dealing with customers and competitors (Product Design and Packaging, Marketing, Distribution, Advertising and Sales);
Fair Sharing between enterprising visionaries and their financiers, along the continuum of capital
Before we Mobilize Fiduciary Money to escape Financialization, the continuum for enterprise ends at equity shares sold into the share price trading markets, and a social contract with those markets to always be driving your share price up.
This is what drives Growth in the markets, which is what allows the markets to deliver on their core promise of Liquidity to market participants.
No Growth, no Liquidity.
No liquidity, no market participants.
No market participants, no markets.
No markets, no possibilities for market makers to make money making markets.
Until we mobilize Fiduciary Money, there is no escape from this social contract with the financialized markets, once you make it. It’s a little bit like selling your soul to the devil, only the devil in this case is the incessant and insatiable demand from the share price trading markets for more growth in the trading price for your shares.
You know, as a business person, and we all know, as an article of common sense, that every business will eventually reach efficient scale, and its cash flows will stabilize.
The financialized markets don’t accept that. If your business cannot grow through increasing efficiencies of economies of scale, then you must conglomerate: buy, or be bought; eat, or be eaten.
This is not a choice that is left to you. It is a choice that will be forced on you by the financialized markets. If you don’t make it, you will lose control of your company: you will be out of a job.
If you do make it, you may lose your soul, and wish you had a different job!