I Say Fiat, You Think Car

For Americans of my generation, Fiat may be remembered as meaning "Fix It Again Tony." 

But… Fiat is Money.

Fiat money originated in 11th century China.  Its use became widespread during the Yuan and Ming dynasties.

The Chinese Song Dynasty was the first to issue paper money – Jiaozi (pictured above) – around the 10th century AD.  This is believed to be the world’s first paper currency.

Although the notes were valued at a certain exchange rate based on the equal value of gold, silver, or silk, an actual conversion was never allowed in practice.

The banknotes were initially redeemed after three years' service and replaced by new notes, for a 3% service charge. But, as more of them were printed without notes being retired, inflation became evident. The government then made several attempts to support the paper money by demanding taxes, partly in currency and via other laws, but the damage had been done and the Jiaozi fell out of favor.

The successive Yuan Dynasty was the first dynasty in China to use paper currency as the predominant circulating medium. Kublai Khan, the founder of the Yuan Dynasty, issued paper money known as Chao during his reign. These original notes issued during the Yuan Dynasty were restricted in area and duration, as in the Song Dynasty described above.

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Fiat money can be defined as either of:

- Money declared by a government to be legal tender. And, legal tender can furthermore be defined as a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation.

- Fiat money can also be defined as state-issued money, which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.

- Finally, fiat money may be money without any intrinsic value. In economic terms, the intrinsic theory of value (or theory of objective value) is any theory of value that holds that the value of an object, good or service, is intrinsic, i.e. contained in the item itself.

Note that Bitcoin does not generally match these broad definitions of fiat money as legal tender. However, Bitcoin does have intrinsic value that is mostly based on supply and demand generated by people trading Bitcoin.

The original term was derived from the Latin word Fiat (which means, loosely translated, "let it become", "let it be done", or "it shall be").

Originally, gold- or silver-backed money entailed a legal requirement for the issuing bank to be able to redeem it in fixed weights of gold or silver. Today, fiat money's value is unrelated to the value of any physical quantity.

For example, coins containing valuable metals are considered to be fiat currency based on its face value as defined by law, which may be different from its market value, as metal. In 1971 U.S. President Nixon ended the direct convertibility of the United States Dollar, to gold. Since then, all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.

Oh yeah... and Tony doesn't have to fix it again anymore. Fiat S.p.A. not only makes some awesome cars nowadays, but also owns American Chrysler Group LLC.

Sell To The F500 Like A Pro

For key accounts, like the F500, sellers have to become part of the client’s strategic planning. 

The latter is NOT a process the customer alone, should own. Just the opposite is true, particularly amid economic uncertainty. Inserting yourself into a customer’s growth plans - by bringing ideas to the table or sharing what’s worked for others - is what positions salespeople to win big deals.

With a growing number of stalled deals, key business case elements can accelerate an investment decision. The lack of a clear, compelling financial justification is the number one reason deals stall!

A situation where a customer didn’t say no, but also didn’t say yes may be an implication and/or indication of declining business confidence, or - more likely - a failed sales process. And, as a result of waning business confidence, approvals for even modest investments often rest at executive level today.

The above offers a compelling reason why sound financial justification is required to attract C-Suite attention.

Sellers have to be comfortable with and know how to develop ROI scenarios for their solutions. Of course, a sound business case must also recognize additional elements, such as key risks, strategic rationale, and required success factors.

Business leaders are under pressure to deliver growth, particularly top line and earnings growth. To this end, short, specific, growth oriented proposals will catch a C-Suite buyer’s eye.

It’s easier to cut costs than deliver growth. That’s why simple, cost-cutting proposals are readily and easily dismissed. Show the C-Suite how you will partner with their business to help them achieve their growth objectives, rather than offering to cut costs, or implying that your product is the best! The latter two ("buy now and save" and "we have the best product") most commonly lead to epic sales failure!

Sales professionals must have the expertise required to help an executive execute his/her priorities. A salesperson should demonstrate an understanding of a prospective client’s business and link the sales pitch to the prospect’s strategic initiatives. Then, they need to take time to outline a financial rationale based on where their offering has worked before… and only then, might they be able to earn time with the C-suite for the purposes of educating them about how your product/service offerings will help them to achieve their strategic revenue and earnings growth objectives.

Salespeople require a 3-part story when they arrive to engage decision-makers:

1. Identify 2-3 of their corporate strategic business initiatives, and reasonably link these to whatever it is that you are selling.

2. Explain how you (and your solution) will work to change their business. What will different if they invest in a partnership with you? How will their business operate differently? If very little is expected to change, then there’s likely not much reason for them to consider your offering. Yes... even if you are offering them cost savings!

3. Therefore, you should deliver a growth-related financial justification, and not a cost-cutting one. Any investment should be quantified using meaningful metrics, like ROI. For example, a seller can include a high-level payback analysis over time, developed in conjunction with the team reporting to the business head.

The C-Suite is not looking to make friends. A sales call flows favorably when a salesperson respects time allocated to them, by quickly orienting the conversation around the client's business. More specifically, like the 3-part conversation mentioned above.

The C-Suite does not care about your product, nor your market-leading whatever bragging rights!

Getting in front of a F500 decision maker requires hard work to make the right connections with the prospect and this should be complemented by a pitch that demonstrates your understanding of their business, while clearly demonstrating how you will assist them in achieving their strategic objectives. 

The above... in a nutshell, is commonly called… enterprise sales.