View Full Version : Was this an appropriate way to raise money?

10-10-2014, 07:17 AM
Hi all! I wish I could have kept this story short for anyone who's about to read my post.

I ran into a neighbor recently who mentioned that she's starting a business, essentially a bed and breakfast on her property. I was excited to hear her news not only because it was nearby but I also hoped she could utilize my background in marketing and advertising in the future. We exchanged information and I received a phone call about two weeks later.

She explained that she was excited about her new venture and that she and a "friend" of hers had a question for me. This "friend" happened to be the third party on the line and proceeded to reiterate my neighbors excitement for her new business and that they both wanted to know if I would attend a ribbon cutting ceremony that following week in support. As strange as the phone call was I agreed to attend anyway hoping at the very least I could network.

The day of the ceremony I get to her property and am greeted by both my neighbor and her "friend" and led inside to a small group of other people, mostly family and friends. The ceremony begins with the "friends" speech. Her speech topic began with herself and talking about her own business. I was getting confused because none of this had to do with what I was invited to. She proceeded to talk about energy deregulation. That's when the red flags went up. This woman was from some energy company, probably not even a real friend, and she was pitching to a small group about how we can "simply" save 3% on our energy costs by switching to this company and ALSO by going through my neighbor to do so because my neighbor in turn gets a bunch of cash for getting people to switch, or by referring others.

There was no ribbon. There were no scissors to cut that ribbon. Just a speech from a seemingly fake friend about how switching my energy provider will save me pennies and help my neighbor raise funds for the new business. In my eyes it was the old bait and switch. I left with a bad taste in my mouth. Sure, they could have been straight forward about the actual reason they called in the first place but I guess no one would show up. The reason I brought this to the forum is because I truly thought this was an awful way to introduce your business, just an overall bad first impression. I may not be an investor but After that experience I already wouldn't recommend anyone going to their B&B before it's even ready nor would I be willing to offer any of my marketing and advertising experience. Maybe I'm wrong? As a future entrepreneur I couldn't see pulling a stunt like this to raise money and risking ticking off any potential supporters. I'd love to know everyone's take on this. Thank you in advance!

10-11-2014, 07:02 PM
Thanks for your reply, I agree. If I wasn't so confused and caught off guard that night I would have said how I really felt about the situation

04-16-2016, 09:01 PM
It was a bait and switch but also a good strategy into getting prospective funds. Think about it, starting a business and having good capital is hard if you do not have a sponsor or money already saved up.

08-29-2019, 03:55 AM
Yes you are right

07-24-2020, 11:54 PM
Picking a gathering pledges thought for your philanthropic or good cause is once in a while troublesome. How It Raises Money: Sponsorships, In-Kind Donation, General Sale Considerations: Races and strolls are extremely popular at the present time, so get on board with the temporary fad.

03-25-2021, 04:11 AM
As long as there is no string attached, then, it is appropriate. People tend to think something is up when you do something like this. - Phillip Elden (https://www.phillipeldenprofile.com/)