What is the best refund policy for a small business that hosts events?
I am co-owner of a small business that hosts weekend get-aways at local hotels to scrapbookers. Every weekend that we host, we seem to have a customer who at the very last minute can't make it due to a family emergency, acute illness etc. We need advanced notice in order to cancel hotel rooms, meals etc. otherwise we lose the money (still need to pay the hotel/catering). We posted a refund policy, but have lost a customer over this issue. Since we are a new business, we currently don't have the financial cushion to support these incidents, but I am willing to hear suggestions from a 3rd party. Thanks for your time!
When I host events, I have a no refund policy as well. If you have to make the go/no go decision, then that should be implemented for your clients as well. There will always be reasons someone will say they can't come. If you have a very upfront "NO REFUNDS" policy, then the client accepts the risk if their schedule changes. Be consistent and be upfront.
Developers and sponsors often have to raise large sums very quickly from multiple sources at a time. To do that efficiently, they typically bundle up all of the information on a given capital raise into an all-in-one-package for investors.
Many entrepreneurs want to go directly to the source the moment an idea strikes or at the first sign of growth, but you need to first prove the business to yourself before asking others to believe in it.