Dear Karen: I own a small business and want it to operate ethically. How do I incorporate business ethics?
Answer: The two fundamental elements of an ethics program are a written code of ethics and a way for employees to anonymously report questionable conduct, said Doug Beeuwsaert, a consultant at Newport Beach financial services firm Lyndon Group.
"The code of ethics should be written in a collaborative manner, with a steering committee consisting of staff at all levels," Beeuwsaert said, "and implemented with senior management's backing." Find sample ethics codes online to use as a starting point.
Establishing an anonymous whistle-blower hotline, which can be a dedicated voice mailbox, encourages your employees to communicate concerns without fear of reprisal.
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Starting an online firm from home
Dear Karen: I'm thinking of starting a Web-based home business. It will feature articles, advice and templates to help small and mid-size business owners stay out of court disputes. What business model will bring in revenue and help us avoid potholes?
Answer: Your site can generate revenue by charging users or provide free advice while charging for advertising and sponsorships.
"Decide whether you are looking for immediate revenue or long-term growth," said Michael T. Hanley, an accountant with Merl & Hanley. "If immediate revenue is your goal, the site would typically be geared toward charging fees to the site users. If long-term growth is the goal, offering your site's services at no cost will translate into higher membership numbers, which will translate into higher advertising revenue" eventually.
You can avoid problems by establishing an appropriate legal entity for your business. If you set up an S-corporation or a limited liability company (known as an LLC) with more than one member, you will minimize your risk of a random tax audit.
Those business entities will also insulate your personal assets from any lawsuits relating to this company. It also may minimize your tax liability depending on the size of your business, Hanley said.
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On-site day care for employees
Dear Karen: Some of my employees are asking for on-site day care. Is this possible for a small company?
Answer: On-site day care is a powerful retention tool for a small company, but it is a costly benefit in terms of expense, time and effort.
