The PPAI Expo finishes its run today in Las Vegas but there's still the opportunity to catch some great education sessions and hear from many industry leaders, including Jamie Watson, CAS, a financial analyst with business services company Certified Marketing Consultants. Today, Promotional Consultant Today shares Watson's seven resolutions for a healthy new year.

Welcome the new year with these simple changes you can make to improve the health of your company. Here are the issues, in order of importance, that our firm sees clients in the promotional products industry dealing with most often. Count them among your resolutions to get your business fit in 2017.

7. Build and review a monthly budget. The word "budget" is a scary word to some business owners who are good salespeople but lack formal financial education. However, if you are running a business, it is imperative that you get a grasp on the basic elements of your financial statements and begin to build a simple income, expense and cash-flow budget. Once your budget is in place, be sure to review it monthly so you will know exactly when and where to make changes.

6. Develop a credit policy. We are amazed at how many distributors do not have a written credit policy. One of the most frequent reasons for losing customers and salespeople is misunderstanding payment requirements. The best way to get past these uncomfortable situations is to have a credit policy in place and communicate it directly to your customer before the order is placed. All employees and salespeople should know and understand the credit policy so they can communicate it to the customer. The best payment policy is getting cash with orders because the promotional products industry is a custom industry and the merchandise being sold cannot be resold. A credit policy should include payment terms as well as consequences for past-due payments.

5. Reevaluate your current commission structure. The standard industry commission split has traditionally been 50-50, where the company keeps 50 percent of the margin and the salesperson gets the other 50 percent. A proper policy will not only provide excellent compensation to salespeople, but will also motivate them to sell more, solidify customer relationships and ensure that the company will cover overhead expenses and prosper financially. The industry has changed since the 50-50 commission split was first implemented, so you should consider the advantages of changing your structure accordingly.

4. Assemble a board of advisors (BOA). A board of advisors is simply a group of trusted colleagues and/or friends whose opinions you value. A BOA can help with all sorts of issues from simple human resources questions to IT questions. One tip: When assembling the BOA, try to find people who have knowledge in areas where you might be lacking. For example, if you hate computers, then find someone who is strong in IT. Once you have assembled the BOA make a schedule to meet quarterly and discuss the issues or decisions you have been struggling with.

3. Write a policies and procedures manual. In the current legal and regulatory climate, it is necessary to have a guide that documents and defends both the actions of a company and its employees. A good policy will not lock you into a rigid pattern of decision making. Rather, it will provide an outline for handling company issues as they arise. A copy of the manual should be provided to every employee and a documentation of their receiving it should go on file.

2. Develop a succession plan. Lack of a plan is one of the most costly shortfalls we see in the industry. Whether your company consists of one or 1,000 employees, a succession plan is the best way to preserve and realize the value you have built in your company.

Many people think a succession plan only addresses what to do when an owner decides he or she wants to retire. However, it can also address the development of talent and leadership skills within an organization. Effective and proactive succession planning not only sets an outline for future events, it defines the steps and strategies necessary to achieve company goals.

1. Consider non-compete and nonsolicit agreements. While sometimes controversial in the level of enforcement, a noncompete or non-solicit agreement can be one of the most important ways to protect your sales, trade secrets, good will and overall investment in employees. It is best to consult legal representation because laws vary from state to state, but the following factors are most often discussed when determining enforceability: length of time, geographic area, employee vs. contractor status, compensation for signing, overall restrictions and reasonableness of contract.

Source: Jamie Watson, CAS, is a financial analyst with Certified Marketing Consultants, Ltd. and a PPAI business services member. She has been involved in various aspects of finance and accounting for more than 12 years and has provided consulting services for both supplier and distributor companies for more than seven years. Watson graduated magna cum laude with a bachelor of business administration degree from Stetson University and she earned her masters of accountancy degree from Manchester College. She qualified as a CPA in the state of Indiana, where she worked for the regional accounting firm of Alerding & Co., LLC, before joining the promotional products industry.

Hear Watson live at the following session today:

A Salesperson's Guide To Understanding Financial Statements. Thursday, 9–10 am, Breakers D, Level 2

For more education sessions, go to expo.ppai.org.