Business standard operating procedures are not just for large corporate organisations. This blog explains what an SOP is and 6 reasons why all businesses, even sole traders, can benefit from having documented standard operating procedures in place.
What is a standard operating procedure (SOP)?
An SOP is a document that explains in detail step-by-step how your business works. Each distinct process that you run, from making your core product or delivering your service to business development to bookkeeping and all the activities that make up those processes are written down to create a manual that anyone can understand, even with limited prior knowledge of your company.
Why don’t people write these?
Many business owners, especially those running small businesses do not see the value in documenting their processes. Sole traders do not have staff so why would they need a process to follow when they can simply follow the process in their head?
Writing such procedures can be time-consuming and not very exciting, so many business owners feel that they can be doing something more productive than meticulously documenting every step of every business task.
Six reasons why you should write business standard operating procedures
- By writing down your processes step by step, you can identify ways to simplify and improve your workflow. It’s not until you go through the detail that you can more easily spot the bottlenecks and inefficiencies. Have you ever spent ages trying to remember where a document, contract template, or image is? Then an SOP will keep those details for quick reference.
- Having business standard operating procedures takes the guesswork out of how your business works. When you start to grow and need to outsource parts of your activity or take on staff, your standard operating procedures mean work gets done more efficiently and to the right quality.
- Business consistency is greatly improved by having an official way of doing things. If staff work deviates from the expected, you can point to the SOP to help them understand what is required and to provide remedial training.
- As your business scales and you take on more staff, having standard operating procedures can help reduce the amount of time you need to spend on training and consequently saves you money in the long run.
- Having documented your processes, you will be able to identify opportunities for improvement and automation which can result in significant cost savings.
- If you are considering selling your business, clearly documented processes will help when it comes to making a valuation of your company. When there are up-to-date, accurate SOPs in place, there is higher confidence that your business is well managed and successful.
How do you even start with documenting your business procedures?
It can feel overwhelming to think about writing down everything you do to make your business work. Start by writing headings as follows:
Marketing | Admin | Finance | Sales | HR | Core business
Under each heading list the different activities that you do to make that area operate.
If you already have staff in place or outsourced help, ask them to document the activities they do, using a standard format. Providing a template to follow means all your SOPs will look aligned and professional.
If you haven’t yet outsourced, you can tackle each area, one at a time. A good way to do this is to document a process while you are doing it. In other words, the next time you create an invoice, add someone to your CRM or deal with emails, write down the step-by-step process you go through. You may be surprised at how quickly you can build up your SOPs this way.
What if I can’t face this task?
Don’t worry, it is a daunting task, especially if you have been in business for a little while and you have a lot of different processes. You can outsource your business standard operating procedures writing to someone who is experienced in how to write processes.
How can I get started?
If you would like some help to create your SOPs, I offer a bespoke service depending on which SOPs you already have, if any, and which project management, email, and CRM software you are using. Get in touch to find out how you can get your business in the best shape of its life in 2022. Call me on 07670 719248 or email zoetheva@yahoo.co.uk