Consider these scenarios:

You just hired a new employee or freelancer. You hand them a checklist and process to follow. You then follow your own checklist to make sure they have all the information they need.
You start increasing your production of products to twice what you had before. However, they all have the same high quality since you have a clear process that each person involved must follow.
Someone offers to buy your company tomorrow and you just access a few files and folders to put together the financials you need for negotiation.
A customer calls asking about a problem they’re having. Your customer service desk asks them a set of questions to determine exactly what the problem is, resolving it within minutes.

These are all examples of situations where a standard process or checklist can make the difference between chaos and efficiency. Standardizing certain aspects of your business not only ensures consistency of quality and service, it also gives you peace of mind.

We’re going to cover the basics of creating standard operating procedures in your business. We’ll look at:

The importance of SOPs
Where you need to create SOPs
How to write basic SOPs
Guidelines for working with employees to create, revise and review
Suggested areas where you can create SOPs
…and SOPs for Freelancers

What we won’t be covering is complicated documents for standardizing things like processes for following medical compliance laws.

This report is designed primarily for small businesses, people managing outsourcers, and those who are new to the whole concept of standard operating procedures.

So put aside your “free-wheeling” spirit for a bit, and let’s focus on being as efficient as possible moving forward in your business.

Standard operating procedures (SOPs) are written instructions that outline and standardize procedures within your company. SOPs are used in every industry in order to keep business practices in accordance with legal, financial, and industry regulations.

In more common language, SOPs are how-to's that cover every aspect of your business. For example, a manufacturing company will have step-by-step manuals for running its machines. Businesses have customer service guides that outline how to deal with customer complaints. Tech companies have troubleshooting guides for when their systems don't work. An SOP can be anything from a detailed written manual with diagrams to a simple picture that shows where a specific item goes in a warehouse.

Why Your Company Needs SOPs

SOPs are essential to any company, whether you're a small startup with a handful of employees or a giant corporation with many branches and departments. Here are the reasons SOPs are so important:

Maintaining Quality Standards

SOPs ensure that every employee is on the same page when it comes to production, marketing and sales, and customer service. This ensures a consistent standard of quality throughout your company. Tasks can be easily delegated to any employee.

Troubleshooting

When problems arise in your business's daily operation, SOPs provide you a roadmap for troubleshooting. Manuals describe how to diagnose and solve problems so that any employee can do it.

No Guesswork

When you have clearly spelled out procedures, this prevents your employees or yourself from making emotional or rash decisions. Problems and conflicts can be solved fairly with no guesswork.

Reduced Learning Curve and Errors

SOPs allow you to train new employees easily. There's less of a learning curve for them. As they learn about your business, they'll make fewer errors. They can then settle into your company more quickly.

A Safe, Healthy Environment

Since your SOPs put you in compliance with all safety and health regulations, they ensure a healthier, safer workplace. They also protect your company legally in cases of liability.

Government Regulations

SOPs keep you in accordance with regulations and laws. They're easy to update when laws change. If there is a sudden inspection of your company, everything will be in order. Clients and customers may also investigate your company, and if you can show them this documentation, it helps to engender trust.

Financial Considerations

Your SOPs make managing finances, handling bookkeeping, and filing taxes much easier.

Finally, SOPs make your company more dynamic. It's easy to change company procedures and regulations when they're all well documented and easily accessible to your employees.

More Value for Your Company

All of the above benefits offer a further benefit for your company – they make your company more profitable by making it more efficient. This in turn adds value to your company which is passed on to clients and customers. This added value helps if you choose to sell the company in the future, and it helps you secure funding when you need it. Financial lenders nearly always look at SOPs when considering a company for a loan.

SOPs Can't Cover Everything

SOPs differ from one business to another even within the same industry. However, your standard operating procedures can't cover everything completely (although they should strive to). Because of this, make sure everyone in your company has a good understanding of the company's vision, mission, and values so that they can make the right decision when one needs to be made.

What Are Standard Operating Procedures and Why Does Your Company Need Them?

This course available for enrolled students only.