How Standard Operating Procedures Can Help Your Business as It Grows

Put an End to Chaos with SOPs

As your business grows and scales, it's easy to lose sight of the little things that made you successful in the first place. The chaos that can emerge as your company begins to add employees, incur costs, and take on new clients can leave you unable to know which way is up.

As a business owner and entrepreneur, you may feel that you’re drowning in the details of your day-to-day operations. Thankfully, there are tools at your disposal that can help you stay in control and grow your business successfully. The first tool you should add to your business toolkit and master quickly is the standard operating procedure.

What is a Standard Operating Procedure (SOP)?

If you’re going to be the long-term, successful business owner that you know you are, you’ll need to invest in the right tools for the job.

One of the essential tools at your disposal is standard operating procedures (SOPs). These are documents that formally outline both what needs to be done on a day-to-day basis and how to handle more complicated tasks such as accounting, payroll, hiring decisions, and more.

By following the guidelines listed in your business SOPs carefully – even when they may not feel like 100% perfect solutions right away – you'll find yourself saving time by grooming repeatable processes into habits. 

Turning SOPs from documents to standard practice will allow you to spend less time worrying about minutiae while focusing instead on things only a CEO can do: building long-term strategy and ensuring growth continues apace!

Common Types of SOPs

There are many different types of SOPs that businesses need to create and maintain. The most common ones include:

• Marketing Procedures

• Sales Processes & Contract Guidelines

• Financial and Accounting Procedures

• Credit & Collection Procedures

• Expense Policy for Travels & Supply Purchase

• New Hire Orientations

• Employee Handbooks

Creating your own standard operating procedures is an integral part of long-term success as a business owner. Your SOPs should align with your specific business type and operations and should be designed to help streamline your processes – not add layers of complexity to your day.

What are the Benefits of an SOP?

You must invest in developing a standard operating procedure for every part of your business. SOPs should be developed and implemented for every vital aspect of your company – from hiring decisions to accounting procedures, payroll, HR, sales contracts, you name it!

While it may seem like a big task to create SOPs for your business operations, doing so will pay off quickly. The following is just a small sampling of what can be accomplished by implementing a practical set of standards:

Increased Employee Productivity

Standard operating procedures are usually particular about completing tasks and outline what must be done and when down to the smallest detail. The SOPs structure helps your employees become more efficient and productive because they know what to do, when.  This will have the added benefit of making them feel valued for their contributions, which will keep them on your team and create a more enjoyable work environment.

Less Wasted Time and Money on Repeated Mistakes

You’ll find that your employees are much more efficient when they know what to do. This is because they're not spending time trying to figure out what to do next. The result? Fewer mistakes and less time and money spent to correct them!

Fewer Conflict Situations with Customers or Employees

By implementing clear and concise Sop's into your business, you’ll avoid those awkward situations where someone is unclear about what they should be doing or how to do it.  This will lead your employees and customers to spend less time talking about what should be done, leading them both to feel satisfied.

Higher Customer & Client Satisfaction

By following proper procedures in your business, you’re more likely to please customers with a consistently good experience. They'll be happier because they know what to expect, and you'll grow your business as they come back for more.

Increased Employee Satisfaction

When it comes to job satisfaction, a feeling of being empowered to make a difference is often the first thing that an employee cites as essential. Standard operating procedures give employees more of these feelings, which will lead to higher morale.

Lowered Cost of Doing Business

The more efficient your employees are, the less time they will spend on tasks.  The less time they spend on tasks, the lower your costs will be to complete them.

Reduced Stress For Leadership (You!)

Standard operating procedures allow you to step back from day-to-day operations and focus on the higher-level things that need your attention. For example, your SOPs may allow you to delegate many day-to-day tasks to other employees and team leaders with confidence, knowing that the SOP clearly explains the process and expectations.

How To Write An SOP

Once you begin to see the benefits of a robust set of SOPs, knowing how to start building one can bring those benefits to life. Each SOP will require its own design and implementation based on your unique company. However, there is a basic outline that many SOPs follow in their development:

1. Write down all of the tasks that need to be completed in your business.  For example, for a restaurant, you might include "preparing food" and "cleaning tables."

2. Group together related tasks into sections based on function (i.e., marketing vs. accounting).

Remember to keep the lists and descriptions as simple as possible! The key is to maintain ease-of-use so your employees can quickly reference what they should do next without having to wade through pages of instructions or sifting through lists filled with vague terms like 'filing'.

3. Begin drafting individual SOPs by working from top-to-bottom, using the following format:

Headline > What needs to be done? > Who should be doing it? > Steps to complete the task.

You can also include instructions for how to deal with exceptions, such as what should happen if a specific situation arises that is not covered in the SOP (i.e., a customer walks out without paying).

The following illustrates an example of an SOP for purchasing goods from vendors:

Headline: Purchasing Goods from Vendors

What needs to be done: Identify vendors and contact them about pricing and availability.

Who should be doing it: The owner or manager will need to do this part of the process alone or delegate responsibility based on experience level.

Steps to complete the task: 

1. Locate vendors using reputable sources such as websites, publications, and trade associations. 

2. Contact the vendor to identify prices and availability for goods or services desired. 

3. If appropriate, arrange a meeting time with them in person if possible. 

4. Place an order from this first vendor when you have found suitable pricing and inventory for your needs. This will avoid unnecessary backtracking through steps that were already completed!

With an SOP in hand, anyone in your company can take on a delegated task and follow it through to completion with success.

How A Business Coach Can Help You Develop and Implement SOPs For Growth

When your business is just starting or still relatively small, developing SOPs for your entire operation may not be an overwhelming task. However, the day-to-day leadership responsibilities of your company make it easy to procrastinate and put off creating SOPs.

Unfortunately, without SOPs in place, you add unnecessary obstacles to your own success and growth. The sooner you can create SOPs for your business and implement them across your teams, the faster the benefits will begin to arrive!

One way to build and implement SOPs for growth is to work with a business coach. An experienced business coach can help you develop and implement SOPs that will work best for your specific company and offer insights and guidance into building them to encourage growth and scalability rather than just handle tasks.

As your business grows and changes, your SOPs need to adapt as well. With a business coach on your side, you can successfully navigate any business or market changes and build momentum with your streamlined processes.

Not only can a business coach help you design and adapt your SOPs, but they can offer insight into how to build a competitive advantage through your operations. Knowing what sets your company apart from competitors can come into play when developing unique procedures that suit your needs precisely. If your SOPs raise awareness of any potential issues or obstacles, a coach can help you develop solutions.

Unlock the Power of SOPs with MDM Enterprises

Are you ready to bring the power of SOPs into your business? Working alongside a skilled business coach can help you build and put your SOPs to work in a way that frees you up to build your business and enjoy your margin space as a leader.

To learn more about SOPs and other business leadership tools, contact MDM Enterprises today at 405-919-9990. Michael Morrison and our team of experts is dedicated to helping business owners increase their sales, reduce their costs, and save their marriage by reducing the hours they work "in" their business.