Writing SOPs: Document Your Business Before It's Too Late

Why SOPs Matter More Than You Think

Here is the brutal truth: if your business cannot run without you standing over every task, you do not have a business. You have a job with overhead.

Standard Operating Procedures are the single most neglected asset in small businesses. They are also one of the most valuable. When a key employee quits, when you want to take a vacation, when you are ready to sell -- SOPs are what make that possible.

What an SOP Actually Looks Like

An SOP is not a novel. It is a step-by-step document that any competent person could follow to complete a task correctly, consistently, and safely. It typically includes:

• Title and purpose -- what the procedure covers and why it exists
• Scope -- who this applies to and when
• Materials or tools needed -- everything required before starting
• Step-by-step instructions -- numbered, clear, no ambiguity
• Safety warnings or compliance notes -- anything that could go wrong
• Quality checkpoints -- how to verify the work is done right
• Revision history -- when it was last updated and by whom

Start With the Painful Stuff First

Do not try to document everything on day one. Start with the processes that cause the most pain when they go wrong. Ask yourself:

1. What tasks do new employees consistently mess up?
2. What work only one person knows how to do?
3. What mistakes have cost you real money in the last year?
4. What would break if your best employee left tomorrow?

Those are your first four SOPs. The National Institute of Standards and Technology recommends focusing on processes that directly affect quality outcomes and customer satisfaction.

The 30-Minute SOP Method

You do not need a technical writer. Here is a method that works for any contractor or small business owner:

1. Record the process. Have the person who does the task best record themselves doing it, narrating each step. A phone video works fine.
2. Transcribe it. Turn that recording into numbered steps. Strip out the filler and keep the actions.
3. Have someone else try it. Give the draft to a different employee and watch them follow it. Where they get confused, the SOP needs more detail.
4. Add photos or screenshots. Visual references eliminate most confusion. Take pictures of what "done right" looks like.
5. Assign an owner. Every SOP needs one person responsible for keeping it current.

Format and Storage

Keep SOPs accessible. A binder collecting dust in the back office is worthless. Options that actually work:

• Shared Google Drive or SharePoint folder with clear naming conventions
• Laminated one-pagers posted at workstations for physical tasks
• Video library for hands-on procedures where seeing beats reading
• Project management tools with checklist templates

Name every file the same way: SOP-[Department]-[TaskName]-v[Version]. For example: SOP-Field-ConcretePouring-v3.

Common Mistakes

Writing too much. If an SOP is more than two pages for a routine task, you are overcomplicating it. Break it into sub-procedures.

Never updating. An SOP from 2019 that references tools you no longer use is worse than no SOP at all. Review every SOP at least once per year.

Making it a solo project. The person who does the work should be heavily involved in writing the SOP. Owners who write SOPs from memory without input create documents nobody follows.

Skipping the "why." People follow procedures more consistently when they understand why each step matters. A line explaining "this prevents moisture damage that costs $2,000+ to repair" is more effective than "do not skip step 7."

SOPs and Business Valuation

When it comes time to sell your business or bring in a partner, documented processes dramatically increase your valuation. Buyers pay a premium for businesses that are "owner-independent." The SBA emphasizes that a well-documented business is a transferable business.

A company with 50 solid SOPs is worth meaningfully more than the same company with zero documentation. It is that straightforward.

Getting Your Team to Actually Use Them

Write SOPs into your training process. Every new hire should complete SOP-based training before touching real work. Make SOP compliance part of performance reviews. And most importantly, when someone finds a better way to do something, update the SOP immediately. That feedback loop is what keeps documentation alive.