Selling Your Business? Having SOPs Will Help!
Want to know why McDonalds is basically run by 15 and 16 year olds?
Standard Operating Procedures, that’s how.
Every task, every procedure is written down in minute detail that even a .. well, even a 15 year old can understand. Parents of 15 year olds will know exactly what I’m talking about!
Having SOPs for all aspects of your business is a great way to increase the value of your business.
SOPs are so important when you want to sell your business or when you want to sell your shares to potential investors.
SOPs ensure quality management, which sees to it that the company complies with the regulatory needs and meets the quality requirements of the customers. Standard Operating Procedures help your business operations to become more efficient, increasing productivity and profit margin. Any investor willing to purchase your business will have to look at all these factors. You, therefore, need to spend time creating workable SOPs for all aspects of the work carried out by your business.
Having standard operating procedures in your business is the first step to put things in order. Besides, once your employees understand the importance of the tasks assigned to them, they do their jobs more passionately.
How To Write Standard Operating Procedures
Standard Operating Procedures are relevant because they allow any organization to outline in detail the necessary activities and procedures needed to complete the tasks. They are usually in accordance with the industry regulations, laws in your area, or your standards, based on how you feel your organization needs to be run. They do play a vital role in the business since they act as a guide to every member of that organization. In most cases, they are written up so that the employees know what is expected of them. Besides, when employees follow a particular set of SOPs, you find that they produce an output or product that is consistent and predictable. If your goal is to produce a different set of products, based on creativity, then having a standardized SOP may not benefit you. However, if you aim to create a similar product over a long period, then having a standardized SOP will be of great benefit to your business. If you are having a business and don’t know how to write an SOP, don’t fret. Below are the advantages and instructions on how to write an SOP.
Involve Your Team
The first thing when you want to write a standard operating procedure for your business is to gather the people involved and discuss what is important. You will not have to include everything in the SOP, and that is why you need to discuss with your employees the essential items to include in the SOP. The reason you need to involve the employees is that they are the ones who get the work done and thus, have a deeper understanding of all the processes. As much as you may have the idea, you may not be in the best place to determine what matters to them. Call the employees for a meeting and ask them to at least take you through the process step by step so that you get a better idea of all the processes.
Define The Scope
Note that sometimes, processes might be interconnected between teams and departments, and hence, you need to determine the scope. If you document the whole process without determining the scope, then you might end up with a very long SOP, which is not the goal. Your SOPs need to be clearly written and precise, to make it easier to understand. Also, note that in some cases, you don’t need to draft an entirely new SOP. You can also review the old one that is there and maybe make a few changes, depending on what your goal is.
Choose A Format
After determining which processes need to be documented, you then need to choose a format to use. In most cases, your company will have SOPs that were previously used. You could use these templates as a guide. However, if you don’t have any previous SOPs to use as a reference, you should consider using other formats. One most common option that most people use is the use of a checklist. If the processes are few, list them down in a systematic manner such that each process is logically followed by the next until the end goal is achieved. If the processes are more complex and difficult to follow, you should consider other options, such as the process flow chart. This helps you outline all the procedures. From the start event to the end. You could also choose to use software such as business process management software. This is a digital method that helps you to map out the procedures in a better way. The software gives you the option of tracking the systems online as well as knowing any problems that might arise, such as missed deadlines.
List The Relevant Information
Since the format you choose to use might not entail enough information on how to carry out the procedure, you need to list the necessary information. This could include the login credentials of particular software that the employees need. Ensure you list all the essential information that the employees need, to see the task to completion. This could also include things such as the necessary tools required to complete the process or some health and safety warnings.