Last Updated on September 10, 2024 by Treana Wunsch
Have you felt like you’re always fixing problems, answering the same questions, and juggling too much? You’re not alone. Without documented processes, everything feels chaotic, making it hard to keep up. Does this sound familiar?
The worst part is, it’s not only stressful—it’s holding your business back. Every missed step or miscommunication wastes time. It also hurts your growth. Did you know that not having documented processes can decrease revenue by up to 30%?
I’ve seen so many business owners stuck in this cycle, working harder and harder without getting the results they want. The chaos feels never-ending, and honestly? It doesn’t just go away on its own.
Not having clear processes decreases revenue by up to 30%
But here’s the good news: There’s a simple way out. Clear processes through Standard Operating Procedures (SOPs) can help. They can streamline your business, reduce errors, and free up your time. In this guide, I’ll show you exactly how to create these processes one step at a time, in a way that’s manageable and will save you tons of stress down the road. Let’s take back control of your business, starting today!
This post is all about how to document processes for small businesses.
Why Processes Are Essential for Small Businesses
You might be wondering if you really need formal processes in place, especially if things are “working” right now. Here’s the thing: when you’re running a small business, things might seem fine while you’re in control of everything, but what happens when you start to grow? That’s when things can get messy fast.
I had a client who ran a small auto repair shop. When it was just him and one other mechanic, they managed fine. Everything was in his head, and he could step in to fix any problems as they came up.
But as soon as he hired a third mechanic and an office assistant, things started to fall apart. Each mechanic had their own way of doing things. It was inconsistent in ordering parts, communicating with customers, and handling repairs.
Customers were getting frustrated with delays, repairs were being missed, and the new staff didn’t know how to do things the way he wanted them done.
That’s when we stepped in to create Standard Operating Procedures (SOPs). We started with the basics: how to greet a customer, intake their vehicle, perform a standard diagnostic, and order parts. Once those processes were written down, everything started to fall into place.
The mechanics knew how to handle each repair. The office assistant had steps for tracking orders and appointments. The owner finally had the consistency to trust his team to do the job right.
The truth is, as your business grows, you need consistency. Having documented processes not only keeps everything running smoothly but also gives you peace of mind.
You can step away without worrying that things will go off the rails. Plus, processes save time. Once you’ve got everything laid out in an SOP, you’re not repeating yourself, re-training people, or fixing mistakes. It’s all right there, ready to go.
Trust me, if you put in the effort now to set up processes, your future self will thank you. It’s one of those things that saves time, cuts down on stress, and makes scaling so much easier.
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Identifying Key Processes That Need Documentation in Your Small Business
Okay, so you’re convinced that processes are important. But where do you start? The best place to begin is with the tasks you (or your team) do most often. These are usually the ones that eat up the most time or are most likely to be done incorrectly if they’re not standardized.
Here’s a practical tip I give my clients: Go through your email, texts, and calendar. Look for patterns—what are you doing over and over again? For me, it was client onboarding.
I was constantly responding to the same questions and sending the same emails. So, I turned it into an SOP and handed it off to my assistant. It was like magic—suddenly, I had hours back in my week.
A lot of business owners miss this because they’re so caught up in just getting things done. But, if you step back and look at the tasks that repeat—like billing, customer service, or inventory management—you’ll see where processes can help most.
And don’t try to tackle everything at once. Start small. I once helped a marketing agency document its client onboarding process first, and the change was immediate.
The owner could finally focus on growing the business instead of answering the same questions over and over again. Once you’ve nailed down the most important processes, the rest will follow naturally.
One more thing: get your team involved. The people doing the tasks day in and day out often know the most efficient way to handle them. Have them document what they do, and you’ll end up with SOPs that reflect the real workflow, not just what you think should happen.
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How to Create and Document Small Business Processes Using SOPs
Creating SOPs for your small business doesn’t have to be complicated. In fact, it’s about taking what you already do and making it clear and repeatable for others to follow. Here’s how to do it, step by step:
Step 1: Define the Purpose and Goal of the Process
Before you dive into writing, take a moment to clearly define the purpose of the process. What’s the task you’re documenting, and why is it important? Be specific.
For example, if you’re documenting your invoicing process, the purpose might be to ensure that invoices are sent out on time and payments are tracked efficiently. Understanding the goal helps focus the SOP and ensures it’s built with the right outcome in mind.
Step 2: Break Tasks Into Clear, Actionable Steps
Next, list out the steps involved in completing the task. Be detailed, but keep it straightforward. For each step, write down exactly what needs to be done, how to do it, and in what order.
Imagine someone completely new to the job following this SOP—would they know what to do? For example, “Log into accounting software, navigate to the ‘Invoices’ section, and enter client details” is much more helpful than just “Send invoice.” Keep it specific and actionable.
Step 3: Assign Roles and Clearly Outline Responsibilities
If the process involves more than one person, make sure each role is clearly defined. Who is responsible for each step? Be clear about who’s doing what. For example, the office assistant enters invoice details. The owner reviews and approves them before sending. Outlining these tasks avoids confusion. It ensures everyone knows what they need to do.
Step 4: Use Easy-to-Follow Formats
Don’t overcomplicate things—use a format that’s simple and easy to follow. Depending on the task, this might be a checklist, flowchart, or a step-by-step guide.
A checklist works great for things like opening and closing procedures, where tasks need to be done in a specific order. A flowchart might be better for more complex processes with multiple decision points. Choose the format that makes the most sense for the task and ensures clarity.
Step 5: Test the Process, Gather Feedback, and Refine as Needed
Once the SOP is written, don’t just assume it’s perfect. Have your team actually use it. This is a critical step because it helps you spot any gaps or confusion in the instructions.
Ask your team to follow the SOP and provide feedback—what made sense? What was unclear? Use their input to refine the SOP and make it as clear and efficient as possible.
Tip: Involve the People Who Regularly Perform the Task
A key tip for making sure your SOP is accurate? Have the people who do the task regularly write the SOP. They know the ins and outs better than anyone else and can spot any steps that might get overlooked. This makes the SOP more realistic and ensures you’re capturing the process exactly as it’s done on the ground.
Bonus Tip: Write one SOP at a time. Take a week to get the process documented. Use the next week to test and refine it. Once the team is following it consistently, move on to the next one.
Using SOPs to Streamline and Automate Business Processes
Once you have an SOP in place, you might realize there are parts of the process that can be automated. And trust me, there’s nothing better than automating something you used to do manually. Automation is like a magic trick that saves you time while still getting things done exactly the way you want.
I had a client who ran a small eCommerce business. Every time she got an order, she would manually enter it into her system, send a confirmation email, and then update her inventory spreadsheet. We documented the entire process in an SOP, and once it was all laid out, we spotted the opportunity for automation.
With a few tweaks and some tools, she could automate her emails and inventory updates. She told me she saved at least 10 hours a week after making that switch.
You don’t have to be tech-savvy to start automating parts of your business. Once you have your processes documented, you’ll naturally start to see areas where you can save time.
Maybe you’re manually following up with clients, but a tool like MailPoet or eveb GMail can automate those follow-ups for you. Or maybe you’re manually tracking inventory when software could do that for you in real-time.
Pro tip: Start by automating the most repetitive, time-consuming tasks. That’s where you’ll see the biggest impact. It might feel intimidating at first, but take it one step at a time. Once you automate one task, you’ll start to see other opportunities and wonder how you ever lived without it.
The Long-Term Benefits of Setting Up Processes Early
I know setting up processes can feel like a lot of work, especially when you’re busy just trying to keep things moving. But let me tell you from experience—getting your processes in place now will save you a world of stress later.
I once worked with an NPO that grew from a team of two to a team of 10 in less than a year. That kind of growth sounds great on paper, but without processes, it was chaos. They were constantly scrambling to meet deadlines, staff were unhappy, and they were losing money. We sat down and created SOPs for their most critical tasks—client onboarding, project management, and invoicing—and suddenly, things started to click. They could raise more funds without falling apart, and new hires got up to speed quickly because everything was documented.
The point is, setting up processes isn’t just about getting through the day-to-day. It’s about future-proofing your business. When you’ve got SOPs in place, you can scale without losing quality. You can hand off tasks to other people without worrying if they’re going to do it “right.” And most importantly, you can focus on growing your business instead of getting bogged down in the details.
So, while it might feel like extra work now, it’s actually an investment. The time you spend today documenting your processes will save you countless hours (and headaches) down the line.
Training Employees on SOPs and Maintaining Consistency
Here’s a lesson I learned the hard way: Creating SOPs is only half the battle. You also need to make sure your team knows how to follow them—and sticks to them.
A few years back, I worked with a consulting firm that had great SOPs in place, but there was one problem: no one was using them. I asked the team why, and it turned out they had never been properly trained. The owner had created the SOPs, sent them out in an email, and assumed everything would run smoothly. But of course, people weren’t following them because they didn’t really understand them.
What I’ve found works best is taking the time to walk your team through each SOP. Sit down with them, explain the process, and answer any questions they have. This not only ensures that they understand what’s expected, but it also gives them a chance to provide feedback. Sometimes, the people doing the work day in and day out will have suggestions for improving the process.
Also, don’t be afraid to ask employees to sign off on SOPs after they’ve been trained. It’s a simple way to hold them accountable and make sure they’re following the processes. And check in with them regularly. Things change, and SOPs need to be updated to stay relevant. Set up a schedule to review and revise your processes every few months, especially as your business grows or shifts.
The goal is consistency. If everyone is following the same steps, you’ll see fewer mistakes, less confusion, and a much smoother operation overall.
Measuring the Success of Your Processes and SOPs
You’ve got your SOPs in place, your team is trained, and things are running smoothly. But how do you know if your processes are actually working? That’s where measurement comes in.
I always tell my clients to track their processes, just like they’d track their finances. You need to know what’s working and what’s not, and the best way to do that is by setting up Key Performance Indicators (KPIs). For example, if you’ve implemented an SOP for customer service, track response times and customer satisfaction. If you’ve created an SOP for invoicing, measure how quickly you’re getting paid.
I worked with a client who had a process for handling sales leads, but their conversion rates were slipping. When we dug into the SOP, we realized there was a bottleneck in the follow-up process. It was taking too long for their sales team to get back to potential clients, and by the time they did, the leads had gone cold. Once we identified the problem, we made some tweaks to the SOP, and their conversion rates bounced back.
A tool like Google Workspace can help you track your processes. It’s simple and most businesses already have it. But data isn’t everything. Talk to your team. Ask them what’s working and what’s not. Their feedback is just as important as the numbers when it comes to making sure your SOPs are effective.
The takeaway here is that your SOPs should be living documents. They’re not set in stone. Keep measuring, keep tweaking, and keep improving.
Document Processes for Small Businesses Today
If you take away one thing from this guide, let it be this: Processes are the backbone of any successful small business. Without them, you’re constantly reacting, constantly stressed, and constantly putting out fires. But with clear, well-documented SOPs in place, everything becomes easier. You save time, reduce mistakes, and—best of all—you can focus on growing your business instead of getting bogged down in the day-to-day.
Start small. Pick one task, document it, and build from there. Remember, this is a long-term investment in your business. And if you’ve already got some processes in place, take a look at them. Could they be improved? Streamlined? There’s always room for growth.
I’d love to hear your thoughts—what processes have worked for you, and what’s been a struggle? Feel free to share your experiences, tips, or questions in the comments. Let’s keep the conversation going!
