How to Create a Standard Operating Procedure (SOP) Manual for Your Small Business + A Template You Can Reuse

Standard operating procedures are documents with clear instructions to perform routine tasks, such as employee onboarding, payroll maintenance, or temperature monitoring in the food industry. Companies can have more than one SOP, which are usually stored in digital workspaces like Notion or Confluence.

The SOP slightly varies from other documents outlining general work instructions. SOP includes mandatory requirements, while a general guideline book shows the best practices. 

Imagine you're a business selling accounting software. Now, your SOP could look something like this:

1. Acknowledge a customer request within 2 hours of receiving it.
2. Verify and categorize the issue based on the provided information.
3. Assign to a specialist to resolve the query.

Companies with an SOP enjoy better work consistency, product quality, operational efficiency, and compliance.

There's a possibility you think SOP is just a document with step-by-step instructions. In reality, it binds your workflows and employee responsibilities to create a better workplace output.

The moment after implementing SOP in your process, you'll notice benefits like:

• Better consistency: Detailed instructions allow every employee to complete tasks with the same standard.
• Improved onboarding experience: New hires grasp workflows and understand responsibilities more quickly, which cuts down on costs.
• Lesser errors: In-depth explanations make it easier for employees to follow standard procedures, reducing the chances of mistakes.
• Scaling opportunities: The step-by-step instructions provide a clearer picture of everyday workflows. Employees can scale production without worrying about committing errors.
• Reduced costs: You can save costs on training new hires and on unanticipated errors.

When SOP development is made compulsory, there's better employee experience and smoother operations. Companies are able to reduce employee onboarding time from a few weeks to a few days with an SOP.

This is the power of using an appropriate operating manual, regardless of the industry you're in.

An SOP for the food industry drastically varies from the one created for the HR department. As such, SOPs fall under two main categories: Technical and management. 

We've organized SOPs into four major types to give you a glimpse into the theoretical side.

1. The Step-by-step SOPs

This type of document contains general guidelines that make everyday tasks easier to manage. The main goal is to make decision-making simpler for your team members.

As an example, an SOP checklist could contain the following instructions for someone in an assistant role:

1. Preparation: Collect relevant files.
2. Step 1: Right click and create a new folder.
3. Step 2: Coordinate documents into a single folder.
4. Step 3: Give a proper file name based on the current project.
5. Finalization: Review and email documents to the CEO and external stakeholders.

Ensure to arrange these steps in the order they must be performed. 

2. Hierarchical SOPs

As the name implies, this type of SOP includes multiple steps and sub-steps related to complex tasks. It's more handy for team members handling different roles because it explains the responsibilities for each.

Companies use this document for high-functionality work, like:

• Factory production,
• Patient care procedure,
• Technical failures, such as overhauling a compressor.

It's best to use this SOP type when the work demands the highest level of precision and coordination.

3. Flowchart SOPs 

This type of SOP writing is useful for duties that require image-based explainers. 

 Flowchart or visual SOPs are more common for chores involving:

• Simple but repetitive movements,
• Multi-language necessity,
• Accuracy and consistency.

A safety procedure showing how to perform first aid is a classic example of a visual SOP. Use a visual SOP depending on the type of activity and your employees' skill levels.

4. Combined SOPs

A combined standard operating procedure uses more than one format: text, hierarchical, or visuals. Some work could require detailed instructions on top of diagrams and charts. This is where a combined SOP works as a cross-functional reference material.

Work such as the following calls for a combined SOP:

• Operating a machine,
• Fire emergency evacuation,
• Warehouse order fulfillment,
• Restaurant food preparation.

The format below works well for any type of activity, regardless of its complexity levels:

1. SOP title: Mention the title number, date, and the person it was approved by.
2. Purpose: Define the reason your SOP was created and what it brings.
3. Scope: Where and to whom does this SOP apply to?
4. Responsibilities: List the persons in charge of approvals. 
5. Instructions: Outline the instructions based on the work.
6. Materials required: The type of tools or resources that are helpful to work with.
7. Notes: What type of records, such as forms or logs, should be maintained?
8. Update date: When was this SOP last modified and by whom?

Certain businesses include a references section with other related documents. While not mandatory, it helps employees gain a deeper understanding of the subject.

SOP creation can get trickier if you don't know why you need one in the first place. You need to define the purpose before starting to write this manual. 

Once that's done, things can start to get simpler when you follow these steps.

Step 1: Define Your Goal

If your SOP does not solve a particular employee pain point, it's as good as not existing. Before creating one, start answering basics like:

• What specific task does this cover?
• Which department will it be useful for?
• What problem does it solve?
• What's the technical knowledge of the person using this document?

If you're in the e-commerce industry, your SOP should define the person liable for processing refunds and mention the exact steps for doing that.

Step 2: Identify Stakeholders

Make sure you know who this document talks to. Is it the operations manager or the customer support team? Or will both teams need it?

Step 3: Give Step-by-step Instructions

Use basic vocabulary to tell users how to perform the task. It's largely helpful when you use numbered lists, as these are easier to scan. 

In the example for the e-commerce company above, an SOP could contain instructions like:

• Receive refund request,
• Verify the order and transaction status,
• Approve the refund,
• Process payment.

Step 4: Use the Correct Format

You don't want to provide diagrams for a task that needs detailed text descriptions. Understanding which format to use makes the difference between employees feeling stuck and successfully following your SOP.

Step 5: Add Supporting Elements

Use screenshots, templates, or forms, as these elements add visual stability. A standardized document format like the PDF can be the right choice to store text and images together.

Various online tools, such as PDF House, Adobe Acrobat, and Smallpdf, allow you to:

• Edit PDFs,
• Convert PDFs into other document formats,
• Update SOPs without having to recreate them.

Step 6: Optimize the SOP

Have team members test your SOP before finalizing it. It's also good to get approvals from all stakeholders to avoid uncertainties.

Step 7: Update the SOP Regularly 

Outdated SOPs can be harmful, especially for teams handling heavy equipment or other critical tasks. Update your document at regular intervals and assign a person to carry out the review process.

Along with precision, which is the most important aspect, follow these good practices:

• Use simple language and be specific. For example, write "Respond to customer queries within two hours using email template A" instead of "Address customer complaints fast."
• Include visuals with text to improve understanding.
• Avoid ambiguous sentences like "Complete the following" without explaining what they are.
• Mention the version number and approval timelines.

Over and above these gold standards, there are three critical aspects you must focus on.

1. Maintain Version Control 

Standardizing document naming methods is vital for teams to work on the most recent SOP version. It's how organizations track revisions and history. 

Make sure to add:

• Version numbers: Use a version control software like Git or manually add numbers to the top of the documents.
• Change logs: Highlight changes and use version control numbers to denote major revisions.
• Approval tracking: Monitor the progress of SOP approvals and tag each under different stages, like "In Review" or "Pending."

2. Ownership Details

Before making any changes to the SOPs, clearly define:

• Who owns the document at each stage,
• The person responsible for updating them regularly.

3. Emphasize Accessibility

Regardless of how many SOPs exist, ensure they're stored in a single space and are easy to access by all employees.

Let all the team members know:

• Where all SOPs live,
• How employees can access these files (on a document control software or digital document management systems).

Digital SOPs are much easier for teams to access on the go. Plus, digital files automatically update as and when you make changes to them.

The table below summarizes the different tools for SOP creation.

Tools useful for SOP development

SOPs are mostly created on cloud-based platforms like Google Docs or Notion, which also serve as knowledge bases for storing all the documents. Once SOPs are reviewed and finalized, they're exported as PDFs for controlled distribution.  

An SOP acts as a reliable tool for your employees to carry out tasks with confidence. And as a business, you get to enjoy consistent operations without having to spend more.

It's never too late to start writing an SOP. Pick a convenient tool and disintegrate the processes so the document solves a major pain spot for your teams.

1. What is the difference between SOP and policy?

An SOP points out the "How to" in the process, while a policy emphasizes the "What and Why."

2. How long should an SOP be?

SOPs can be as long as they need to be, depending on the complexity of your tasks. Documents for simple tasks can be between one and two pages. At the same time, the highly regulated processes extend beyond 20 pages.

3. What format is best for SOPs?

If you're still in the collaboration phase, editable workspaces like Google Docs help with ongoing updates. When SOPs are finalized, exporting them to PDFs can avoid accidental edits and maintain version control.

4. How often should SOPs be updated?

SOP updates can be periodic (quarterly or annual reviews), or event-driven (when processes or tools change). We recommend reviewing them on a scheduled basis to keep teams aligned with the operations.