A standard operating procedure (SOP) refers to a set of step-by-step instructions detailing how specific tasks should be done. It helps ensure important business processes are consistently performed.
Think of it as a detailed guide in assembling a car. You won’t dare deviate from the steps, as the result can be catastrophic. In the same way, businesses—small or big—can avoid unnecessary disruptions if employees follow an SOP.
Table of Contents
- How Can SOPs Help Startups Grow Faster?
- What Are the Types of SOPs?
- How Are SOPs Formatted?
- What Are the Elements of an SOP Template?
- How Do You Create an SOP for Startups?
- Key Takeaways
Read More about a Standard Operating Procedure ( SOP )
An organization may have multiple SOPs that help ease the challenges startups face. Learn more about this important business component below.
How Can SOPs Help Startups Grow Faster?
When companies have SOPs, they enjoy several benefits, including those we listed below.
Consistent Application of Best Practices
While there are many ways to accomplish a certain task, SOPs capture the most efficient and effective steps. Following an SOP means employees don’t need to reinvent the wheel. Instead, they can follow a proven and tested path, ensuring that best practices are consistently used by all employees all the time.
Quality Control
Imagine a restaurant with several chefs, each following the same recipe. The food will taste the same anytime, regardless of who the chef is. That is what an SOP does for businesses. It sets clear guidelines for how certain things should be done. It minimizes variations, which leads to a consistent level of quality. As a result, brand reputation and customer loyalty are built.
Employees Get Trained Quickly
New hires can use SOPs as cheat sheets. Their learning process is faster and less stressful because they have explicit instructions to follow. For businesses, this means new employees become productive and contribute to the bottom line quicker. They also save time and resources on training sessions.
Errors Get Minimized
While it’s true that humans make mistakes, SOPs can significantly reduce the risk these errors can pose. Step-by-step guides minimize confusion and leave less room for guesswork. Following SOPs increases the chance of doing things right the first time, which leads to a more efficient team and fewer customer complaints.
Compliance Requirements Are Met
SOPs help companies meet regulatory and compliance requirements. They typically outline the specific steps needed to stay compliant. Not only will this keep organizations out of trouble, but it also builds trust with customers and partners.
What Are the Types of SOPs?
SOPs can be grouped in two broad categories—technical and management.
| Differences | Technical SOP | Management SOP |
| Focus | How to perform a specific task | How to manage processes, people, and resources |
| Content | Step-by-step instructions for doing a task | Guidelines and procedures for overseeing a certain task or process |
| Purpose | Consistent execution of tasks | Consistent management practices |
| Level of detail | Highly detailed, specific instructions | Broader guidelines, but may include some specific steps |
| Audience | Employees performing the task | Managers, supervisors, and administrators |
Technical SOPs provide the nitty-gritty or step-by-step guides for doing something specific, such as:
- How to troubleshoot a piece of equipment
- How to fulfill an order
- How to run a particular software
- How to install an operating system (OS)
- How to adjust the settings of a camera
Anything that involves a specific set of actions to achieve a desired outcome usually falls under the technical umbrella.
Meanwhile, procedures that are about overseeing team members and the administrative aspects of the business commonly fall into the management category. They guide how you manage processes and resources (including people). A few examples include:
- How to onboard a new employee
- How to manage employee performance reviews
- How to handle customer complaints
- How to conduct a safety inspection
- How to manage inventory
How Are SOPs Formatted?
You may encounter different ways of presenting standard procedures. The format ultimately depends on your company’s preferences and specific needs. Some of the most common formats are listed below.
Step-by-Step Guide
This is your classic, numbered list. This format is commonly used for simple processes, such as onboarding a new software engineer. The procedure may look something like this:
- Send a welcome email with pre-employment paperwork and IT setup instructions.
- Prepare a new hire welcome packet (e.g., employee handbook).
- Create an employee account in the HR system and assign an employee ID.
- Welcome the new engineer and provide an office tour.
- Distribute welcome packets and review company policies.
- Complete required paperwork (e.g., tax forms).
- Provide an access badge and office supplies.
- Introducing the new engineer to the team.
- Assign a buddy for initial guidance and support.
- Review the team’s development processes and coding standards.
- Set up the development environment on the new hire’s company laptop.
- Grant access to relevant code repositories and project management tools.
Checklist
SOPs formatted as checklists are suitable for repetitive tasks where you need to make sure every step is completed. For example, tech startups usually have a pre-deployment checklist—a set of tasks that helps make deployment smooth and error-free. Here are some items that may be on that checklist.
- Feature development completed and tested thoroughly.
- Code reviewed and approved by a senior engineer.
- Unit tests passed with 100% coverage (or agreed-upon percentage).
- Integration tests passed.
- Performance testing completed and results acceptable.
- Documentation updated (e.g., application programming interface [API] docs and user guides).
- Deployment plan created and reviewed.
- Backups of production databases and files created.
- Communication about the upcoming deployment sent.
- Production environment verified to be stable.
Flowchart
Flowcharts use diagrams with shapes and arrows to illustrate the flow of a process. They are excellent for showing decision points, alternative paths, and complex workflows. For example, steps in handling customer complaints can be clearer using a flowchart. Below is a sample.
Hierarchical
This format uses a numbered outline or tree-like structure to break down complex processes into smaller, more manageable chunks. It’s great for SOPs that have multiple levels of detail or involve several decision points.
For example, the employee onboarding process we discussed in the step-by-step SOP format can be broken down into main sections to make the overall process manageable. The SOP would look like this.
- Prestart date (HR):
- Send a welcome email with pre-employment paperwork and IT setup instructions.
- Prepare a new hire welcome packet (e.g., employee handbook).
- Create an employee account in the HR system and assign an employee ID.
- Day 1 (HR/Office Manager):
- Welcome the new engineer and provide an office tour.
- Distribute welcome packets and review company policies.
- Complete required paperwork (e.g., tax forms).
- Provide an access badge and office supplies.
- Day 1 (Engineering Manager):
- Introduce the new engineer to the team.
- Assign a buddy for initial guidance and support.
- Review the team’s development processes and coding standards.
- Set up the development environment on the new hire’s company laptop.
- Grant access to relevant code repositories and project management tools.
Narrative
Lastly, we have the narrative form. This format uses a more descriptive storytelling approach. It explains the “whys” behind each step and provides context. The narrative format is good for complex processes that require a deeper understanding of the steps.
What Are the Elements of an SOP Template?
An SOP must have all the basic elements—the title page, purpose, scope, procedure, and responsibilities. These provide details about the document’s objectives, boundaries, steps, and the people involved in the process.
SOPs may also have custom fields, such as statuses, departments, and priority levels. There are also pre-made templates that startups can use and customize.
How Do You Create an SOP for Startups?
Startups may find the process of creating SOPs challenging. It requires time and effort that can be invested in other areas. However, we’ve established that having these documents is beneficial. With the right mindset and approach, creating SOPs can be achievable. Here are some steps to follow to make the process smoother.
Identify and Prioritize Key Processes
Brainstorm which crucial tasks occur regularly. Onboarding new hires? Handling customer support? Deploying code? Recurring processes that are complex most likely need an SOP. But you don’t have to document everything at once. You can start with the most critical processes first, specifically those that drive the most outcome.
Involve the Right People
Talk to the people involved in the process for which you’re creating an SOP. They are the best source of information as they know the nuances, potential pitfalls, best practices, and even the shortcuts (at least those that are actually good ideas). Ignoring their input is like trying to write a cookbook without talking to any cook.
Choose the Suitable Format
Once you know what the SOP will contain, you need to decide on the format. It can be step-by-step, flowchart, checklist, hierarchical, or narrative—whatever makes the process clearer to the intended audience.
Write the SOP
Now, it’s time to actually write the SOP. Keep in mind the basic elements that it should contain, such as the title page, purpose, and scope. It’s also important to avoid jargon as much as possible so the document remains simple and easy to understand.
Key Takeaways
- An SOP’s meaning in business is a detailed set of instructions detailing how specific tasks should be done.
- The document helps startups produce consistent outputs and quality.
- It also smoothens employee training, minimizes errors, and helps ensure regulatory compliance.
- It can be the technical or management type.
- It can come in a step-by-step guide, checklist, flowchart, hierarchical, or narrative format.
Sources
- https://www.waybook.com/blog/how-standard-operating-procedures-sops-help-startups-get-traction-and-scale-fast
- https://clickup.com/templates/sop/startups
- https://usewhale.io/blog/sops-for-your-startup/
- https://www.getmaintainx.com/blog/two-types-of-standard-operating-procedures-technical-and-management
- https://document360.com/blog/standard-operating-procedure/
