How to Write Simple SOPs for Your Small Business
In a new business, most of the know-how lives in the owner's head. That works until you hire your first employee, take a week off or see the same mistake happen twice. Standard operating procedures (SOPs) put that know-how in writing, so routine work is done the same way no matter who does it.
SOPs do not have to be long or formal. A good one is a short, clear set of steps that a new team member could follow without calling you. Here is how to choose what to document, how to write it and how to keep it useful as your business grows.
What an SOP is, and what it is not
An SOP explains how a recurring task is done in your business, step by step: for example, how to send an invoice, process a refund or set up a new client.
A policy states a rule and the reason for it, such as your refund window. The SOP explains how staff carry that rule out.
A job description lists a role's duties. SOPs show how the specific tasks within that role are done.
The format is flexible. A checklist, numbered steps, a simple flowchart or a short screen recording with written steps beside it can all work. Pick what suits the task.
Decide what to document first
You do not need an SOP for everything. Start with three to five processes that meet one or more of these tests:
Frequent: done daily or weekly, such as invoicing, order processing or opening and closing.
Costly when done wrong: taking payments, refunds, payroll inputs or anything involving safety.
Known by only one person: if only you know how to do it, the business stalls when you are away.
About to be handed off: tasks you plan to give to a new hire, contractor or virtual assistant.
Tied to rules you must follow: record-keeping, customer privacy and workplace safety (more on these below).
Use a simple, consistent template
Keep every SOP in the same format so people know where to look. A one-page template can include:
Title and purpose: what the procedure achieves, in one sentence.
Trigger and scope: what starts the task and when the SOP applies, such as "when a new order arrives by email."
Owner: the person responsible for keeping the SOP accurate.
What you need: tools, templates, forms and system access. Never write passwords in an SOP; keep them in a password manager.
Steps: numbered, in the order they happen.
Definition of done: how to check that the task is complete and correct.
Version and last review date: so everyone knows they have the current copy.
Write steps anyone can follow
Watch the task being done. Ask the person who does it best to walk through it while you take notes or record the screen.
Start each step with a verb. "Open the order form." "Check the shipping address." "Save the receipt to the Receipts folder."
Keep one action per step. If a step contains several actions, split it.
Show decision points. "If the customer pays by e-transfer, go to step 6. If they pay by card, go to step 8."
Add screenshots or photos wherever words alone could be misread.
Flag common mistakes beside the step where they usually happen.
Test the draft. Ask someone who has never done the task to follow the SOP while you watch without helping. Wherever they hesitate, rewrite.
If writing an SOP shows that a process has unnecessary steps or workarounds, fix the process first. Documenting a broken process only spreads the problem.
Build in the rules that apply to your business
SOPs are a practical way to make sure everyday work follows the rules your business is subject to. A few Canadian examples:
Business records: The Canada Revenue Agency (CRA) generally requires businesses to keep records and supporting documents for six years from the end of the last tax year they relate to. An SOP for how receipts and invoices are named, filed and backed up turns this into routine.
Customer privacy: Under the federal privacy law, PIPEDA, organizations are expected to have policies and practices for protecting personal information and to train staff on them. In Alberta, most private-sector organizations are covered by the provincial Personal Information Protection Act (PIPA) for information handled within the province, and it requires them to develop and follow reasonable policies and practices. Short SOPs for collecting, storing, sharing and disposing of customer information help your team apply them.
Workplace safety: For tasks that involve equipment, chemicals, lifting or driving, build the safety steps into the procedure. In Alberta, employers must assess work site hazards, involve affected workers and make sure workers are trained to work safely (see the province's guide to OHS for employers). Saskatchewan employers must make sure workers have the information, training and supervision to do their jobs safely. A written procedure supports these duties, but it does not replace a hazard assessment or proper training.
Store, train and keep SOPs current
Keep one home for all SOPs, such as a shared folder or internal wiki, grouped by area: sales, finance, operations and people.
Use clear names, for example "Finance 03: Paying supplier invoices," so anyone can find the right one.
Train with them. Walk new team members through each SOP, let them do the task while you watch, and sign off when they can do it alone.
Review on a schedule, at least once a year and whenever a tool, supplier, price or rule changes.
Ask for feedback. The people who use an SOP every day know best where it is out of date.
Track changes with a short note at the end, such as "Step 4 updated for the new payment portal."
How First Global Citizen can help
We help founders and small teams map their key processes, write clear SOPs and checklists, and organize them into a simple operations manual that a new hire can use from day one. We can also help you plan onboarding around your SOPs, and our self-paced online business courses, including project management and managing money and budgets, help you and your team build the skills behind smooth operations.
As explained on our how we work page, we agree the scope and a fixed fee in a written proposal before any work starts. Where a procedure touches legal, tax or accounting requirements, we coordinate with independent licensed professionals, with your consent, rather than giving that advice ourselves. To talk about which processes to document first, book a free consultation.
This article is general information only. It is not legal, tax, accounting or financial advice. Fees and requirements can change, so confirm current details with the relevant government agency or registry. For advice about your situation, consult a qualified professional.
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