SOP (Standard Operating Procedure)

Documented step-by-step instructions explaining how to perform specific business tasks or processes consistently and correctly. SOPs detail each action required, including what to do, how to do it, when to do it, who's responsible, and what tools or resources are needed. Effective SOPs enable delegating work confidently, maintaining quality across team members, training new people efficiently, identifying improvement opportunities, and scaling operations. SOPs should be clear enough that anyone following them produces consistent results. They're essential for building valuable, sellable businesses since they demonstrate the business isn't dependent on founder knowledge. Creating SOPs is tedious but AI dramatically accelerates the process.

Why it matters

SOPs transform businesses from founder-dependent operations into systematised entities that run without constant oversight. Documenting processes enables delegation, scaling, and eventually selling businesses for premium valuations.