Do You Really Need SOP's For Your Business?


Do you ever wonder why some businesses are able to scale from boutique or mom and pop size to insanely profitable businesses generating seven figure revenue?


The short answer is that they have all the right systems in place.


This means that no matter who steps up to fill a role, they are able to succeed because the systems are already in place and support them.


You might be wondering what kinds of things fall into this category.


Even though many of these systems (aka standard operating procedures or SOP's) are not in the public eye, they all work in synchronicity to make your business run like a well oiled machine.


There are several kinds of systems that enable businesses to scale...even though most people pay attention to only one kind (that's why it's called the tip of the iceberg).

One example of this is the business systems that entrepreneurs use to build their products. They also run training programs for their consultants (or whatever you want to call them).


Another system is the way they handle marketing and sales. They typically do not rely on advertising campaigns because this would be too expensive to sustain long term. Instead, they have a sales funnel in place that generates revenue on autopilot.


Another system is the way you manage your human resources. This includes managing leadership and culture, onboarding processes for new team members, training programs, performance standards and assessments, etc.


Yet another system is the way that entrepreneurs create products or services.


When you have a system that can be replicated many times, you have a business that is scalable.

There are systems in place to keep your business running smoothly and profitably when you scale up because you don't want to spend an exorbitant amount of time trying to manage the minutiae every day.

When all these different areas come together it creates a business that is scalable and able to grow without adding more staff.


When you can add resources (people, money, etc.) and see an increase in the revenue generated by the business your systems are working like a well oiled machine. For example:

If you're only getting 10 leads per week but each one of those leads provides $5,000 in revenue then you don't need more than 10 leads. But if each one brings in $50,000 (or even better...$500,000+) you will want to find ways to get more leads.


This is where systemizing your sales process comes into play. If you can create a system that is predictable, can be replicated many times and is profitable then you will see your business grow tremendously.

Do you need systems in place to help you scale?



Not necessarily. If it's possible for you to do this all on your own or with a very small team then that might work just fine. The downside of this is that it takes a lot of time and you might burn out.


If you prefer to stay small and just want to create a few products or offer a couple services then simply creating them will be your business system.


But if you prefer to work with other people and grow the company so that they can also get paid for their efforts then you will need to invest some time into developing systems.


It's a good idea to have a system for each of the following areas:

- Product creation and management

- Marketing and sales pipeline/funnel

- Human Resources

- Customer service processes (aka customer success)


Although not everyone can do all these things, know that you only need to focus on the areas that are your current strengths.


If you have a team of people who can handle all these responsibilities then great! But if not, pick the one or two areas where you want to improve and start working on those.

When it comes to systemizing your business for scalability there is no right or wrong way. Some entrepreneurs like to wake up and create the new product every day and then sell it and move on to the next one while some prefer to repeat this process several times over.


Well what do you think? Do you need help with your SOP's? Click the link below and we can figure out what SOP's make the most sense for your business!


https://www.thesantanacollective.com/