Documented Systems = Higher Valuation: Here’s Why SOPs Sell
Jun 4
4 min read
0
3
0
You started your business with a dream and a to-do list. You wore every hat, handled every crisis, and probably still know how to do every task better than anyone else on your team. We respect that hustle. But if your business still lives entirely in your brain—or worse, on sticky notes—then we need to talk about SOPs.
Yes, Standard Operating Procedures.
They may sound boring, but in the world of business valuation and M&A, documented systems are pure gold. SOPs aren’t just for big corporations with legal departments and corporate training manuals. They’re for you—the solo founder, the family business, the growing team that’s figuring it out as you go. And they matter more than you think.
What Is an SOP, Really?
An SOP (Standard Operating Procedure) is a documented process that outlines how a task gets done—from the tools involved to the step-by-step instructions that ensure consistent results. Think of it as a playbook your team can follow even if you’re out sick, on vacation, or (one day) sipping margaritas after a successful exit.
But not all SOPs are created equal. Let's break them down.
Types of SOPs and When to Use Them
Administrative SOPs Examples: Payroll processing, email protocols, scheduling meetings
Why they matter: These keep your internal engine running smoothly and show buyers that your office isn't run like a Wild West saloon.
Operational SOPs Examples: Order fulfillment, service delivery steps, quality control
Why they matter: These touch your customer. Consistent operations = reliable customer experiences. That’s very attractive to buyers.
Sales & Marketing SOPs Examples: Social media calendars, lead nurturing sequences, proposal templates
Why they matter: If your customer pipeline runs off instinct and vibes, it's time to document. A business that knows how to generate revenue is one that sells well.
HR & Training SOPs Examples: Onboarding new employees, performance reviews, termination protocols
Why they matter: The ability to train and retain talent without you in the room increases scalability and reduces perceived risk to buyers.
Financial SOPs Examples: Bookkeeping routines, monthly reporting, budget planning
Why they matter: A clean financial picture is required in every deal. But a repeatable financial process? That’s a business built to last.
Why SOPs Are a Big Deal in M&A
When buyers look at your business, they’re not just buying your brand or your client list. They’re buying your systems—or at least, they hope you have some. The more your business can function without your daily input, the more valuable it becomes.
A well-documented SOP tells a buyer:
“This business is scalable.”
“This business can survive a leadership transition.”
“This business can grow with the right team, not just the right founder.”
It's not just about showing you’ve done the work. It’s about showing how you do the work—and proving that someone else can step in and keep the magic going.
When Should You Start Documenting SOPs?
Short answer: Now.
Long answer: Different SOPs are useful at different stages.
Here’s a quick guide:
🏁 Startup Stage (0–2 Years)
You’re still figuring things out—but every time you repeat a task, you’ve found something worth documenting. Start with:
Customer onboarding
Fulfillment process
How you answer the phone or emails
Why? These habits become your company’s “voice.” Capture them now, while they’re fresh.
🚀 Growth Stage (3–5 Years)
You’re hiring people. You’re scaling. If you’re explaining the same thing to every new employee, that’s a process in need of an SOP.Build out:
HR and training procedures
Sales pipeline steps
Financial reporting workflows
Why? You’ll save hours—and headaches—by having these steps written down.
🧩 Mature Stage (6+ Years)
You’re a seasoned operator, and maybe you're thinking about stepping away one day. Refine and polish:
All SOPs into a formal Operations Manual or SOP Binder
Include screenshots, video tutorials, and templates
Why? A business with a turnkey handoff process is far more attractive to buyers—and often fetches a higher multiple.
How to Build SOPs Without Losing Your Mind
Creating SOPs doesn’t have to be an all-at-once, corporate-style project. Try this instead:
Pick One Process a Week. Start small. Choose something you (or your team) does repeatedly.
Record It Live. Use a screen recorder or have someone take notes while you do the task. No need to reinvent the wheel—just capture what’s already happening.
Template It. Convert those notes into a checklist, flowchart, or video. Make it easy to follow.
Test It. Hand it to someone else and see if they can complete the task using only the SOP. If not, revise.
Store It. Centralize your SOPs—cloud storage, a physical binder, or a system like Notion or Trainual.
Update Quarterly. Business evolves. So should your documentation.
One More Thing: SOPs Aren’t Just for Buyers
Even if you’re not planning to sell for 10 years (or ever), SOPs save you time, reduce stress, and make your business more resilient.
They free up your brainpower for strategic decisions instead of constant re-teaching. They give new hires a smoother ramp-up. And yes, they make your business dramatically more attractive to future buyers, partners, and investors.
Final Word from the Sidelines
We’re proud of you. Starting a business isn’t easy. But building one that runs without you? That’s legacy-level stuff. That’s the difference between owning a job and owning an asset.
You don’t need to be perfect. You just need to get started.
And if you need help building out your SOP library—or figuring out what buyers are really looking for—Trending Up Business Services is here to coach you through it. 🏆
Need a jumpstart? Fill out our SOP Binder Resource or schedule a free Discovery Call to start building systems that sell.
