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May 5, 2026

Standard Operating Procedures

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Show Notes
Transcript

Michael Barbarita of Next Step CFO and Powerful Business Strategies will discuss Standard Operating Procedures – They are now less burdensome to prepare with AI and they will increase the value of your business.

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You have done too far censure.

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Wow for you young. This is the pipe Man here

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on the Adventures pipe Man W four c Y Radio

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and this is our positively Pipeman segment and we have

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our resident expert on business with some powerful business strategies.

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This week we're going to talk about procedures. What does

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that even mean? Michael Barberita, can you tell me what

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that even means and how we handle it?

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Yes? Well, first of all, it was a dirty word.

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It's been a dirty it still probably is a dirty

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word for most business owners. They for the most part,

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business owners absolutely see the value in it. And I'll

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describe it in a second, but they absolutely see the

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value in it. But the work involved historically has been

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nothing should have devastating. So what a standard operating procedure

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is or s OP is, It's a it's all taking

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each hit, every process in your business and putting it

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on paper as to what that process is and the

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value that that has is a couple of fold. One,

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it allows a new employees to understand process the process

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in your business much easier than some type of training program,

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although the training program should still be employed. The s

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OP accelerates the understanding for a new employee. Secondly, when

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a buyer is looking to buy your business and you

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show them your s ops, you know, when they're under

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a confidentiality agreement of course, then you can, uh the

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value of your business goes up dramatically because everything, every

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every part of your process is documented. Now the horror

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show historically has been preparing those you know, some people

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have their employees prepare them. Uh, each individual employee prepares

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like to do of what they do all the time.

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But it's that's not a homogeneous standard operating procedure. That's

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the collaboration of multiple documents that make up a standard

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operating procedure. So but what I found is is I

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and I've done it for a client recently. When an

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employee when who understands the process and the processes if

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there if there's multiple processes, uh, the employee puts together

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an outline of the process. Now if there's ten different processes,

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then the employee that does ten different outlines, we put

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it into preferably and it doesn't have to be but

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preferably either you know CLAUDE or chat GPT, and preferably

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CLAUDE because of project knowledge. But anything could be argued

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on that it doesn't matter. And then that outline is

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put into your your your robot, whether it's a CHAT,

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GPT or claude, and they print out the s OP

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in a in a a format that you want because

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you also explained to the AI that you want a

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specific format, and it prints out the s OP and

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the person, the employee who gave you the outline, he

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edits it and that's it. And I was able to

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produce s ops for my client. We have fifteen SOPs.

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It's in the trades. We produce those SOPs and about

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a grand total of about six or seven hours, and

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that includes the outline that was prepared. Once it got

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to me and I did the sop, it literally took

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me maybe three minutes, but it took him about six

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or seven hours in total to put together all the outlines.

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And that's it and what used to take and if

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you ever were going to do that manually as some

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companies have done, it's days and days of work, days

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and days. So it's a really it's a very effective

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way to generate SOPs and there's plenty of value in

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it with new employees but also existing employees too, because

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you can't take for granted that the existing employees know

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the process right exactly. Yeah, so that's dangerous.

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Uh.

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And as a matter of fact, the sps I put

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together for my clients, some of the employees that have

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been there for years were enlightened about some things. So

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so it has that value. Then of course at resale

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or at exit, it has tremendous value because a buyer

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puts a lot of stock in a company that is

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that organized and has standard operating procedures.

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In place, it makes for an easy transition too.

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Yeah, absolutely, And that's that adds value to the to

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the to the business. Uh And so uh, I have

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found it to be a real something that was not

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even in a conversation that a business owner should put

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together s o p s because of the burden associated

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with preparing them to Now it's definitely clearly in the

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conversation and a lot less burden.

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Nice. So how do people reach out to you to

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get more information on this and other things that you

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do to help those in businesses, Well.

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If they go to our website NEXTSTEPCFO dot net. In

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the upper right hand corner is an orange button. What

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that orange button is it's an AI business assessment that

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takes less than ten minutes, that will find three strategies

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related to their business, the impact that that strategy could

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have on the business, on the revenue impact, and a

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little explanation of how to go about implementing that strategy.

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And that's free and it takes less than ten minutes.

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So if they go to the website, they'll see find

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hidden Revenue an orange button that says find hitting revenue

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in less than ten minutes and they could click that.

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They could go to it free of charge and find

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out what what what's that that hidden revenue of fifty

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to one hundred thousand dollars that's hiding in their business

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in three strategies.

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Wow. Well, once again, you're a wealth of information and

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very helpful for all our listeners who have a business,

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and everybody needs to check out you. Michael Barberita, next

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step CFO, and I think you'll be very happy that

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you did. Thank you, Thank you for listening to the

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Adventures of plate Man on w for CUI Radio.