Discuss the need for and the value of documenting your business operations.

Question

What will be an ideal response?

Answer 1

In order to correctly document your business operations, you must understand how processes, procedures, and work instructions relate to each other. A process is the business activities necessary to convert inputs into desired outputs. This is what a business does when it takes some raw material and converts it into a valuable output. This applies evenly to manufacturing and service businesses. A procedure is the series of steps and activities required to complete a process. Work instructions are specific guidance for completing steps in a process.
For a new, one-person business, start documenting the decisions you make and the transactions you conduct which comprise your business operations. If your business has already grown and you have employees, use the same process but enlist the involvement of your employees and consultants. A typical start to the task of documenting the processes of an operating business is to start from the top down. It is very important that you realize that every business process does not have to be extensively documented. Some procedures are so routine that you would add no value by re-writing them. The procedures you want to document are those that you must because of governmental regulations and those that are essential to your business.
Developing a set of business procedures is time consuming, and expensive. However, if done correctly documenting your business will provide many benefits in the form of fewer employee mistakes, less waste and scrap in your processes. Also, having extensive documentation of the essential and unique processes of your business will make selling it much easier when the time comes to do so.