

It’s crucial that every small business—no matter its size—has a business operations handbook. Your handbook should include your standardized operating procedures, so your staff knows how you expect the company to be run if you are away from your business. Operations handbooks are your team’s go-to manual for handling any situation, from employee break times to how to cope with angry customers.
Although the exact contents of your operations handbook depend on your industry and business, the following is a general guideline to help you create your operations handbook:
This section should comprise the bulk of your operations handbook, including how company processes work and any policies related to employees and customers. Policies are rules (what to do and what not to do). Procedures are step-by-step explanations of tasks. The legal requirements of what must be included vary by state.
Federally, employee sections of handbooks (or separate employee handbooks) must include the following:
State labor laws determine what other information your operations handbooks should contain regarding employees.
For example, depending on how many employees the company has, the following are required policies in California (CA):
You may want to create a separate section for key personnel or managers. The manager section would include critical information you don’t want all employees to have access to, such as:
You will also need to include sections explaining the policies and procedures for each department. For example, if you own a retail store, you might have a policy of accepting returns within 30 days with a receipt and procedures for processing returns and issuing refunds.
You should include policies and procedures for:
Depending on your type of business, this section could cover everything from how to greet customers to outlining return policies. For service businesses, focus on how you’d like customers to be treated, what extras employees can offer to make a sale, when a supervisor should be called in to handle an upset customer, etc.
Two additional sections should be included in your operations handbook to keep your business running safely and efficiently—cybersecurity and remote working policies.
To keep your business safe and prevent putting your critical information at risk, you must establish cybersecurity policies for employees to follow. Require employees to protect and update passwords according to a set schedule and to use company antivirus software programs. Other recommendations, such as safe email practices, should also be included. Check out the FCC’s free cyber planner wizard to create custom cyber guidelines for your company.
Now that more businesses operate under a hybrid work model, your operations handbook should include guidelines and policies regarding when and how employees can work from home. Besides cybersecurity policies, work-at-home (WAH) procedures should include required hours, approved software technology, and communication obligations.
Most companies today make the operations handbook available to view and download from the company website or intranet. Having the handbook in the cloud makes it easy for you to update and for employees to access. Keep your handbook current, and have employees review it periodically. This helps ensure your business is in good hands, even when you’re not around, and enables smoother business operations.
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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.