3 Reasons why SaaS Start-Ups Should Prioritize SOC 2 Compliance
Updated: Apr 20
SOC 2 has become the de facto standard for SaaS companies to build trust with enterprises and unlock sales opportunities. As a result, most SaaS companies are heads-down focused on building a better product to serve their customers and grow the business.
Most days, it feels like survival mode, so it can be challenging to focus on SOC 2 compliance. Here are three reasons why you should prioritize SOC 2 compliance in the early days:
Get it right from the beginning. 🙌🏽
It can be tempting to take security shortcuts in the early days, but all this does is delay the inevitable. At some point, you'll have to start to take security seriously and invest engineering and operational resources into building a cybersecurity program.
By focusing on SOC 2 compliance early in your startups' life, you'll make a compliant application and company when your team is the smallest, and your footprint in the cloud is the smallest it's ever been. We think a lot about scaling in startups and setting up our companies to scale, but you rarely see this translate to scaling security.
Building security and compliance into your company from the beginning allows you to scale that security program and not waste valuable resources later on when all attention should be focused on growth. The quote from Benjamin Franklin comes to mind here, "An ounce of prevention is worth a pound of cure."
Increase sales velocity 📈
We see a typical scenario at ByteChek when early-stage SaaS startups are coming to us in a panic. They have a big deal that is being held up because they missed a SOC 2 report. This sometimes results in sales personnel losing out on deals because the company cannot complete a SOC 2 fast enough.
Earning a SOC 2 can take up to 4 weeks (12 weeks if you're not using ByteChek), which is valuable when an enterprise customer is ready to sign.
Being proactive about SOC 2 allows you to rapidly respond to requests for proposals (RFPs) and close deals without having to rush through the SOC 2 process, which includes finding a vendor, going through a readiness process, remediating control gaps, going through the reporting process and ultimately earning your SOC 2 report. Instead of panicking and reacting to potential customer demand, you can be prepared and increase sales velocity.
Save time and money 🕰 💵
Startups are relentlessly focused on maximizing their team's time and ensuring you have enough cash to continue growing the business. By prioritizing SOC 2 compliance in the early days, you can guarantee savings in both time and money because of how small your company and technical footprint is at this stage of the company.
As you scale your team and application, the time investment and financial commitment it takes to build a robust cybersecurity program to earn your SOC 2 only increases. As a startup, it is excellent to work with other startups that understand where you're at in your startup journey and have customized solutions designed to work with startups.
You can find companies like ByteChek, who have developed solutions specifically to help startups and small businesses build, manage and assess their cybersecurity program.
We wrote in a previous article 5 reasons why startups get SOC 2 Type 1. Read it here.