Early Stage SOC2 Strategies
Startups, particularly in the early stages, often find themselves juggling various priorities as they strive to grow and scale. While the focus primarily leans towards product development, sales, and customer acquisition, there's an increasingly pivotal area that needs attention—security compliance. For those in the B2B space, especially targeting enterprise clients, security becomes a key determinant in sealing larger deals.
The Security Factor in Sales
Surprisingly, small to medium-sized businesses (SMBs) may not be overly concerned about the security aspect of your product or service. However, when it comes to large enterprises, security can be a deal-breaker.
A study by G2 reveals that 86% of buyers require a security assessment prior to purchase1, an impactful statistic that underlines the gravity of having your security in order. However, only 24% involve a security stakeholder during the research phase, implying that early security assurances can streamline the sales process by minimizing the involvement of security personnel. This often results in a smoother, more efficient sales journey.
The Value of SOC-2
Among various security certifications, SOC-2 stands out as the most common and relevant for SaaS companies. Achieving SOC-2 compliance sends a powerful message to potential enterprise clients about your commitment to security and data protection, a prerequisite to closing substantial deals.
Preparing for SOC-2
Preparing for SOC-2 certification involves considerable work and financial investment, usually within the range of $5,000 to $10,000 per year. However, when balanced against the potential revenue from closing large enterprise deals, this investment becomes justifiable.
Even if your budget does not permit immediate SOC-2 certification, it's advisable to plan ahead. Engage with vendors, understand the requirements, and get the initial paperwork in order. By laying the groundwork, you can expedite the certification process when the time comes, thus keeping any associated scramble to a minimum.
Implementing Best Practices
While preparing for SOC-2 certification, it's crucial to implement robust security practices within your organization. The certification process will scrutinize your security framework, so establishing these measures is not merely a box-ticking exercise but a necessity to ensure data protection and instill confidence in your clients.
Conclusion
Investing in security compliance, particularly SOC-2 certification, is an investment in your startup's growth. This not only fortifies your product's security but also bolsters your sales efforts, particularly when targeting enterprise clients. Start preparing early to reap the benefits as you scale beyond the early stages.
The sales team, assuredly, will thank you for this.
References:
1. https://research.g2.com/hubfs/Buyer-Behavior-Report-2023.pdf