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Top 5 Most Common Compliance Mistakes Startups Must Avoid

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Embarking on the path to compliance is no easy feat, and small businesses often find themselves navigating this complex terrain completely blindfolded or tempted to take shortcuts. Big mistake!  

In this guide, we uncover the most common compliance mistakes every startup and small business must avoid. We will explore each mistake and provide insights on how to steer clear of these pitfalls so that you can achieve your SOC 2, ISO-27001, HIPAA, CMMC, or NIST certification smoothly. 

Let us be your guardian angel and join us on this journey as we decode the intricacies of compliance, ensuring you're well-equipped to navigate the ever-evolving landscape of regulatory requirements:  

  1. Risks of Not Having an Internal Audit
  2. Avoid Badge Hunting - Which Compliance Framework is Right for Me?
  3. Not Choosing Compliance Automation Software
  4. Consequences on Non-Compliance Culture
  5. The Importance of Staying Compliant as a Small Business 



Risks of Not Having an Internal Audit

An internal audit offers a unique opportunity for preparation and serves as a mock exam or practice run for the external compliance journey. It familiarizes your organization with the compliance requirements and expectations, ensuring a smoother transition to the external audit.  

Additionally, the internal audit provides valuable insights into the effectiveness of existing policies and controls, helping not just compliance preparedness, but also revealing your security posture and ways to improve it.  

Skipping this step is like going into the external audit blind, which might lead to costly surprises later, as addressing compliance issues during the external audit tends to be more expensive than resolving them internally.  

And believe it or not, here’s where a lot of small businesses fail. Without considering it, they have already set themselves to fail before even starting the compliance audit process. Internal Audits are your friends, they warn you and prepare you for the future. 

Read our article and learn more about what an internal compliance audit is and how to make the most out of it! cover image for article on what is internal audit

 Don't gamble; do that internal audit first! 

  

Avoid Badge Hunting - Which Compliance Framework is Right for Me? 


Compliance is not about getting a badge because everyone else is doing it!

You must carefully consider which compliance framework to pursue rather than choosing one randomly for the sake of it. Selecting a compliance framework without thoughtful consideration can lead to inefficient processes, wasted resources, and potentially missing the mark on actual compliance needs.  

Different industries and business types often have specific compliance requirements. Choosing a framework at random may result in adopting standards that aren't directly applicable to your operations or are not what your customers are expecting.   

For example, if you do business internationally or are considering expanding your market, you will benefit from being ISO-27001 certified. But if you don’t do business with customers outside of the US, then SOC 2 may be a better solution for your company.   

Compliance efforts demand a substantial investment of time, money, and manpower, requiring a clear understanding of your willingness and capability to commit. Choosing the appropriate framework ensures that resources are used efficiently.  

 

Not Choosing Compliance Automation Software  

Compliance is a marathon, not a sprint. Don't exhaust yourself with manual tasks! 

list of things compliance automation does for you and how they benefit your small business

You might underestimate the time and care it takes to properly collect and register all the documentation needed to prove the evidence of your security measures for the correct standards and regulations.  

Compliance Automation for small business and startups streamlines this process, generating comprehensive reports, issuing real-time alerts, and notifying you of any compliance gaps or potential issues. These are aspects that manual efforts might overlook.  

Automation not only expedites the compliance journey, but it also enhances accuracy. It gets your business to address potential pitfalls, saving time and resources while maintaining a robust and error-free compliance posture. It’s the fastest way to get compliant and stay on track! 

 

Consequences of Non-Compliance Culture     

Even the best policies are useless if your team doesn't understand them and know them. Unawareness leads to unintentional non-compliance and potential chaos. Invest in training programs to build a compliance culture year-round, not just when the audit is around the corner.  

Conduct meetings to discuss compliance plans, new policies, and any updates to existing protocols. These gatherings provide a platform for open communication, allowing employees to ask questions, seek clarification on any uncertainties, or provide feedback and ideas to implement.  

Additionally, supplement these meetings with comprehensive learning materials, ensuring that your team has access to resources that aid in understanding complex compliance concepts. 

Provide easy access to policy documents, creating a centralized repository for employees to refer to when needed. This not only fosters transparency but also empowers your workforce to take swift and informed actions if something suspicious or non-compliant arises 

Remember, a well-prepared team is your first line of defense against compliance mishaps! 

  

The Importance of Staying Compliant as a Small Business  

Getting compliant is just the beginning; staying compliant is the real game-changer.  

Any compliance framework is not a one-time achievement but a continuous effort. Certification entities want to know you're in it for the long haul, and so do your customers!  

A lot of small businesses and startups focus only on getting compliant, not on staying compliant. But think about it: an outdated report is of no use. Over a year, your business changes, the industry advances, and cybercriminals also evolve. You need to stick to your security measures, continuously test them, and stay up to date with requirements and advanced threat protection solutions. 

Here’s where Managed Compliance for small business or Compliance as a Service (CaaS) comes in. With CaaS, businesses can maintain compliance without stretching internal resources too thin. It’s an ongoing solution that ensures you’re always ahead of the game. 

Plus, the first time is always the trickiest. Attaining your first compliance attestation or certification makes it easier to prepare for others.  

 

Final Thoughts 

And there you go – the top 5 most common compliance mistakes, all decoded just for you. Navigating compliance doesn't have to become a cyber-hell; after all, it is in your organization’s best interest. 

Avoid these common mistakes, don't underestimate the importance of compliance, and let's build a business that can weather any storm.  

Why not make compliance your ally instead of an adversary on this entrepreneurial journey? 🚀 
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