Will SOC 2 Help My Small Business Close More Deals?

Stop me if you’ve heard this one before. 

You’ve been chasing a lucrative deal for months, investing countless hours in demos, meetings, and follow-ups. Finally, you're sitting across from the decision-makers, and everything seems aligned. The budget is in place, the product fits perfectly with their needs, and they’re ready to sign.  

But just before you can celebrate, they hit you with one final request: “Can you provide your SOC 2 audit report?” 

Your heart sinks.  
You don’t have SOC 2 compliance yet.  
The client insists it’s a non-negotiable requirement for their vendors.  
They give you some leeway to get it done, but here’s the harsh reality—even if you start today, you’re looking at six to seven months before you can hand over that SOC 2 report! By then, the deal could be cold, or worse, lost to  another vendor who already has their compliance ducks in a row.  

It’s a tough pill to swallow, but this scenario is all too common for startups and small businesses. So, how can you avoid this pitfall and close more deals by achieving SOC 2 compliance? Let’s break it down. 

• Why SOC 2 Matters for Closing Deals 

• The SOC 2 Timeline for Startups 

• How to get Started with SOC 2 Compliance as a Startup 

Why SOC 2 Matters for Closing Deals 

SOC 2 compliance is a framework designed to ensure that your small business meets the necessary standards for security, availability, processing integrity, confidentiality, and privacy. When companies—especially those in industries like healthcare, finance, or tech—look to partner with a vendor, they want to ensure that their data will be protected.  

For potential clients, SOC 2 compliance is more than just a box to check; it’s a way to minimize risk. A small business without SOC 2 compliance represents a higher liability, making it harder for them to justify choosing your service, even if everything else about the deal looks great.  

In fact, according to a study by Deloitte, 92% of executives say that SOC 2 compliance is critical when choosing a vendor. 
 
For many startups, embracing managed compliance solutions or compliance as a service (CaaS) providers for small business is the easiest way they can ensure they meet the necessary standards without burdening internal teams. 

The SOC 2 Timeline for Startups 

Once you realize you need SOC 2 compliance, time becomes your biggest challenge. The minimum audit period is three months of data collection and operational effectiveness testing. Before that, though, you have to prepare by setting up the necessary controls. Depending on your current security posture, this setup phase can add weeks, or even months, to the timeline.  

After the three-month audit period, it may take up to two extra months for the auditor to compile and issue the final report. So, in total, you’re looking at around 6 to 7 months from the day your small business decides to pursue SOC 2 compliance to the day you have that crucial audit report in hand.  

For most startups and small businesses, that’s too long to leave a deal on the table. 

The key takeaway here is simple: start as soon as you can. SOC 2 compliance isn’t something you can rush (though there are ways to streamline it which we will mention later). 

Many small businesses wait until they’re on the verge of closing a deal to realize they need it, and by then, they’re scrambling to get compliant, often losing deals in the process. 

Starting early ensures that when the big deal comes knocking, you’ll be ready to present your SOC 2 audit report without hesitation. It also means you’ll avoid the stress of rushing through the process, which could lead to costly mistakes or compliance gaps. 

For a startup it’s important to identify the fastest way to get compliant, and luckily there are tools to help! Leveraging solutions like compliance automation software for small businesses get you compliant fast without sacrificing accuracy or security. Because the software automatically gathers and organizes your data, you save up a lot of time that would be spent on manually reviewing and figuring out how to provide evidence for each of the controls being tested.  

How to Get Started with SOC 2 Compliance as a Startup 

So, where do you start? Here’s a quick roadmap to help you begin the journey: 

1. Assess Your Current Security Measures: Before anything, understand where your small business stands. Perform a gap analysis to identify where your current practices fall short of SOC 2 requirements. This will help you create a clear action plan.
   
   
2. Set Up the Right Controls: SOC 2 compliance requires a set of internal controls covering everything from data encryption to access management.
   
   Work with experts or compliance software providers like Drata to help streamline this process and get on track with all major frameworks like SOC 2, ISO 27001, NIST 800, HIPAA and CMMC.
   
   
3. Prepare for the Audit: Once your controls are in place, you’ll need to operate under these controls for at least three months. During this time, keep detailed records and ensure everything is documented properly. Auditors will be looking for evidence of consistent compliance.
   
   
4. Choose a Reputable Auditor: SOC 2 audits need to be conducted by a certified CPA firm. Take your time to find a reputable auditor who understands your business, your industry and can provide clear guidance throughout the process.
   
   
5. Keep Compliance Ongoing: Achieving SOC 2 compliance is only the beginning. You’ll need to continuously maintain and improve your security posture to ensure ongoing compliance for future audits. Compliance is a lifestyle, embrace it!

When you achieve SOC 2 compliance, you’re not just checking off a box; you’re gaining a competitive edge. In industries where data security is paramount, being able to present your SOC 2 report during negotiations can be the difference between winning and losing a deal.  

Proactively obtain SOC 2 compliance: demonstrate to potential clients that you take data protection seriously, build trust more quickly, shorten the sales cycle and give yourself a clear advantage over competitors who aren’t yet compliant, to close that deal with confidence.