New regulations from the government have evolved the way organizations conduct their operations and drive their strategy. It is not uncommon for organizations to categorize compliance regulations as a chore rather than perceiving them as an opportunity for growth. It is certainly not one of the most prioritized things to do since, in a rush to demonstrate product/market fit, scale, and fulfill industry expectations, compliance seems to be a complex, expensive, and ostensibly unimportant hurdle.
Many founders overlook the importance of compliance, especially in emerging markets for startups. Not only does compliance enable organizations to close bigger and better deals by providing security, but it also serves as a crucial barrier against company-ending events. It also helps build credibility among organizations to do business with each other. This article will give you a detailed insight into how compliance works in favor of growth.
Unlocking Sales With Compliance
Once you've established an organization, there are certain possibilities that your organization will move to better markets where you will be exposed to bigger deals. This directly influences your organization as it will require you to make sales and close business deals with more prominent companies.
However, when companies frequently begin sales interactions with this new type of consumer, they run into a wall. They are severely unprepared to satisfy corporate demands due to a lack of data protection and privacy. Even though large enterprises are interested in working with startups that bring innovation to the table, they are not looking to hand-hold them to improve their security practices.
This is where compliance comes in. Let's take a scenario where your business determines it is ready to go beyond serving SMB clients, and you start sales talks regarding the same with large firms. The firm is eager to deal with you and likes your product, but they can't do business with you until you answer their 100-question security questionnaire. To fill it out, you need to have a compliance program in place.
As a founder, you must anticipate this challenge when focusing on expanding to bigger firms. You must already have the necessary compliance servers before you miss out on opportunities.
Compliance And Security Act As An Advantage For Startups
Now that we've concluded that anticipating compliance is necessary for founders when interacting with bigger market firms, let us also see why that is the case. After all, the question still remains: How is compliance an advantage for the growth of organizations?
Stand apart from the competition
By implementing a compliance program, you're informing prospects that you not only have all of your competitor's innovative products/services and agility, but you also ensure their data is handled in line with legal regulations.
Credibility Is Signified Via Security
Another way a startup can demonstrate its commitment to bigger enterprises is by seeking an internally centered security program. Consumers are typically more aware of the need for robust security processes and anticipate a greater level of internal controls since data breaches and privacy issues dominate headlines daily. Quality security protocols indicate that your startup is more established, reputable, and customer-focused.
Using Compliance To Protect Finances And Reputation
Compliance safeguards your startup against catastrophic financial and reputational damages. It guarantees that your business is founded on solid processes that will stay robust and secure as your team develops, your product gets more complicated, and you take on larger clientele. Without it, you risk losing everything for yourself, your business, and your clients.
How Is A Reactive Approach To Compliance Harming Businesses?
Applying for compliance when the clock strikes is a reactive approach that blocks enterprise sales and sends teams across an organization scrambling to find an instant solution. Unfortunately, compliance requires time. It's not something you can complete in the heat of the moment, nor can you expect a prospective business customer to wait until you're done. Founders may conduct an audit in three or four weeks with good planning and the assistance of a compliance tool like Laika. However, if you are working alone, under pressure from stagnant sales, and unclear about how to proceed, the process can take up to 18-20 months at the most.
Enterprises undoubtedly take a risk when they decide to engage with startups, especially those startups that don't have credible tools to maneuver the size and scope of security issues in larger companies. To limit some of that risk, they include security evaluations and contract discussions, which can take up months of your time or even more. Throughout the purchasing process, they focus on compliance and security concerns. If you aren't already prepared, you risk agreeing to conditions that aren't optimal for your business or losing the chance completely.
By investing in compliance before engaging with corporate clients, you not only position your company to satisfy enterprise requirements but also enable your sales staff to perform what they do best. The quicker you go through security, the more time you have to focus on selling.
Overall, through this article, we have comprehended how compliance serves to unblock sales while providing risk mitigation simultaneously. The benefits of using a proactive approach towards compliance are plenty, like financial and reputational benefits, along with the ability to move up in the market.
Scrut Automation is a smart and radically simple Governance, Risk, and Compliance automation platform for growing startups and mid-market enterprises. With Scrut, Compliance teams can reduce ~70% of their manual effort in continuously maintaining compliance towards SOC 2, ISO 27001, GDPR, PCI DSS, and privacy laws like HIPAA, GDPR, and CCPA. Schedule your demo today to see how it works.