For startups in regulated industries, getting SOC 2 compliant can open doors to enterprise customers, build trust, and demonstrate that you take security seriously. But it’s also easy to get tripped up. Many early-stage companies fall into common traps during implementation or audit, leading to delays, extra costs, or even deviations on the report.
Here’s a few of the most frequent issues that startups encounter on the road to SOC 2 (with a few HIPAA-related notes where relevant),and how to avoid them.
Lack of Leadership Buy-In
One of the top issues is leadership treating security as a side project. When founders or execs aren’t engaged, things fall through the cracks, policies stall, evidence isn’t collected, and no one pushes the project forward.
Resolution: Assign a project lead, make SOC 2 a visible priority, and involve cross-functional teams (not just engineers). Leadership buy-in is a top signal auditors look for.
Poor Scoping and Unrealistic Timelines
Startups often over- or under-scope their audit. Including unnecessary systems adds complexity; leaving out key infrastructure can cause deviations. Many also underestimate how long the process takes.
Resolution: Run a readiness or gap assessment first. Work with your auditor to define the right scope. Plan for 6–12 months toprepare for your first SOC 2 Type II audit.
Missing or Weak Documentation
You can’t just tell auditors what you do. You need to show it. Common gaps include missing policies, no proof that access reviews or backups occurred, and disorganized evidence.
Resolution: For every control, document both the policy and how it’s implemented. Keep audit evidence (like logs, screenshots, tickets) in a centralized location, and keep it organized.
Not Practicing What You Preach
Startups sometimes adopt polished policy templates but don’t follow them. If your policy says you do quarterly access reviews but haven’t done one in a year, that’s a deviation.
Resolution: Make sure every policy is realistic and enforced. Audit yourself periodically to ensure practices match your written procedures.
Weak Access and Offboarding Controls
Overly broad access, shared logins, and missing MFA are common audit flags. So are stale accounts that were never deactivated when employees or contractors left.
Resolution: Use least-privilege access, enforce MFA, review access quarterly, and build onboarding/offboarding into your HR process with immediate system access changes.
Neglecting Security Awareness Training
Untrained employees are one of your biggest risks, and auditors know it. Missing or undocumented security training is a common issue, especially in small teams.
Resolution: Require annual security training (including HIPAA, if applicable). Track completion and keep evidence. Tools like KnowBe4, Curricula, or even internal slide decks work well for small teams.
No Incident Response Plan (Or Untested One)
Having an incident response plan “on paper” isn’t enough. If it hasn’t been tested or shared with the team, it likely won’t hold up under scrutiny.
Resolution: Create an IR plan that covers detection, response, and communication. Run tabletop exercises and log the results. Similarly, test backup restores and document your disaster recovery process.
Ignoring Vendor and Asset Management
You’re responsible for your vendors. If your cloud provider, analytics tool, or payroll system gets breached, auditors will ask: did you assess their security?
Resolution: Maintain a vendor inventory. Collect SOC 2 reports or send security questionnaires. Also, track your own systems and assets. If you don’t know what you have, you can’t secure it.
Letting Tech Debt Undermine Security
Startups sometimes rely on outdated systems, unpatched libraries, or insecure protocols (like TLS 1.0). These are high-risk findings, especially in regulated industries like healthcare.
Resolution: Keep software current. Implement a patching schedule. If you must use legacy systems, apply compensating controls (like network segmentation or enhanced monitoring).
Treating Compliance as a One-Off Project
SOC 2 isn’t a one-and-done badge. Controls need to operate continuously, and without ongoing attention, they degrade fast.
Resolution: Schedule recurring tasks for key controls (backups, access reviews, vulnerability scans). Embed compliance into your normal ops. Use tooling to automate where possible.
Not Aligning with Other Frameworks
If you're also subject to HIPAA, PCI, or ISO 27001, treating each framework in isolation causes duplication and gaps.
Resolution: Map your controls across frameworks. For example, HIPAA’s risk assessment and workforce training map directly to SOC2 requirements. Use unified policies and a centralized compliance calendar.
Relying on Manual Processes
Spreadsheets and email reminders work for small teams, until they don’t. Manual tracking often leads to missed deadlines, incomplete evidence, and chaos before audits.
Resolution: Automate where you can. Tools like Vanta, Drata, or Secureframe integrate with your systems and collect evidence continuously. Even Trello boards or scheduled Slack reminders are better than ad-hoc spreadsheets.
Final Thoughts
SOC 2 compliance can feel daunting for startups, but with the right preparation, it’s very achievable. Most issues stem from lack of planning, weak documentation, or assuming “we’ll remember todo it later.”
Get leadership involved. Treat security as an ongoing process. Automate where you can. And most of all, don’t wait until your audit is around the corner to get started.
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