Startup owners have a lot on their plate, from reaching their target market to ensuring profitability and strategic pricing. However, IT noncompliance, whether it’s failing to meet industry regulations, data security standards, or licensing requirements, can result in hefty fines, legal action, and even business closure—a risk that often goes overlooked. This “compliance blind spot” is a major contributor to startup failure, ranking just behind financial mismanagement.
The global average cost of non-compliance is $14.82 million, a significant amount for startups with limited resources. Early-stage businesses, already grappling with tight budgets, fundraising, and scaling, can be severely impacted by unexpected legal or regulatory costs.
To simplify the path to compliance, we’ve outlined the essential steps to achieve IT compliance.
3 IT Compliance Management Tips to Protect and Grow Your Startup
Tip #1: Implement Minimum Security and Compliance Requirements for Startups in Year One
Much like any other business initiative, it’s easier to achieve solid IT compliance during your first year rather than when your organization starts to grow and branch out. It also makes sure that your business is protected from potential reputational challenges or legal liabilities.
Ultimately, there are six baseline levels of requirements that every startup should meet within their first year:
Centralized Device Management
Startups need a centralized device management solution like JAMF or InTune to apply security policies throughout all company devices. These tools make it possible to use Two-factor Authentication and strong passwords, which in turn reduces vulnerabilities from weak credentials or unmanaged devices.
Domain Name System (DNS) Filtering
According to Statista, employees from small businesses are more likely to click on malicious links. Another major security challenge comes from employees visiting, downloading, and using unapproved collaboration tools, bypassing IT oversight.
A DNS tool controls which website employees can access and prevents access to malicious domains that could cause phishing attacks. Blocking harmful domains helps protect employees from accidental exposure to security threats and strengthens the company’s cybersecurity framework.
Endpoint Detection and Response (EDR) and Managed Detection and Response (MDR)
As business growth occurs, threats also evolve, using advanced techniques like zero-day exploits and fileless malware, which can bypass traditional defenses. EDR solutions are needed to continuously track and analyze endpoint data to identify potential security breaches, as traditional reactive solutions are no longer sufficient. MDR maximizes the use of EDR and extends its capabilities by actively monitoring and responding to threats.
Security Awareness Training
A 2024 study found that 66% of cybersecurity vulnerabilities are caused by everyday workplace habits like clicking on unverified links, reusing passwords, and missing phishing scams. This is a widespread issue, highlighting the need for security awareness training in companies of all sizes.
An easy way to address this is by implementing a security awareness training platform that uses phishing simulations to test employees and track their responses to suspicious emails. Employees who fail these simulations receive targeted training to help them identify real threats.
Application Control and Whitelisting
Employees frequently download and install unapproved software for convenience or productivity, which can introduce system vulnerabilities and malware. To mitigate this, startups can use tools like ThreatLocker to implement application whitelisting, blocking all unauthorized software and requiring formal approval for any new software installations. This process reduces the risk of malware and unauthorized applications on company devices.
Security Operations Center Team
It’s always been our strong belief that while technology is essential, it is only one aspect of a larger security strategy. The other key aspect is the human element, aka experts who analyze threats, make real-time decisions, and take action when needed.
A Security Operations Center team actively monitors, investigates, and responds to security incidents. If a startup lacks an internal security team, outsourcing to IT partners helps cover this critical function.
Tip #2: Practice Proactive Compliance to Save Money in the Long Run
Compliance management is both a financial and regulatory decision. Early compliance implementation is more cost-effective, while urgent compliance often incurs higher expenses due to rapid implementation’s increased resource and effort requirements.
While any environment can be adjusted to meet compliance standards, the level of effort, and the associated cost depends on how long non-compliant systems have been in place. Addressing compliance early, especially before major changes like implementing a new platform, allows businesses to plan, reduce effort, and minimize costs.
Tip #3: Monitor and Manage Your Compliance as You Grow
As a business grows from 5 to 50 or 500 employees, compliance requirements start to shift. The rules you need to follow depend on your industry, Cybersecurity Maturity Model Certification (CMMC) for defense contractors, Health Insurance Portability and Accountability Act (HIPAA) for healthcare, and so on.
Compliance can get more complex as your business grows, but it doesn’t have to pull focus from long-term plans. A Managed Service Provider (MSP) can help you manage your compliance, breaking it down into these steps:
- Evaluating your current setup
- Identifying security and compliance gaps
- Mapping out a plan according to your compliance requirements and industry
“At some point, most businesses will need to meet compliance requirements, either to continue operating or achieve new business milestones. For instance, without compliance, they may be unable to work with certain clients. An MSP fits into this by conducting a gap assessment, identifying the differences between a company’s current environment and its target compliance state, and helping them meet the necessary standards.”
– Ryan Sutton, President and CEO, Kinetix
How Can an MSP Support Your Business in Managing Compliance Obligations?
Compliance Gap Assessment
The first step to understanding a startup’s compliance requirements will always be a comprehensive assessment. Assessing the current state of a company’s compliance using advanced software allows the team to identify where the business currently stands versus where it needs to be.
It’s always important to work closely with your MSP partner during this phase to build a compliance roadmap that aligns with your industry standards.
Implementing Compliance Solutions
Once the compliance requirements are clear, the MSP will implement solutions according to immediate and long-term IT compliance requirements. This usually means adjusting access controls, which can change how the business manages and protects its data.
The process might also involve bringing in new security tools, like Single Sign-On or Multi-Factor Authentication, to improve data security.
IT Compliance Made Clear: Understanding the Timeline
A realistic timeline for a startup to get compliant usually falls between six months to a year. How long it will take for your company to become compliant will depend on the industry, the specific regulations, and the startup’s setup. Some factors that can speed up or slow down the process include the company’s budget and the time it can dedicate to the work. If the client can commit more resources, things can move faster. If not, it might take longer to work through all the steps.
“Any environment can be made compliant, but the effort required depends on its current state. A system in place for a decade with significant misconfigurations will take far more work, and come at a higher cost, than one addressed early. Ideally, compliance should be considered before major organizational changes. Assessing compliance before adopting a new platform, for instance, allows necessary adjustments to be built into the implementation. It also reduces cost and effort.”
– Ryan Sutton, President and CEO, Kinetix
Partner with a Trusted Cybersecurity Service Provider to Simplify Compliance Journey
Compliance is crucial for a secure, successful business. Addressing it early mitigates risks and saves money long-term.
Partnering with an MSP streamlines the process, providing expertise, tools, and support as you scale. At Kinetix, we tailor security and compliance solutions to your needs, ensuring consistency so your team can focus on growth while we handle compliance.
Partner with Kinetix today to enhance your IT security and build a program to fast-track your path toward IT compliance!
