SOC 2 Clinic #3

Hey there! This issue is packed with goodies, including a high-level roadmap for health-tech startups and practical tips you won’t want to miss. Got questions? Send them my way—let’s dive in!

Q: We are a small health-tech SaaS (2 full time employees). Is it realistic to have SOC2 for us? Should we start with SOC 2 Type 1 or Type 2 audit?

A: Absolutely, achieving SOC 2 compliance is entirely realistic for a small health-tech SaaS like yours. I get it—it can seem overwhelming and complex at first. But don’t worry, let’s simplify it step by step:

SOC 2 Type 1 or Type 2

Start with SOC 2 Type 1

For a small team, starting with SOC 2 Type 1 is usually the most practical choice. Here’s why:

• Type 1 focuses on design: It evaluates whether your controls are in place at a specific point in time. This is ideal for early-stage companies because it’s faster, less expensive, and doesn’t require months of data to show operational effectiveness.

• Quick wins for client trust: A Type 1 report can help you demonstrate your commitment to security and win early deals while you build up the maturity for Type 2.

SOC 2 Type 2 Can Come Later

• Type 2 is about operational effectiveness: It evaluates how well your controls work over a period of time (usually 3-12 months). This is more demanding in terms of time, resources, and documentation.

• Plan for Type 2 once you’ve implemented and consistently operated your controls for a few months. Many small SaaS companies start with Type 1 and transition to Type 2 as they grow.

How to Get Started?

Here’s your high level roadmap:

1. Define Your Scope

• Start with the Security (CC) Trust Services Criteria, as it’s mandatory for SOC 2. Given that you’re in health-tech, you may also need Confidentiality (C) if you handle sensitive patient data. You can take a look at my free checklist to see exactly what are the criterion for each TSC.

2. Implement Key Controls

• Focus on these foundational controls first:

  • Access control: Use role-based access (RBAC) and two-factor authentication for all systems.

  • Backup & disaster recovery: Implement automated backups and test them regularly.

  • Incident response: Have a clear, actionable incident response plan.

  • Risk assessment: Document potential risks and mitigation steps.

3. Leverage Tools for Efficiency

• With a small team, you can’t afford to waste time. Use tools like my AI-powered SOC 2 Readiness Assessment to quickly identify gaps in your compliance and create a focused remediation plan. It will save you days and weeks of manual effort.

4. Outsource Smartly

• Consider hiring a consultant or leveraging tailored tools like a policy package to fast-track your preparation. This approach gives you the expertise you need without the hefty price tag of a full-time hire. Average time-saving 200+ hours.

5. Budget for the Audit

• A Type 1 audit typically costs $3k-$10k. Keep this in mind as you plan your compliance journey. The real cost for a small SaaS often lies in preparing policies and implementing controls—not the audit itself.

Q: Can a small startup like ours automate SOC 2 compliance effectively?

A: Automating SOC 2 compliance can be a big help, but it’s not a silver bullet. Tools like Drata, Vanta, or Secureframe can streamline documentation, access checks, and audits, but they come with a hefty price tag—often $10k per year just for the platform (not including the audit or extra consultancy). Plus, many startups still feel overwhelmed by the flood of notifications and updates these platforms generate.

The truth? Tools alone aren’t enough, and hiring a human expert is often much more cost-effective. You’ll still need someone to interpret requirements, implement security measures, and create tailored policy documents. For small teams, partnering with a part-time security officer or consultant can make the process smoother and allow you to focus on your core business. The right guidance can help you avoid burnout and stay on track. If you’d like advice, just hit reply—I’m here to help!

Q: What’s the (true) cost of a SOC 2 Type 2 audit for a small SaaS (few employees)?

A: Recently, I’ve seen SOC 2 Type 2 audits for small SaaS companies typically cost between $5k-$10k for the attestation alone. This doesn’t include consultation or prep work. If you work with a consultant (like me) who acts as an extension of your team and specializes in SaaS, the prep work can be done conveniently for around $3k-$5k over 3 months.

Your team should also plan for ~40 hours of implementation work, including setting up multi-factor authentication, disaster recovery, backups, and other requirements.

To sum it up: you can achieve a SOC 2 Type 2 report for as little as ~$8k-$15k, plus some dev resources from your team to implement the necessary controls. Sounds pretty achievable, right?

What can SOC2 Clinic do for your business?

As a business owner considering SOC 2 compliance, you must have a thousand questions about the process. Am I right? Join a SOC 2 Clinic, where I’ll equip you with the tools to ace your SOC 2 certification and guide you through the process. No question is out of bounds. Fire away!

• Want to know how to implement and manage SOC 2 controls effectively?

• Need advice on SOC 2 documentation?

• Curious about how to meet the requirements of the SOC 2 standard?

• Wondering if your business really needs SOC 2 compliance?

• Looking for the fastest, easiest path to SOC 2 certification?

• Want the lowdown on my SOC 2 Toolkit?

• Wish you could achieve SOC 2 compliance without the heavy lifting? (This one’s worth its weight in gold!)

Let’s make SOC 2 compliance straightforward and stress-free!

Just hit reply and send over your questions—I’m here to help, so take advantage of it and let’s get you on the fast track to compliance!

You can find the previous issue here: