Navigating Compliance Checklists: When to engage and when to pass
14 Jul 2023 - Frans Vanhaelewijck
Made by upklyak
Big corporations often require startups to fill in a compliance checklist or a security questionnaire. It’s a step you may want to take, but it’s not always necessary or beneficial. Let’s explore reasons for and against filling in these questionnaires.
Reasons for not filling in questionnaires
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Insufficient Revenue: If the total annual revenue from a deal is too low, it might not justify the effort to fill in the questionnaire. As a rule of thumb, consider a revenue of at least $20K annually before engaging. Of course, if you’re a new startup looking for references, this may differ. However, remember that each deal should be profitable on its own. Corporations understand their extensive requirements justify a higher price tag. Don’t shy away from adjusting your prices according to the customer. There is a reason why the ‘Corporate plan’ on typical pricing pages do not show a price.
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Corporation-averse: Corporations can be high maintenance, and their legal, insurance, support, SLA, and other requirements may be too demanding. If you prefer to avoid such engagements, declining to fill in the questionnaire is an option.
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Existing Documentation: If you have well-documented processes and comprehensive safety, security, compliance documents, these may suffice. After signing the necessary NDAs, sharing these documents could be enough for your prospects, particularly when they understand the price implications of choosing the ‘Corporate’ plan.
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Self-filling Option: Procurement teams sometimes choose to fill in their questionnaires using your documentation, especially if it means they can stay within a lower pricing tier.
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Certifications: Holding certifications like SOC2, HIPAA, ISO27001, or other industry-specific ones may already sufficiently demonstrate your adherence to standards and requirements.
Reasons for Filling in Questionnaires
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Collaborative Approach: Filling in the questionnaire shows respect for the purchasing department’s process at your customer’s end. It acknowledges their work process and eases their tasks.
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Competitive Advantage: Completing the questionnaire can differentiate you from your competitors. It proves that you’re willing to go the extra mile to meet your customer’s needs.
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Promotion Opportunity: The questionnaire provides a platform to elaborate on your product’s advantages and unique features.
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Efficient Team: If you have a competent bidding team that can fill in the questionnaire efficiently, the time and effort invested are less of a concern.
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Internal Processes: The prospect may have internal processes requiring vendors to fill in questionnaires. In regulated industries, supplier checks and audits are often mandatory. In such cases, not complying with their requirements may exclude you from their consideration.
Assistance in Filling Out Questionnaires
Look out for our blog post next week where we’ll dive deeper into this topic. It will provide more insights and guidance on navigating the intricacies of filling in compliance checklists and security questionnaires. Stay tuned!