As information security becomes an increasing priority for consumers and business alike, compliance has become a gateway to business growth. Last year, 29% of companies lost business because they didn't have a compliance certification, and 72% of businesses completed a compliance audit specifically to close a deal.

Yet achieving compliance remains a significant challenge for startups and SMBs, leaving many businesses vulnerable to missed opportunities and costly cyber threats. Compliance automation paired with a Managed Security Service Provider (MSSP) changes the equation, making compliance significantly faster, easier, and more cost-effective.

We surveyed more than 160 small businesses to measure the financial impact of a compliance management solution, gathering data on cost savings, efficiency gains, and total ROI. Below, we dive into the biggest challenges facing SMBs, uncover the benefits of outsourcing compliance to automation and IT service providers, and measure the economic impact of outsourced compliance solutions.

Why growing companies struggle with compliance

Startups and small businesses often find themselves overwhelmed when building their security and compliance programs. For many, the decision to outsource these functions is driven by a mix of necessity and opportunity. Our survey uncovers the main challenges facing SMBs and the key reasons these companies turn to outsourced compliance services.

1. Strict customer demands

Over half (55%) of surveyed businesses reported implementing a compliance automation platform to achieve compliance due to a specific client request.

For startups and SMBs, customer trust is a critical factor for growth, especially as customers demand proof of a strong data security posture. Enterprise clients in particular expect compliance with industry standards like SOC 2, ISO 27001, or NIST CSF as a prerequisite for doing business. 

Without the ability to demonstrate compliance, small businesses risk losing valuable revenue opportunities. Yet they often lack the resources to achieve compliance on their own, especially on aggressive timelines. MSSPs can help these companies understand which frameworks and standards apply to their business and support their strategic objectives, while automating compliance allows them to meet these demands quickly and efficiently.

This was the issue facing Abmatic AI. As they finished developing their product and began engaging with potential customers, CEO and co-founder Jimit Mehta discovered that SOC 2 compliance was a pressing issue. “As we started speaking with customers, the question about security kept popping up and some specifically asked about SOC 2. So we knew that before getting customers, we needed to have SOC 2 compliance,” Mehta explains.

Faced with implementing hundreds of SOC 2 controls, Abmatic AI turned to an automation platform to streamline the process. Using Secureframe’s integrations, automated evidence collection, and trusted audit partner, the company was able to get their SOC 2 report in just six days — a process that typically takes months.

Champion HQ encountered a similar challenge. Courtney Crispin, CTO and Co-founder, shared: “We started thinking about cybersecurity before we officially started. In early conversations, we were getting a lot of questions about security.” Many prospective customers required assurance that their vendors maintained robust security measures, and ISO 27001 certification became a crucial step in establishing the trust and credibility needed to scale Champion HQ’s business.

Faced with the rigorous requirements of ISO 27001 certification, Champion HQ partnered with Trava Security to streamline and accelerate the process. Leveraging Trava’s expertise and tailored guidance enabled Champion HQ to achieve certification faster than anticipated, solidifying their reputation as a security-forward vendor and unlocking new business opportunities in regulated markets.

2. Limited internal resources

Nearly half (47%) of small businesses in our survey said they had no dedicated compliance role before adopting automation, with an additional 33% sharing compliance responsibilities across multiple roles.

In these cases, compliance often falls to a COO, CTO, or Head of Engineering — roles already stretched thin with other priorities. Cobbled together processes are time-consuming, stressful, and prone to errors, resulting in a higher likelihood of compliance issues, delays, and even failed audits.

Together, an MSSP paired with compliance automation can provide both expertise and efficiency, lifting the burden from startups and SMBs. MSSPs can provide strategic direction and expert guidance, while an automation platform can help assess your compliance status, identify gaps in your controls, monitor progress towards audit readiness, and automate manual audit preparation tasks like evidence collection.

3. Complexity of compliance requirements

Navigating the intricacies of security frameworks and regulatory compliance was identified as the biggest challenge by 33% of small businesses in our survey.

Compliance standards are dense, with nuanced requirements that differ across industries and geographies. For SMBs without prior experience, interpreting and implementing these frameworks can be overwhelming, but hiring a full-time Chief Information Security Officer or in-house compliance team may not be feasible. 

MSSPs can simplify this complexity with tailored solutions and expert guidance, ensuring compliance without unnecessary stress. A vCISO or outsourced chief compliance officer offers high ROI, providing strategic cybersecurity leadership on a flexible, cost-effective basis. These compliance professionals can develop and implement comprehensive security and risk management strategies, tailoring policies and controls to the specific needs of their SMB clients.

Automation platforms can further clarify compliance requirements by integrating with an SMB’s existing tech stack, automatically mapping existing controls to specific framework requirements, and identifying any gaps in the company’s compliance posture. The result is real-time visibility into the company’s current compliance status and a clear roadmap to audit readiness. 

4. Manual workload

The manual work associated with preparing for audits and maintaining compliance was cited as the top challenge by 32% of small businesses.

Manual processes are repetitive and time-consuming, detracting from core business activities. By automating evidence collection, policy management, and other repetitive tasks, businesses can reclaim valuable time while ensuring accuracy and consistency.

Secureframe users save an average of five hours per week by automating manual compliance tasks. Over the course of a year, this equates to more than 250 hours — time that can be redirected to high-impact activities like product development and customer acquisition. MSSPs can similarly reduce this burden by conducting efficient gap analyses and building a prioritized, strategic analysis for building out your security and compliance programs. 

MSSPs can similarly reduce this burden by conducting efficient gap analyses and building a prioritized, strategic analysis for building out your security and compliance programs. Together, automation and AI paired with expert guidance can unlock significant time savings. Secureframe and Trava clients have saved hundreds of hours of work and achieved audit readiness up to 75% faster.

5. Low confidence in maintaining compliance

A striking 86% of SMBs expressed low confidence in their ability to maintain compliance without automation.

Compliance doesn’t end with a single audit. Most frameworks require periodic assessments to maintain certification. Plus, keeping up with framework updates and regulatory changes poses a significant challenge, with 76% of compliance managers manually scanning regulatory websites to track changes. Without the right tools and processes, businesses find themselves scrambling to resolve non-compliance issues before an audit.

Automated compliance solutions shift compliance from a reactive, resource-intensive effort to an ongoing, proactive process. Continuous monitoring allows for real-time detection of failing controls, while tailored remediation guidance helps businesses address vulnerabilities quickly and efficiently. As Trava Security CEO Jim Goldman explains, “You don’t want to be compliant just once a year at audit time. You want to be compliant all year long. That’s what the platform does for you, because it’s got that built-in project management that says, ‘Hey, it’s time to do your quarterly access reviews.’”

Platforms like Secureframe also stay updated with evolving frameworks and regulatory changes, removing the burden of manual tracking. Paired with the expert guidance of an MSSP, SMBs can stay audit-ready while focusing their time and resources on other growth initiatives.

Measuring the ROI of outsourced compliance services

Our survey uncovered the impact of compliance automation across various aspects of growing businesses, from operational efficiency to cost savings and stronger customer relationships. Let’s examine the payoff by the numbers.

Time savings

Time is a precious resource for any business, and the combination of compliance automation and MSSP services delivers substantial time savings. Businesses leveraging our automation solution report completing compliance tasks 40% faster on average. For startups and SMBs, this acceleration translates into reduced time-to-market and more bandwidth to focus on growth.

In addition to faster task completion, 81% of small businesses were able to prepare for and complete audits at least 25% faster. 32% prepared for and completed an audit in less than half the time. This efficiency is particularly critical for startups aiming to secure funding or meet client demands on tight deadlines.

Cost savings

Compliance automation and MSSP services provide measurable cost savings by streamlining operations and reducing the need for dedicated in-house resources. According to our survey, 70% of SMBs reduced compliance costs by at least 25% after adopting Secureframe’s automation platform, with most businesses reporting cost reductions in the range of 25-50%.

Plus, 29% of respondents say they enhanced operational efficiency, leading to further cost reductions. By automating repetitive tasks and leveraging MSSP expertise, businesses can allocate their budgets more strategically, investing in areas that drive growth and innovation.

Revenue growth

A strong compliance posture builds trust with clients and opens doors to new opportunities. According to our survey, 33% of businesses moved upmarket or attracted enterprise clients by achieving compliance. A further 26% of businesses reported faster sales cycles and closed more deals due to their compliance posture. 

Compliance automation accelerates the vendor procurement process by providing easily accessible evidence of a strong security posture, reducing friction in sales cycles and enabling businesses to close deals faster. Public Trust Centers allow prospects and customers to view security certifications and metrics, as well as request secure access to compliance reports and other documents. Customers are more likely to trust and partner with companies that can confidently and transparently demonstrate compliance with recognized frameworks.

Redirecting resources to core business initiatives

One of the most significant benefits of automation and MSSP support is the ability to reallocate resources to strategic priorities. Our survey revealed that 66% of Secureframe customers were able to spend more time developing new products and services, while 47% improved customer engagement and support — essential activities for driving growth and differentiating within crowded markets.

With Secureframe, an additional 25% of businesses increased sales activities, and 13% expanded their marketing efforts. 

Similarly, Adam Arellano, CISO at Binti, leveraged Trava’s solutions to help expand their mission without adding strain to their team or budget. “With Trava, our security engineer spends less time on compliance tasks and more on initiatives that facilitate more placements for children and families,” Adam shared.

Strengthening customer trust and retention

A strong compliance program not only enhances security, it also builds confidence among customers, partners, and prospects. According to our survey, 70% of businesses improved their overall security posture after adopting our automation platform.

In addition, 71% of businesses gained better visibility into their compliance status. This visibility enables faster vulnerability remediation and lowers compliance risk, while improving transparency and trust with clients and stakeholders. 56% of businesses in our survey reported strengthening customer trust, leading to higher retention rates and long-term loyalty.

Fueling the bottom line: ROI in under 6 months

The combination of automation and MSSP services delivers rapid and measurable ROI. On average, Secureframe customers achieve a full return on investment in less than six months. This quick turnaround is driven by time and cost savings, faster audits, and new revenue opportunities.

For Bento, the benefits of a compliance management tool were immediate. Before adopting automation, CTO Deepak Kumar spent 20-40% of his time managing compliance in spreadsheets. After implementing Secureframe, he saved hundreds of hours annually, allowing him to focus on core business growth.