Forming a company in 2026 means handling data responsibly from day one. Privacy by design is no longer optional; it is foundational. Bake data governance into bylaws and internal policies. Treat customer and employee data as strategic assets with rules. Start with a data inventory and purpose mapping. Identify what you collect, why, and where it flows. Set retention schedules in your policy pack. Shorter retention reduces risk and cost. Appoint a data lead early, even if fractional. Give them authority to enforce access controls and vendor due diligence. Contract templates should include standard DPAs and breach clauses. Vendors must meet your minimum security bar. Embed privacy reviews into product development. New features pass a checklist before launch. Document decisions and mitigations for audit trails. This habit pays off during enterprise sales. Customers reward companies that respect data. Clear notices, easy preferences, and timely responses build trust. When privacy is part of your brand, sales cycles shorten. Good governance becomes a competitive edge.