The Importance of Cybersecurity For Small Businesses
Protecting companies and customers in the modern world all comes down to cybersecurity–learn what small businesses need to know.
From accepting payments to building customer profiles, most small businesses rely on digital tools to operate. We use them to allow purchases, to help customers better interact with our brand, and even to keep customers engaged when we operate online.
We know this–and cyber criminals do too. In this article, we will explore why cybersecurity is so important for small businesses and what steps businesses can take to keep cyberattacks away!
Small Businesses and Cybersecurity: A Guide
In the news, it is all too easy to see how cybersecurity risks impact large businesses. However, many small business owners think of cyberattacks as a large business problem when that really isn’t true. Just like their larger counterparts, small businesses need to prioritize cybersecurity to protect themselves and their prized customers in today’s digital climate.
What is Cybersecurity?
Small businesses and their customers live in a digital world, with most small businesses relying on digital tools to connect and interact with their customers. Since much of the modern world is entirely built around these digital tools, protecting them is critical.
This is where cybersecurity comes in.
Cybersecurity is the act of protecting your digital tools, data, and networks from leaks and attacks. Whether that means preventing hackers from accessing your data or keeping your systems online, cybersecurity plays an essential role in keeping small businesses and their customers safe and secure using best practices and protective tools.
Why is Cybersecurity Important?
A decade ago, cyberattacks still seemed like science fiction, but in the modern world, they are a daily occurrence that impacts businesses of all sizes. No business is too big or too small to be a victim of a cyberattack–and that means you need to take active steps to keep your business safe.
Cybersecurity practices can keep your business operational, protect customer data, and allow your business to grow with a glowing reputation.
How Does Cybersecurity Impact Small Businesses and Their Customers?
It doesn’t matter if you’re selling custom t-shirts or consultation services–small businesses in every industry are at risk of cyberattacks. When businesses are at risk, they are not alone. Every business risk places its customers and investors at risk too.
These are some of the ways that cybersecurity impacts small businesses and their customers:
- Keeping customer data private
- Preventing stolen customer data
- Protecting trade secrets
- Maintaining a good reputation
- Preventing cyberattacks that might negatively impact business operations
- Keeping employee and customer trust levels high
- Ensuring investors do not lose their investment
- Maintaining an edge on the competition
The Risks Small Businesses Face When They Don’t Prioritize Cybersecurity
Small businesses face many challenges as they grow and evolve throughout the years, and there is no denying that that there are plenty of risks. Cybersecurity risks are becoming more relevant than ever in today’s world, with more criminals turning to cyber crimes.
These are some of the more common risks that businesses face when they do not prioritize cybersecurity.
1. Financial Loss
No business wants to lose money, but lapses in cybersecurity can absolutely lead to financial loss. When small businesses do not employ appropriate cybersecurity measures, they are more likely to lose money. This happens in several ways, including legal fines, expensive lawsuits, and even downtime or lost sales. Even worse, the financial loss tends to continue over time. Even if the problem is fixed, long-term sales impacts are still a possibility with today’s more vocal customers.
2. Reputation Damage
The ongoing loss associated with cybersecurity comes down to one thing–reputation damage. When small businesses show that they are not in control of their cybersecurity, they make themselves appear risky to potential customers and investors. No one wants to partner with a company that may place them at risk, and small businesses can be particularly at risk when it comes to this kind of reputation loss. Rebuilding trust and gaining back lost customers can take time and money, making it a significant area of concern for small businesses.
3. Loss of Competitive Standing
Every time a business is called out for doing something wrong, its competitors always look better. Public cybersecurity challenges may convince your customers and investors to migrate to a competitor instead simply because they offer the same products or services and are now perceived as more reliable.
Even if your competitor does not have perfect practices, customers may still choose them if that information is not public. More competitive small business owners are likely to turn a competitor’s loss into an opportunity, using the lessons learned to improve their own standing and appeal more to customers.
4. Regulatory Risks
Businesses are legally required to meet certain standards and requirements while operating, and cybersecurity risks are included. Even though a hacker may have stolen your data, you may be responsible for their being able to do so–and this can have negative legal repercussions for your business. If your practices are not in alignment with what is required, you can face several negative outcomes with the government. It is always best to know your regulatory requirements and to adhere to best practices when it comes to cybersecurity.
5. Employee Turnover Rates
Losing money, standing, and customers is a challenge–but that may just be the start. Employees may see your company’s sudden loss of reputation as a risk to their own professional standing, and this can cause them to leave to protect themselves. A significant error with cybersecurity can convince employees to seek employment with more secure employers, especially if the financial losses contribute to layoffs.
How Small Businesses Can Implement Cybersecurity Best Practices
Even a brand-new business can take active steps to implement cybersecurity best practices on day one. Whether you just made your first twenty sales or you have happy customers around the globe, these are some of the cybersecurity best practices you can implement for your business today.
1. Know Common Best Practices
To begin improving cybersecurity efforts for your company, it is always best to start with highly general best practices. Simple best practices can help you to prove that you are committed to protecting your business, your employees, and your customers.
Common Best Practices Include:
- Maintaining a secure network
- Limiting access to private information
- Using modern technology to protect customer data
- Tracking interactions in your systems for audit purposes
- Scanning paper documents and keeping them in secure digital locations
- Preventing the use of USB drives on business devices
- Maintaining adequate antivirus and firewall systems
- Collecting the bare minimum amount of customer data
2. Learn From Past Mistakes
Operating a small business is a constant learning challenge, and every time a small business owner learns something new, they must make changes based on this information. In the event that you have had any challenges with cybersecurity, it is important to learn from past mistakes in order to improve your practices over time. Continuously look for areas of improvement and ask yourself how you and your team can do better.
3. Learn From the Mistakes of Others
Learning from our mistakes is important, but it can be even more helpful to learn from the mistakes of other companies. Take time to educate yourself on mistakes that other small businesses have made when it comes to cybersecurity, and adapt your own practices to avoid these pitfalls. Striving to learn from the mistakes someone else has made can help you to spare your business without having to learn on your own!
4. Stay Up-to-Date on the News
New cyberattacks and cybersecurity risks are being demonstrated in the news daily. This makes the news an excellent source of information that you can learn from to improve your business and practices. Look up cybersecurity news to see what risks are out there and what businesses are doing to adapt to these risks as they arise.
5. Partner With Professionals
Chances are that you are not an expert in cybersecurity yourself, and that can place you and your business at risk. To gain the best protections and to make sure that your business follows along with best practices, it can be really beneficial to partner with cybersecurity experts who know exactly what your business needs to do in order to stay safe. Having a trusted cybersecurity partner is an exceptional way to make sure that your business, your employees, and your customers are safe and secure!
Protect Your Small Business, Your Customers, and Your Future–Prioritize Cybersecurity Today!
Security is what companies want and customers need–and good cybersecurity practices can help. To bring better cybersecurity practices to your business, it helps to work with experts. We offer managed IT services Washington, DC business owners benefit from every single day, and good cybersecurity practices are at the center of all that we do.
Connect with our team to learn how we can help you stay secure!
