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How Many Small Businesses Invest in Disaster Recovery Plans?

If you are running a small business, the last thing you want to have is a data breach. Big corporations are often able to recover from cybercrime, but this is not the case with the majority of smaller companies.

The latest small business statistics show that 45% of SMBs only invest in CRM when it comes to software. In other words, these companies do not invest in data recovery plans at all!

Why is this approach dangerous and risky? Let's take a closer look at the position of small businesses in the digital world.

How Many Cyber Attacks Target Small Businesses?

Often, business owners make the classic mistake of thinking that small companies are not an attractive target for cybercriminals.

However, data loss statistics reveal that this type of thinking is misleading. And dangerous, as well.

For instance, the stats show that as many as 43% of cyberattacks in the US target small businesses. Experts also claim that startups might be the favorite target of digital villains.

The reason for this is easy to see-not enough investments in data recovery strategies.

So, what type of consequences can data breach have on small businesses?

Adverse Effects of Data Loss

If your SMB is not well-equipped to deal with the consequences of a data breach, there is a chance that the company will not survive for long.

Yet, as much as 87% of executives believe that their business will not be attacked. Nevertheless, data breaches happen more often than you might think.

As a result, they have the following consequences:

·         Loss of revenue

No matter if it is a malware or a ransomware attack, your profits will take a hit. In other words, the ROI will reduce, which could trigger a dangerous chain of events.

·         Attorney fees

In most cases, you will have to consult with a lawyer about the consequences of a data breach. So, prepare yourself mentally for writing a big, fat check to your favorite attorney.

·         Fines and penalties

Depending on the state, you may have to face penalties in case of a data breach. Of course, things could get even worse if you did not comply with the regulations in the first place.

·         Customer distrust

Last but not least, compromised data will affect your relationship with the clients. According to small business statistics, 90% of owners value the emotional connection between them and the consumers more than anything else. So, if the clients lose trust in your services, the adverse effects of a data breach could last for a long time.

Why Should You Invest in Data Recovery Plans?

As you can see, the consequences of a data breach can cripple your business. What's more, plenty of companies fail to recover after their cyber defenses go down.

For that reason, it is essential to be proactive and prevent cybercrime from happening. In a way, it is better to be safe than sorry when it comes to data loss.

Precautionary measures can serve as a barrier for bad actors who are trying to infiltrate your servers and data repositories.

It is in your best interest to implement data recovery plans. By doing so, you will minimize risks and increase the protection of sensitive data. 

No matter if you are safeguarding the client's personal information or intellectual property, data encryption could prevent the incidents.

On top of that, the implementation of data recovery will make your business compliant with national regulations. 

As we said earlier, the regulations in this sector can lead to fines and penalties if you fail to follow the necessary procedures.

How to Choose the Best Data Recovery Software for Small Businesses?

So, if you decide to install a data protection system, your business will benefit in more than one way.

However, it is essential to choose the right software for your needs. After all, data recovery plans come in all shapes and sizes. Not every company will have the same requirements, so it is crucial to select the one that suits your business.

For instance, it is imperative to find software that relies on a multi-faceted approach. What does this mean? Allow us to explain.

Well, such software would protect several segments of your IT infrastructure. Nowadays, cloud-based backup is a must, and the same applies to anti-virus protection.

On top of that, high-quality software should come with automatic detection of suspicious activity.

In other words, the program should scan all areas of your operations to prevent fraudulent or malicious attacks before they infect the entire system.

Of course, dedicated customer support is also a must-have in this day and age. The support staff should be available 24/7, and they should react to your calls within seconds.

How Many SMBs Invest in Data Recovery?

Despite all of these things, six out of ten small businesses do not have a data recovery plan in place.

Likewise, only three in ten employees will receive cybersecurity training. Thus, it comes as no surprise to see that only 14% of small businesses can defend themselves from malicious attacks.

We already said that almost 90% of executives fail to understand the importance of data protection.

As a result, small businesses in the United States incur around $200,000 in losses yearly due to compromised data.

Of course, human errors are the primary reason for data loss. Yet, it is clear that recovery strategies would prevent a significant number of these events.

Final Thoughts

In conclusion, precautionary measures are the best course of action for small businesses in the US. By implementing a data recovery plan, companies can decrease the risk of devastating data losses.

Recovery protocols are nothing to be scared of, and most of them are straightforward and easy to follow. With a little bit of training, your employees can be up to speed in no time.

After all, there is no use in crying over spilled milk. Therefore, be proactive and start using a system that will protect your business from disastrous data breaches so that you can focus more on your business growth strategies.


About the Author

Mila Bera 

Toronto born, puppy-lover and passionate blogger. Traveling the world and proving people wrong is my specialty and hobby. Love reading up on the newest trends and have a passion for anything creative and trending. 
Published Tuesday, April 14, 2020 7:19 AM by David Marshall
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