By Taylor Hersom, Founder and CEO of Eden Data

Are you looking for a surefire way to get your business on a bull run? We thought so. Most people know that investing in cybersecurity for businesses is a safe and practical decision. But did you know it's financially savvy too? A survey by Beyond Identity found an interesting correlation in their results-62% of hyper-growth companies surveyed stated they take a proactive approach to cybersecurity. These results indicate that companies on the rise understand how a robust online defense can affect expansion.

With 74% of companies currently using or planning to implement a hybrid working policy, it's more crucial than ever for companies to have a secure network. During 2020 and 2021, data breaches in small businesses skyrocketed by 152%, showing that it's not just Fortune 500 companies that should be cybersecurity conscious. Businesses of all sizes can bolster their defenses by applying a variety of security best practices, including: migrating to a cloud security platform, developing your DevSecOps team, or installing multi-factor authentication.

So, how can investing in cybersecurity help your business expand? Let's dive in.

Protect your data and reputation

It's no secret that a reputation takes years to build and seconds to destroy, and this point was perfectly demonstrated by good ole Yahoo.

One of the most infamous cyberattacks in history affected Yahoo in 2013, with 3 billion accounts being breached. The hackers took off with users' names, birthdays, phone numbers, and passwords. This event was, and still is, the most significant data breach in history. That's not a title you want to be known for...

A class action settlement against Yahoo was finally agreed upon in 2020. The multinational tech giant paid $117.5 million to settle claims that they didn't sufficiently protect and respond to the multiple data breaches between 2012-2016. It's unlikely, in this case, that Yahoo would concur with P.T Barnum's famous quote that "there's no such thing as bad publicity."

Protecting your data ensures your company's reputation stays untarnished. This can also ward off potential hackers looking for an easy target and a fast payout. A strong and impenetrable status makes you the perfect choice for current and prospective clients. (And it might save you $117.5 million).

Trust pays(off)

Cybercrime is a popular topic in global news, and consumers are well aware that whichever company they choose to frequent will mean parting with some of their precious data. Understandably, they expect this to be protected when they make this commitment. And, it's no surprise that a survey by Tableau found that 48% of consumers have stopped purchasing from specific companies altogether due to security and privacy concerns.

Securing a solid customer base is one of the cornerstones of business, and this is only possible with customer trust and loyalty. Some companies refuse to invest in cybersecurity as they see it as another insurance policy they may never need. However, this wishful thinking is a clear misjudgment, as trust isn't given; it's earned. And through cybersecurity best practices, you can display your company's consistent commitment to putting customer security first.

A Harvard Business School review found that increasing customer loyalty by 5% increases profits by over 25%. By pledging to protect customer data, in return, customers pledge to protect your profits through brand loyalty. Who doesn't love a win-win?

A safe company is a safe bet

Attracting investment and funding can be quite a challenge. Investors review many aspects of a business, including: market size, finances, and growth. Another key feature in this digital age that always comes under scrutiny is cybersecurity. With this point becoming more crucial to customers, it's also key to investors.

One way to appeal to backers is by securing an ISO certification-particularly the ISO 27001. This is an Information Security Management System that, once achieved, shows that your company keeps all systems, data, and information in a secure and protected manner. A certification like this separates professionals from amateurs in cybersecurity. Even back in 2009, a United Nations survey found that 98% of companies stated that having an ISO certification was a good investment. An ISO 27001 to an investor is like an oasis in a desert-highly sought after.

External verification as a safe and ethical company indicates what a sound investment your business would make. However, it's not only investors who look into a company's morals. Today we live in a world of 'conscious consumers,' mainly consisting of Gen Z's and Millenials who are putting their money where their mouth is when it comes to shopping ethically and sustainably. Consumers want to witness the steps a company is making to protect the world and their data.  

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ABOUT THE AUTHOR

Taylor Hersom builds world-class security programs for organizations who not only want to embrace cybersecurity but want to realize the benefits of putting data privacy first- from brand recognition to customer loyalty- while realizing substantial ROI. He was a top-performing security expert with Deloitte followed by a CISO for a technology firm where he built a security program from the ground up- catching the entrepreneurial bug.

He has a keen understanding of cybersecurity & compliance as it relates to the next generation of companies who are predominantly de-centralized and cloud-centric. He serves as the security thought leader for multiple organizations globally and also as a Board Advisor for various startups.

Taylor resides in Austin, TX and enjoys hiking with his three dog monsters, is never far from a book (or an entire stack), and is an avid connoisseur of lattes which you can usually find him sipping in meetings.