A lot of people assume that cybersecurity is a subject that should only concern large companies and organizations. There is an assumption that they are the only ones who are vulnerable to threats.
This is not entirely true. We have every reason to believe that hackers benefit from penetrating the security system of only large corporations. But the truth is, even small businesses and startups can be just as vulnerable. In this article, we are going to discuss various reasons why cybersecurity is also an absolute must for small businesses and startups.
Information is Invaluable
Agreed, small businesses and startups don’t have a threat landscape as big as large corporations. Still, they have information that can be valuable to hackers. What is this invaluable information?
- Product design
- Product ideas
- Business model
- Customer data
- Employee data
Startups would be the best example of this. Most of the time, startups develop a new product or technology that will bring new solutions to a certain field. In that case, it is a business idea that is most certainly valuable to the owners of the organization, most importantly to hackers.
If a hacker penetrates the database, he could get a hold of business information and monetize it for his interest. If this happens, the owners of the startup not only lose all the investments they have made in the past but also their entire business.
On a different scope, hackers could also make money out of your customer and employee data by stealing social security data and banking details.
Startups and Small Businesses are Easy Targets
It is easy to imagine large companies and organizations being the picture-perfect target of hackers. But what we don’t often consider is that these large organizations have strong security systems as well. This makes them a challenging target for hackers.
Most of the time, what hackers are looking for are easy targets. Aside from that, small businesses are plenty in number. This means that hackers will be able to make a lot of money easily through them.
In comparison to a large corporation that implements a lot of cybersecurity measures like SOCKS Proxies, the hacker would need to exert quite an effort to get into their system. SOCKS stands for Socket Secure. A SOCKS proxy is intended to reroute your internet IP address making it difficult for web hosts to track where you are.
Targeting small businesses could be as easy as sending a phishing email to an employee. With that, if a startup was unable to train employees on cybersecurity, the business could easily be accessed by unwanted parties.
Cyber Attacks can Easily Destroy Small Businesses and Startups
Ventures that are still in their early stage do not have the same foundation as large corporations. With that, one small threat of a cyber attack could lead to a business’s demise.
Small businesses may be hesitant to invest in cybersecurity. But if expenses are the issue, you should take into account the potential costs that you have to pay for in case someone hacks into your system. If the consequences result in closing down your business, it might be a good idea to combat this possibility by setting up at least the basic security systems and having your team trained on cybersecurity.
You Could Lose Employees if Your Business is Too Vulnerable to Cyber Attacks
Cyber attacks do not only put the business at risk but also everyone you transact with including your customers and employees.
Since employees share a part of their personal information with the company they work for, they are usually attracted to companies that have a good cybersecurity system.
Let’s say that you have your employees’ TIN, social security information, as well as their debit or credit card data. And then, your system had been reportedly compromised thrice in a row. This could alert some of your employees to look for a different company with better security.
This could pose a threat to your operations. In a sprouting business, top talents are extremely important. If you lose some of your best workers, it might take you a while to find someone to replace these assets. Aside from that, losing these workers could cost you money as well.
Increased Cybersecurity can Improve Credibility
If you have a small business or a startup, the beginning phases of your venture include partnering with individuals and other corporations that can help you grow. Having a well-developed product and competent board members is sufficient to help you to attract the kinds of partnerships that you need for your business.
But if these organizations see that your cybersecurity is lacking, this could be a reason for them to back out. This is because partners are expected to share exclusive and confidential information with you. And if you don’t have decent security, there is fear of having their business-related information leaking out.
The same goes for customer acquisition. People want to transact with trustworthy businesses. If you have multiple counts of security break-ins, this could be a red flag for some customers.
Bigger companies may be able to withstand a couple of customer losses due to their massive resources and their already-wide customer base. But for a startup or even a small business, losing a few prospects can mean a massive loss in revenue that could have helped take your business to its next phase.
In this sense, investing in cybersecurity is an absolute must.
Cybersecurity Boosts Productivity
Let’s say that you don’t have a decent security system in place.
This could result in some delays in the task processing of your employees. They would have trouble accessing networks due to multiple errors that they could encounter from time to time. Aside from the risk of having the entire data system compromised, it also slows down the pace of employees.
In business, time is money. So, if the lack of cybersecurity contributes to slow growth, investment in the former might be something you want to consider.
Final Takeaway
Cyber threats are continuously increasing exponentially. And even though it may not seem like it, the ones that are most at risk are startups and smaller organizations. Making initial investments in cybersecurity may not bring you immediate profit but it is essential to protect your business during trying times.
What is your biggest takeaway from our post? We would love to know in the comment section.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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