{"id":6023,"date":"2016-05-23T10:51:20","date_gmt":"2016-05-23T00:51:20","guid":{"rendered":"https:\/\/www.backupassist.com\/blog\/?p=6023"},"modified":"2024-02-05T06:07:49","modified_gmt":"2024-02-05T06:07:49","slug":"are-you-gambling-with-your-business-the-big-costs-of-data-loss-on-smbs","status":"publish","type":"post","link":"https:\/\/www.backupassist.com\/blog\/are-you-gambling-with-your-business-the-big-costs-of-data-loss-on-smbs","title":{"rendered":"Are you gambling with your business? The big costs of data loss on SMBs."},"content":{"rendered":"

When you\u2019re busy trying to build up your small to medium business, it can be hard to spare the time to think about data loss. But statistics show businesses are sunk up to 70% of the time by major data disasters1<\/sup>. <\/strong>This means data loss is something most\u00a0SMBs literally can’t afford.<\/p>\n

Why do so many businesses go bust after a data loss disaster? Well, we\u2019ll answer that for you here.<\/p>\n

Cash Flow Issues<\/span><\/h2>\n

A loss of business continuity means money lost; not just on revenue not coming in, but also your employees being unable to do their jobs. But let\u2019s put cold, hard figures to it (and if you\u2019re not into math, just skip to the big, bolded parts).<\/p>\n

If you\u2019re running a 50-person company generating $8 million a year, and you\u2019re hit by an outage, the math shows you\u2019ll lose about $5,5002<\/sup> an hour until it\u2019s resolved. The average U.S. downtime is just under eight\u00a0hours per outage. That means a single outage is going to cost you a staggering $44,000.<\/strong><\/p>\n

The thing is that outages are a common occurrence, especially for small businesses. The average small business experiences around six outages a year2<\/sup>, which is a ton of lost revenue.<\/p>\n

To be clear, we\u2019re not even talking about outages that lead to critical data loss, just a loss of business continuity. That means that on top of your loss of cash flow, you may lose data that puts you out of action for longer<\/strong>.<\/p>\n

Productivity Loss<\/span><\/h2>\n

When computers or servers fail, a business can be left paralyzed, particularly their employees. Employees are often sent home or left twiddling their thumbs until the system is restored. For small businesses, an outage means suffering a 43% loss in productivity3<\/sup><\/strong>. On top of that, each company loses on average 552 man hours per year to an outage.<\/p>\n

That means as an employer running an SMB, you\u2019re paying for 552 hours a year in which nobody\u2019s working<\/strong>.<\/p>\n

Reputation Loss<\/span><\/h2>\n

It\u2019s not rocket science; if you\u2019re not able to provide normal service to your customers, they\u2019ll think you\u2019re unreliable. When it comes to downtime, 35% of businesses report diminished customer loyalty from an outage3<\/sup><\/strong>. Up to half report a diminished business reputation as a whole. That means your customers might go elsewhere during an outage, and they just might not come back.<\/p>\n

Think that number is scary? Well, three out of four customers who experience a data loss stop dealing with that business2<\/sup>. <\/strong>\u00a0So don\u2019t expect your customers to be forgiving of a data crisis.<\/p>\n

Morale Loss<\/span><\/h2>\n

An outage is good for your employees, right? Who doesn\u2019t enjoy free pay and no work? Well, most employees, actually. Up to 44% of businesses also report reduced staff morale from outages3<\/sup>.<\/strong> That\u2019s not entirely surprising, seeing as their workplace can\u2019t keep the computers running. What\u2019s next, pay checks? An outage will probably take down the payroll server too.<\/p>\n

Data Loss<\/span><\/h2>\n

Any outage has the potential to cause data loss if you\u2019re not properly backed up. 58% of IT professionals said their small business would go out of business from sustaining data loss4<\/sup>.<\/strong><\/p>\n

That\u2019s just their thoughts, right? Well, not really. One study shows that 90% of businesses who suffer catastrophic data loss don\u2019t survive5<\/sup>. <\/strong>For a lot of businesses, data is their life blood, and when it\u2019s gone the business crumbles with it.<\/p>\n

Data loss is a silent killer. And when I hear more than half of SMBs don\u2019t have either a disaster recovery plan or daily backups, well, I break out in a cold sweat. That\u2019s how you get data loss, people!<\/p>\n

Security Loss<\/span><\/h2>\n

An outage is an inherent threat to your workplace security. Whenever your servers go down, over half of employees admit to using unsecured consumer sites to store their data6<\/sup><\/strong>.<\/p>\n

Moving to risky tools to send and access your confidential business information is not a good thing. Not only does this threaten your business, but also can lead to identity theft.<\/p>\n

A security breach is a problem for any business, no matter their size.<\/p>\n

Conclusion<\/span><\/h2>\n

The strange thing is, data loss is completely avoidable for most SMBs.<\/strong> It\u2019s not anywhere near as hard to protect your computer data as most think it is.<\/p>\n

While many people think daily or weekly backups lead to business disruption, the truth is that a good backup software tool will be able to save your content in real time.<\/p>\n

SMBs can avoid data loss disasters by using affordable, set-and-forget backup software like BackupAssist<\/a>. That way you\u2019re protected against losing data or business continuity,\u00a0and you’re not gambling with your business’s future.<\/p>\n

    \n
  1. \n
    DTI\/Price Waterhouse Coopers<\/strong><\/h6>\n<\/li>\n
  2. \n
    Everonit-data-loss-inforgraphic, http:\/\/www.everonit.com\/data-loss-infographic\/everon-data-loss-inforgraphic-r4.pdf<\/strong><\/h6>\n<\/li>\n
  3. \n
    CA Technologies, \u2018The Avoidable cost of downtime\u2019, Jan 2011.<\/strong><\/h6>\n<\/li>\n
  4. \n
    http:\/\/www.tristaritsupport.co.uk\/it-support\/can-business-survive-without-backups\/<\/strong><\/h6>\n<\/li>\n
  5. \n
    University of Texas, National Archives & Records Administration in Washington<\/strong><\/h6>\n<\/li>\n
  6. \n
    Whitepaper: Devastating Downtime, Globalscape. 2014<\/strong><\/h6>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    When you\u2019re busy trying to build up your small to medium business, it can be hard to spare the time to think about data loss. But statistics show businesses are sunk up to 70% of the time by major data disasters1. This means data loss is something most\u00a0SMBs literally can’t afford. Why do so many … Read more Are you gambling with your business? The big costs of data loss on SMBs.<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":19714,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22,23],"tags":[440,164,441,124,125],"class_list":["post-6023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interest","category-news","tag-cost","tag-data","tag-money","tag-small-medium-business","tag-smb"],"yoast_head":"\nAre you gambling with your business? 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