Data Loss a Problem for Over One in Five Small Businesses
As a small-to-medium-sized business owner, you work diligently to provide the best product or service possible. You know your employees and customers by name. Your company is your life’s work. As a growing business like yours, we know how hard you’ve worked for success, and that’s why we make it our business to protect businesses like yours.
Unfortunately, not all business owners know that they need data protection and end up sacrificing their business, unable to recover from losing critical data. A recent Paragon Software Group study on SMBs reveals that about 22% of companies (that’s more than one in five) have experienced data loss that caused significant impact to the business. PricewaterhouseCoopers research indicates that 70% of businesses reporting this kind of loss go out of business within a year of the event. Even more survey respondents admitted that inadequate or non-existent backup measures affected their revenues, partner relations, and brand reputation.
So let’s do some math of our own. There are 23 million small businesses in America, accounting for 54% of all U.S. sales. That means that about 5.06 million businesses have experienced significant information loss, ultimately resulting in 3.54 million small business failures, due to deficiencies in IT management. It would be a mistake to underestimate the impact that this has on local and regional economies.
But as these business owners know, and the Paragon survey illustrates, these failures are not reflective of a flaw in the product or service offered. Instead, they are the result of a lack of knowledge, training, and sophistication in IT or data management. Consider these findings:
- 41.18% of small businesses do not have a dedicated IT staff.
- 20% of SMBs do not conduct daily backups.
- 42.86% of those who do not back up daily feel that it would be an inefficient use of their time.
It’s no coincidence that the number of SMBs that fail to back up data regularly is nearly equivalent to the number of businesses that have lost data (and to disastrous result) in the past. Businesses of any size, even those too small to support a full IT department or administrator, need an affordable, reliable data protection solution in order to prevent data loss. Most expert sources now include backup in their list of best practices for all cloud users, especially businesses, as insufficient data management places revenue, reputation, and therefore, survival of the company at stake.
Small-to-medium-sized businesses can put concerns about data protection to rest by seeking a backup and recovery solution that best fits their needs. Those that are concerned about efficient use of time should look for a software solution that they can “set and forget.” In other words, software should install effortlessly, and backups should run automatically in the background. A simple, intuitive restore process will allow users to rapidly recover any missing or accidentally deleted data without perusing complicated how-to manuals or calling in an IT expert. Businesses in the market for backup and recovery should ensure that the providers being considered maintain strict security credentials and offer reliable products and support. Need more advice? Click here to see more tips on how to protect your business in the cloud.