A Financially Successful Future Starts With Cyber Security
I want my business to fail and be shuttered within 5 years......said NO ONE EVER!!
Have you ever thought about how a cyberattack would impact the valuation of your business? Yes, I get that daily operations keeps you busy enough, and there’s plenty of financial demands, but the choices you make today regarding cyber security, are going to have a huge impact on your tomorrow as a business owner.
Cyber security has become the number one issue facing businesses worldwide according to IBM. If your list hasn’t been updated lately, it’s time to think about this in a new way.
How many companies who thought they had a bright future ahead of them are now completely non-existent due to a cyberattack? About 60%. Yes, about 60% of small-medium businesses that get hit by a cyberattack go out of business within six months of the event according to research.
If you talked to those business owners today, what do you think they’d say about their choices?
Remember, your business's valuation isn't just about the revenue you generated last month or the profit margins from the last financial year. It's a comprehensive reflection of your business's potential future value. It’s the number potential buyers, investors, or partners will consider when they assess the worth of your business.
The heart of an SMB isn't just its products or services but its potential for growth, its brand reputation, its customer loyalty, and its operational efficiency. Each of these facets is intricately linked to cybersecurity and compliance.
Cybersecurity: It’s More Than Just Data
We’re all aware of the immediate financial pain caused by a cyberattack, but in addition to that, there’s the hit to your reputation and your business relationships. And then there’s the road to recovery, which presents all new challenges.
Imagine a local accounting firm that has built its reputation over decades. They experience a cybersecurity breach and in a heartbeat all of their clients’ sensitive information is now in the hands of hackers, which puts them under attack. The attack then becomes a ripple effect victimizing innocent people, people who once trusted that accounting firm.
And don’t forget, you’re not just storing customer data, you’re relying on digital tools for operations, sales, inventory management, and more. A cyber-attack can disrupt these tools, resulting in lost sales, operational inefficiencies, and even contractual penalties.
The Real Link Between Cybersecurity and Business Valuation
The math is simple:
A secure SMB = a more valuable SMB.
When potential investors or buyers look at your business, they aren’t just assessing your current profit margins. They’re evaluating the potential risks. A robust cybersecurity framework indicates sound management, forward-thinking, and an understanding of the modern digital landscape.
On the other hand, a history of breaches or lack of proper cybersecurity measures raises red flags. It not only indicates potential future risks but also questions the competency of the management.
Three Steps to Take Now To Maximize Your Valuation
- Embrace Regular Risk Assessments: Don't wait for a breach to realize your vulnerabilities. Regular risk assessments can help you identify potential threats and weak points. For SMBs, this doesn't just mean a technical assessment but understanding the potential business implications of each vulnerability.
- Prioritize and Act: Once you've identified vulnerabilities, prioritize them based on their potential business impact. This could involve steps like securing customer data, training staff against phishing, or implementing regular software updates. Remember, it's not about ticking boxes but ensuring long-term security and, by extension, the viability of your business.
- Seek Expertise: While SMBs might not have extensive resources, investing in expert advice can pay long-term dividends. This could be hiring a cybersecurity consultant, attending workshops, or simply staying updated with the latest threats and solutions.
Every decision can have long-term ramifications. While cybersecurity might seem like an IT expense today, it’s actually the bridge into a successful future tomorrow. It’s not just about preventing immediate losses; it’s about securing your business’s success. Every layer of protection you add today increases your SMB's value tomorrow. Make sure your approach to cybersecurity reflects its profound importance.
Today you have a chance to choose success.
