One of the things we like to talk about at Catalyst for Business is how small companies can protect themselves from growing digital threats. You might not think of cybersecurity as a top concern, but the risks are much higher than most people realize. It is easy to believe that only large corporations are targets, but attackers often go after smaller businesses because they’re less prepared.
You could be just one phishing email or weak password away from major losses. There are over 700,000 cyberattacks reported against small businesses during just the first year of the pandemic, according to Komron Rahmonbek of StrongDM. Keep reading to learn more.
The High Cost of Attacks
You may think your company can’t afford cybersecurity tools, but the cost of an attack is far greater. The average small business ends up losing $25,000 per incident. It is easy to underestimate how quickly the damage adds up—from lost revenue to legal fees and customer fallout.
You might assume recovery is always possible, but the truth is far harsher. Robert Johnson, President & CEO at Cimcor, stated in Cybersecurity Magazine that 60% of small businesses shut down within six months of a cyberattack. There are no guarantees when it comes to bouncing back. It is a harsh reminder that preparation matters more than reaction.
You are likely juggling multiple responsibilities as a business owner, but cyber defense shouldn’t be left out. There are affordable and simple measures that can help you stay protected, like using multi-factor authentication and updating software regularly. You won’t catch every threat, but reducing risk is better than hoping to avoid one entirely.
You don’t have to solve everything overnight, but taking small steps now can save your business later. It is better to create a habit of security than to clean up after a preventable disaster. You deserve peace of mind in knowing you’re not leaving yourself wide open.
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When you’re building a company from the ground up, you’ve got so much on your mind and on your checklist. You’re developing a product, marketing, testing, fundraising, and, of course, growing. Cybersecurity may not even be on your to-do list, and if it is, it’s probably way down at the bottom somewhere. You’ll worry about that later, right? Wrong. The sad news is that leaving your company vulnerable to threats can lead to a loss of customer trust and scared investors.
The good news is that cybersecurity doesn’t have to be super complicated or budget-busting. Here are some tips to help you make smart choices, so you can reduce your cyber risk and stay on budget.
The False Economy of Ignoring Cybersecurity
You don’t focus on cybersecurity because you think of it as a luxury. You’re not alone. Many startups figure they’ll get to security later. Then, they end up with dangerous blind spots that hackers can find their way into with ease. Think about it: if you’ve got open-source tools, third-party vendors, or remote workers, and no security measures in place, you’re exposed. Just one breach can find you fighting lawsuits and fines. And of course, your brand is now damaged.
It doesn’t have to be this way. Start small and start early. Decide that cybersecurity is the foundation of your startup and take deliberate action to map out your attack surface. You can perform a basic risk assessment with a few questions: What data do you store? Where does it live? Who has access? From there, you can use frameworks like NIST CSF or CIS Controls that will give you free guidance to protect your data and control user access.
Human Error: The Cheapest Point of Entry for Hackers
It’s at the heart of virtually every major failure at an organizational level: human error. And when you’re just starting out, you’ve got tons of new employees with access to sensitive information. They’re likely not malicious, but they might click on a malicious link by accident. And that’s all it takes to bring down your entire system. The reality is that most hackers aren’t super sophisticated. They’re counting on your staff to make mistakes.
Of course, if you’re not thinking about security, you’re not training your people in those early days. Make that shift, and you create team members trained to be aware of the risks they could pose to your company. You can start with free resources like the Cyber Readiness Institute or SANS Security Awareness. You can also require strong passwords, use a password manager like Bitwarden or 1Password, and enable two-factor authentication on every login.
Shadow IT and Third-Party Risk
You’re building from the ground up, so of course you want tools and APIs that speed up that process. The quicker you get to market, the quicker you can start bringing in revenues. The problem is that when you connect to random apps or share data across your platforms, you invite shadow IT into your company. These are systems that exist outside of your official control. Now, you’ve expanded your threat surface without even realizing it.
You can avoid shadow IT and third-party risk by standardizing your tool stack. This means that for every new application or third party you work with, you review a security checklist. It should ask questions like: Does it offer encryption? Do they have 2FA? Are the data policies transparent? Don’t give any third party full access to your sensitive data unless they’ve cleared your security standards. And you can always run any new company through Google to check for past security breaches as a measure of due diligence.
Insecure Code and Dev Environments
Developers are under high pressure to move your product to market quickly. This pressure and speed often lead them to cut corners, which leads to mistakes. Hardcoded credentials, unpatched libraries, and exposed development environments are just a few common mishaps that make it easy for attackers to get in. Far too many breaches start so innocently, due to a misconfigured server or an exposed test environment.
Here, you’ll want to utilize an automated program that can help your developers build securely. You can use patch management tools for free or at a low cost. They’ll help you scan for vulnerabilities in your codebase. You can also enforce clean development hygiene by never allowing your product data in test environments and rotating your secrets regularly. Also make sure to review your access permissions on repositories and infrastructure.
Incident Response: Hoping for the Best Isn’t a Strategy
It’s understandable: you don’t plan for incidents because you can’t imagine you’ll be a target. Why would you be? But it’s important to remember that cyber attacks aren’t usually targeted. They’re opportunistic and automated. They’re trolling for vulnerabilities and exposed systems. Then, when you are attacked, your team may be unprepared and panic. This can lead to further damage because you respond either incorrectly or too late.
Don’t worry. You don’t need an enterprise-grade SOC to be prepared. You can create a basic incident response plan that outlines who’s responsible for what, how to isolate a compromised system, and when to notify your customers and regulating bodies. Then, run a tabletop exercise every quarter to take your team through scenarios. Finally, be sure to store your key contact information somewhere accessible. Preparing in advance like this can save you time and money if and when an attack does occur.
Security Is Survival for Startups
In the end, it’s time to stop thinking of security as strictly for big corporations. It’s a survival issue for startups, and it doesn’t have to break the bank. The sooner you start treating it like a core business function, the easier and cheaper it will be to manage it. Just get clear, stay consistent, and commit. When you invest the time and discipline early, you’ll avoid costly mistakes and build trust with your users and investors. Then, you can scale with confidence.