Many SMB owners think IT downtime only costs them a few productive hours, but there’s a lot more at stake when your systems go down. Customer satisfaction and loss of brand integrity are just two of the key losses apart from the more evident costs such as lost productivity and a temporary dip in sales.
Here’s a few other ways downtime can hurt your business:
1. Customer Loss - Today’s buyer lacks patience; They are used to getting everything at the click of a mouse, at the tap of a finger. Suppose they are looking for the kind of products/services that you offer and your site doesn’t load or is unavailable—even if temporarily-- you are likely to lose them to a competitor—permanently.
2. Damage to Brand Reputation - Customers are now using Social media platforms like Facebook and Twitter and blogs to vent their bad brand experiences. Imagine an irate customer who doesn’t know if their card was charged on your site, or not, due to a server error. If it’s your bad day, they could probably be using Facebook or Twitter to share their bad experience, and it could be viewed by hundreds of people, causing irreparable harm to your brand image.
3. Loss of Productivity - When your systems don’t work, this can have a direct impact on your employees’ productivity. Consider a research firm of 200 employees where they primarily rely on internet connectivity to access the knowledge base. If the server hosting the knowledge base is down, there’s a total loss of at least 1600 work hours for one day.
4. Overtime, Repair and Recovery, Compensatory costs - In the above case, imagine the overtime wages the business would have to incur if they were to make up for the work loss they faced owing to downtime. In addition, there’s always the cost of repair—the money the business would have to shell out to fix the issue that caused the downtime and get the server up and running again.
In some cases, businesses would have to incur additional costs to make customers happy. These could include giving away the product for free or at a discount, or using priority shipping to make up for a delayed order.
5. Possible Lawsuits - Businesses could also be at the receiving end of lawsuits. For example, a downtime that has an impact on production, delivery or finances of the customer could invite litigation.
6. Marketing Efforts Rendered Useless - Consider a pay-per-click advertisement that shows up for the right keywords on Google, or an extensive e-mail campaign that your business engages in. However, when the prospect clicks on the link, all they see is an error message - Isn’t that a waste of your marketing budget?
The bottom line—one natural disaster, one technical snag or just one power outage has the power to put you out of business - both virtually and in reality. It’s probably time to think about how you can mitigate the threat of a possible downtime and whether your MSP can act as an effective and efficient ally in this battle for you.
You’ve been there…we all have. You are surfing the web when you come upon an amazing site that you just have to be part of. You decide to sign up! The site asks you to create a username and password. Hmmm, how often will you visit this site? You know you won’t remember some arbitrary password so you quickly type in your usual information, keeping it easy to remember for the next time you visit the site. The average person uses greater than twenty log ins on different websites and tend to use and reuse weak passwords website to website. Who can remember all the passwords for all of your accounts anyway? Right? But what you just did, by reusing a weak password, is make it easier for a hacker to access your information and the ability for them to enter a website as you. In 2016, Yahoo was a victim of a cyber attack which allowed hackers to access valuable information from one billion accounts. So now, if your Yahoo account was hacked, and you reuse the same weak passwords, your …
Business Disaster: What Threatens Small Businesses the Most? There are many threats to the integrity of a small business, and not all of them are as dramatic as a cyberattack or a hurricane. Every small business needs to do a risk assessment to determine all the threats that exist that could bring harm. External threats are the ones that get the the most attention. These can be big snowstorms or hurricanes that bring down power lines and network connections. They can also be man-made. A power outage due to a grid failure, or an act of terror. Also in this category are phishing scams, cyber attacks and data theft from external sources.All of these are the ones that make the evening network news, and every business needs to plan how to handle them. However, there are some internal threats that can be just as serious, but are far less attention getting.For example, human error. Stolen data can occur because someone forgot about changing their passcode, or they left a smartphone containing…
Why Small Businesses Shouldn't Avoid Making Disaster Recovery Plans. Entrepreneurs and small businesses, especially ones that are fairly new, often don't think about making plans to recover in case of a disaster. However, it is the smallest business that most likely has the fewest resources to fall back on in case of disaster. Why does this happen? It isn't on an entrepreneur's radar - The challenge and hurdles of starting out are what drive small business owners. The excitement that comes with getting a new client or releasing a new product are what motivates them. To be honest, things like disaster recovery plans are a little dull and aren't part of the exciting day-to-day hustle of running a company. As a result, these issues get put on the back burner.Planning tools can seem too complex - Ideas like "risk assessment" and "business impact analysis" can be intimidating. Many SMBs may just feel the whole area is overwhelming and leave it to anothe…