14 Smart Security Tips to Safeguard Your Small Business

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For small businesses, a security breach can be particularly devastating, leading to financial losses, damage to reputation, and loss of customer trust. Just because your business is small doesn’t mean it isn’t a target for hackers or criminals. To protect everything you’ve built, you’ve got to be vigilant, mindful, and systematic. Here are some essential digital (and non-digital) security tips to safeguard your small business:

1. Protect Sensitive Data

Not all employees need access to every piece of information in your business. Limit access to sensitive data to only those who require it for their job. Implement role-based access controls and regularly review who has access to what information. This minimizes the risk of insider threats and accidental data breaches.

2. Guard Against Theft

Mobile devices and laptops should also be protected—especially if they hold sensitive information or can access the business network. Install security apps and tracking devices on equipment and mobile devices. Require your employees to password-protect their phones and laptops. Encourage them to encrypt data, update passwords, and be mindful of how they browse and work.

3. Keep Software Updated

Outdated software is a common entry point for cybercriminals. You may think you are saving money, but older software is more susceptible to data breaches and malware attacks—and it will cost you a lot more if criminals puncture their way through. So, make sure all your business software, including operating systems, applications, and antivirus programs, are updated regularly. Enable automatic updates wherever possible so you’re always protected with the latest security patches.

4. Implement a Firewall and Antivirus Protection

A firewall acts as a barrier between your business’s internal network and external threats, helping to prevent unauthorized access. Ensure you have a reliable firewall in place and that it’s properly configured. Additionally, install and maintain reputable antivirus software to detect and remove malicious software from your systems.

5. Use Strong Passwords

Ensure that all your business accounts, from your email to checking and savings accounts, are protected with strong, unique passwords. A strong password typically includes a mix of letters, numbers, and symbols. Avoid using easily guessed information like birthdays or common words.

6. Enable Multi-Factor Authentication

To further secure your accounts, enable multi-factor authentication (MFA). MFA requires users to provide two or more verification factors to gain access to a system. This could be something they know (like a password), something they have (like a smartphone), or bio-identifiers (like a fingerprint).

7. Train your Employees in Cybersecurity Matters

Your employees are your first line of defense against cyber threats. Regularly train them on the importance of cybersecurity. If necessary, teach them how to recognize phishing attempts. Discuss the dangers of clicking on suspicious links or downloading unverified attachments. Make sure they understand the importance of safeguarding employee data and your business’s sensitive information.

8. Back up your Files

Data loss can occur due to cyberattacks, hardware failures, or accidental deletion.  If you don’t already backup your files, implement a program that automatically copies your files to storage. That way, if your main hard drive is compromised, you can quickly recover and assess lost data through your secure backup source. Store backups in a secure location and consider using both local (external hard drives) and cloud-based solutions.

9. Secure Your Wi-Fi Network

An unsecured Wi-Fi network can be an easy target for cybercriminals. Protect your network by using a strong, unique password and enabling encryption (WPA3 is the most secure option). Consider hiding your network’s SSID (the name of your Wi-Fi) so that it’s not visible to outsiders. For added security, create a separate guest network for visitors. Avoid using public networks when working off-site on company laptops, phones, and devices.

10. Install Security Systems

Physical security is just as important as digital security. Install security cameras, alarms, and access control systems to deter theft and vandalism. Ensure that your premises are well-lit and that entry points are secure. Additionally, consider using motion detectors and smart locks for added protection.

11. Monitor Your Systems

Regularly monitor your network and systems for any unusual activity that could indicate a security breach. Set up alerts for suspicious behavior, such as multiple failed login attempts or unexpected data transfers. Early detection can help you respond quickly and minimize damage.

12. Protect Your Intellectual Property

Your business’s intellectual property (IP), such as trademarks, patents, and copyrights, is a valuable asset. Protect your IP by registering it with the appropriate authorities and monitoring for unauthorized use. If necessary, seek legal advice to enforce your rights and prevent others from infringing on your IP.

13. Plan for the Worst

Despite your best efforts, a cyberattack can still occur. Develop an incident response plan that outlines what steps to take if your business is compromised. This plan should include who to contact (your credit union, IT professionals, legal counsel, customers), how to contain the breach, and how to recover and restore operations. Regularly test your plan to ensure it’s effective.

14. Invest in Business Insurance

Business insurance is a crucial safety net for small businesses. It can protect you from financial losses due to property damage, liability claims, or other unexpected events. Common types of insurance include general liability, property insurance, and workers’ compensation. Evaluate your business needs and consult with an insurance professional to ensure you have adequate coverage.

By following these security tips to safeguard your small business, you can free up time and energy to focus on growth. But remember, security isn’t just a one-time effort; it’s an ongoing process that requires vigilance and adaptation to new threats. As your business grows, your security plan needs to grow too. Stay informed and take whatever precautions are necessary to safeguard your business.

Want more small business strategies?

• Check out our article on how to minimize small business taxes (coming soon).
• Learn how to make the most of Small Business Saturday (coming soon).
• Find out how to balance business and personal finances (coming soon).