How to protect your online business in 2024 and beyond
In the US, entrepreneurship boomed due to the Great Resignation and the Pandemic. Data from the US Census Bureau Business Formation Statistics shows that there were a record number of 5.4 million applications made in 2021. Consumers spent over $870.78 Billion online at US merchants. Online business is expected to account for 29.7% in 2022. This number will continue to increase through 2023.
Protect your online business in 2024 with these simple ways.
Online businesses, despite the fact that they are primarily based remotely, face the same security risks as those located on-site. These strategies can help you avoid crises and unexpected problems.
Twilio, a San Francisco-based firm, suffered a recent phishing attempt that could have affected over 150,000 corporate customers, including Facebook and Uber. Online business owners are faced with a number of threats, including phishing, insider attacks, malware, and ransomware. Online businesses need to implement the following security systems and be on guard for scams that could damage their reputation and security.
Back up your data regularly.
Back up your data regularly, regardless of whether you run your business entirely online. Cloud storage services have made this process easier, especially for SMBs. TechTarget says that you can back up your data directly to the public cloud or to a service provider. This will help you protect your online business data from a cyberattack or theft of data.
Establish a Legal Entity
It’s a good idea to reclassify your online business to a better-protected structure, such as a Limited Liability Corporation (LLC), when it grows. How to Start an LLC explains that this is a simple and quick way to separate your business from your assets. A sole proprietorship can manage an LLC, as well as multiple members. This makes it a great choice for SMBs. By forming an online LLC, you will be eligible for a 20% deduction that is valid from 2018 through 2025.
Obtain Business Insurance
It’s important to insure your business even after you form an LLC. This will protect you from any lawsuits or liabilities that your business structure may not cover. SmallBizTrends says that the insurance you need is likely to be tied to your business structure. A small group of people manages most online businesses. Therefore, employment practices liability insurance may not be the top priority. Cyber insurance is a good option, especially if your business handles sensitive customer data online.
Secure Network and Data
You should also keep your operating system and security software updated. Applying a firewall, anti-spam, and PC protection software will help you keep data threats at bay. Wireless networks are also more vulnerable to hacking. Invest in strong encryption and make your network untraceable. If your business is remote, you should also create a plan to protect your employees’ devices. This will allow your company to maintain productivity and promote safety.
Cybersecurity Training
Insider work and human errors are the main causes of data breaches. In our article Critical Lessons for Building Successful Businesses, we stress that assigning too many responsibilities without adequate guidance or measurement to employees is a big mistake. If you plan to expand your business online, you should also involve your employees. Please provide them with enough cybersecurity training to keep your employees and businesses safe in the digital world.
Final Thoughts
This article outlines five ways to protect your online business. You can find many more options if you do your research. Continue to learn more because you will be able to determine what is best for your company and can also pass on this knowledge to your peers and employees. Even if you do not anticipate any particular problems, it is wise to prepare yourself legally in case they occur. Please don’t skimp on security; it is a vital investment for your business.
