In today's digital age, small businesses rely heavily on information technology (IT) to streamline operations, enhance productivity and stay competitive. However, managing IT systems can be challenging, especially for organizations with limited resources and technical expertise.
One critical aspect that often gets overlooked is budgeting for IT-related expenses. Here are seven of the most current and common IT issues that small businesses frequently forget to include in their budgets.
1. Network Connectivity Problems
A stable and reliable network connection is crucial for seamless communication, accessing critical data and conducting online transactions. But many small businesses experience slow internet speeds, frequent outages and limited bandwidth, which can disrupt operations and hinder productivity.
Too often we come across an issue with connection where we find the current provider’s equipment is a decade old or more! To overcome these issues, businesses should:
- Evaluate their internet service provider (ISP) to ensure reliable connectivity and adequate bandwidth (don’t forget to make sure the provider’s equipment is up to date and the latest model)
- Upgrade network infrastructure by investing in modern networking equipment such as routers, switches and access points
- Implement redundancy measures like backup internet connections to ensure uninterrupted connectivity in case of primary network failures[1] (many providers now have LTE backup connections as part of their offerings)
- Use available tools to limit users’ ability to access unnecessary content and streaming
2. Data Security Vulnerabilities
Data security is a critical concern for small businesses, as cyber criminals often target them to exploit vulnerabilities. A data breach can have severe consequences, including financial losses, damage to reputation and legal implications. This applies to where the data lives. It can be on-premises or in the cloud. To enhance data security, businesses should:
- Implement robust password policies and encourage employees to create strong passwords and regularly update them
- Install and update security software, such as next-gen antivirus and anti-malware programs, on all devices connected to the network
- Regularly back up critical data and store it securely to protect against data loss[1]
3. Compliance Requirements
Many small businesses overlook the importance of compliance with industry regulations and standards. Lack of compliance can result in hefty fines and legal issues. Even if you aren’t required to follow guidelines for compliance, there are minimum standards that all businesses should follow.
Consider following the National Institute of Standards and Technology’s (NIST) Cybersecurity Framework 2.0. Businesses should allocate budget for:
- Regular compliance audits to ensure adherence to relevant regulations
- Training employees on compliance requirements and best practices
- Implementing necessary changes to IT systems and processes to meet compliance standards[2]
4. Cyber Insurance Applications
Cyber insurance is becoming increasingly important as cyber threats continue to evolve. Business owners need to weigh the risk against their exposure to financial loss. Depending on what client data you have control over, the cost could be overwhelming. It’s important to know that following a security framework typically lowers your exposure to threats and the cost of the insurance.
You should consider:
- Assessing your cyber risk and determining the appropriate level of coverage needed
- Budgeting for cyber insurance premiums to protect against potential financial losses[2]
5. Data Backup and Disaster Recovery Challenges
Data backup and disaster recovery are essential for ensuring business continuity in the event of a hardware failure, cyberattack or natural disaster. Having your data in the cloud doesn’t mean it is safe from harm. Small businesses often neglect to budget for:
- Regular data backups and secure storage solutions
- Developing and testing a comprehensive disaster recovery plan
- Investing in virtualization technologies and redundancy to reduce downtime and speed up recovery[2]
6. Lack of Strategic IT Planning
Many small businesses operate without a strategic IT plan, leading to reactive rather than proactive management of IT resources. To address this issue, businesses should:
- Develop a long-term IT strategy that aligns with business goals
- Budget for regular IT assessments and updates to ensure systems remain efficient and secure
- Consider hiring a virtual chief information officer (CIO) to provide strategic IT guidance[3]
7. User Access Management
Proper user access management is crucial for maintaining data security and preventing unauthorized access. Small businesses should budget for:
- Implementing user access controls and regularly reviewing access permissions
- Training employees on the importance of secure access practices
- Investing in identity and access management (IAM) solutions[2]
Conclusion
By proactively addressing these common IT issues and including them in budgets, small businesses can ensure smoother operations, enhanced security and long-term sustainability.
Remember that investing in IT is not just about keeping the lights on — it's about enabling growth and staying competitive (and safe) in an increasingly digital world.
Need Help?
Gross Mendelsohn’s Technology Solutions Group is here to assist you with your small business’s IT needs. Contact us here or call 410.685.5512 for help.
[1] https://ithavenpro.com/common-it-issues-faced-by-small-businesses-and-how-to-solve-them/
[2] https://www.vc3.com/blog/9-most-common-technology-problems-for-small-businesses
[3] https://www.revnet.ca/blog/6-common-it-challenges-facing-small-businesses-and-how-to-solve-them/
