Why Startups Must Prioritize Cybersecurity and Compliance
With cybersecurity and compliance being some of the most important aspects of running a successful business, they are unfortunately overlooked by many upcoming startups, which in today’s world are considered to be one of the primary resources driving innovation forward. These startups are highly agile and operate on such one of a kind ideas with small teams. However, in the process of achieving agility, these startups tend to overlook cybersecurity and compliance. Not only does neglecting compliance and cybersecurity practices tend to be dangerous for startups, it can even spell doom for them. And, this lack of attention can hinder the growth of many early-stage startups devoid of willing resources.
The sensitive data involved with startups like customer information, payment details, and proprietary tech are by themselves enough to get these startups targeted by tech-savvy criminals or cybercriminals. Unlike larger companies that have advanced technologies along with a high budget to maintain defenses, startups tend to be severely lacking when it comes to the finances needed to recover from breaches. Cyberattacks like ransomware or phishing have the potential to devour funds, disrupt the normal flow of operations, and even erode customer trust. A report released in 2023 indicated that nearly sixty percent of small businesses that have been subjected to cyberattacks tend to fold within a duration of six months. Customers losing confidence with a startup or a startup facing legal action because of data leaks brings the startup’s growth to a standstill before it even manages to gain some momentum. Spending a small portion of the finances on basic cybersecurity such as multi-factor authentication, encryption, or firewalls can act as a digital moat that keeps and protects assets while still helps in guarding these sensitive assets.
Compliance is considered to be an effortless task and handled through red tape, but it actually tells a different story. Compliance works to showcase a signal of trust. Standards and regulations like GDPR and CCPA or other sets of rules that are industry specific are among the many core frameworks of standards that tend to be avoided by early-stage startups, devoid in such resources. Nevertheless, even if it does consume a bit of your resources, compliance should be taken seriously as it helps protect the sensitive assets and information of an organization. Focus on compliance and documentation proves to be efficient rest assures proact avoidance of cyber threats and self-regulation courses to limit available damage.
