Why Small Businesses Need to Back up Their Data

Why Small Businesses Need to Back up Their Data

In today’s digital age, data is the lifeblood of any business. From customer information to financial records and everything in between, companies rely heavily on their data to make informed decisions and stay competitive. However, this critical information is constantly at risk of being lost or compromised due to factors such as hardware failure, natural disasters, cyberattacks, and human error. That’s why it’s essential for small businesses to have a reliable backup strategy in place to protect their valuable data.

What is Data Backup?

Data backup refers to the process of creating a duplicate copy of important files, databases, or systems to prevent data loss in the event of a disaster or system failure. There are several types of data backup methods, each with its own strengths and weaknesses. Let’s take a closer look at some of the most common data backup solutions for small businesses.

   1. Local Backups

Local backups refer to the process of creating a copy of data on an external device such as a hard drive or flash drive. This type of backup is often the most cost-effective and straightforward solution for small businesses. However, relying solely on local backups is not sufficient as it does not provide protection against catastrophic events such as fires, floods, or theft.

One option for local backups that provides better protection is a Business Disaster Recovery (BDR) device. BDR is an all-in-one backup solution that combines on-site and off-site backups to provide businesses with complete data protection. A BDR device stores a local copy of the data while also replicating the data to an off-site location, such as a cloud backup service.

  2. Cloud Backups

Cloud backups refer to the process of storing data in a secure off-site location managed by a third-party provider. Cloud backups offer several advantages over local backups, including automated backups, easy scalability, and protection against natural disasters. In addition, cloud backups can be accessed from anywhere, making it easier for businesses to recover data in the event of a disaster.

  3. Hybrid Backups

Hybrid backups combine the benefits of local and cloud backups to provide a more comprehensive backup solution. With hybrid backups, data is first stored on a local device, such as a BDR, and then replicated to the cloud for added protection. This approach provides businesses with both the speed and convenience of local backups and the security and redundancy of cloud backups.

The 3-2-1 Rule for Backup

One best practice for data backup is the 3-2-1 rule. This rule states that businesses should have three copies of their data, stored on two different types of media, with one copy stored off-site. Following this rule ensures that businesses have a reliable backup solution that provides protection against various types of data loss.

Why Small Businesses Need to Backup Their Data

Small businesses often lack the resources of larger organizations, making them more vulnerable to data loss. According to the National Archives and Records Administration, 93% of companies that lost their data center for ten days or more due to a disaster filed for bankruptcy within one year of the disaster. In addition, small businesses are also a prime target for cyberattacks, with 43% of all cyber-attacks targeting small businesses.  Aside from working with a managed service provider, to better ensure your cybersecurity, it is good to stay educated about the secure locations for your data.

The cost of data loss can be significant, both in terms of financial losses and reputational damage. According to the Ponemon Institute’s Cost of Data Breach Study, the average cost of a data breach for small businesses is $3.86 million. However, with a reliable backup solution in place, small businesses can minimize the risk of data loss and ensure business continuity.

Why Single Flash Drives and Hard Drives are not Effective

While flash drives and hard drives may seem like a convenient and affordable solution for data backup, they are not ideal for several reasons. First, these devices have a limited lifespan and are prone to failure. Second, they are vulnerable to physical damage, theft, and loss, making them a risky choice for data backup. Finally, flash drives and hard drives are not scalable, meaning they cannot accommodate the growing data needs of a business.

Why Online Data Storage is Not a Backup Solution

Online data storage solutions such as OneDrive and Google Drive provide businesses with a convenient way to store and share files. However, these services are not designed to be a backup solution. Online storage services do not offer versioning, meaning they do not keep multiple versions of a file, which is crucial in the event of data corruption. In addition, online storage services do not offer automated backups or protection against natural disasters, making them an unreliable solution for data backup.


Data backup is an essential component of any small business’s IT strategy. With the right backup solution in place, businesses can protect their critical data from loss and ensure business continuity in the event of a disaster. The 3-2-1 rule provides a simple framework for creating a comprehensive backup strategy that includes both local and cloud backups. While local backups such as BDR offer fast recovery times and cost-effectiveness, cloud backups provide protection against natural disasters and cyber threats. By combining the benefits of both local and cloud backups, small businesses can create a hybrid backup solution that provides the best of both worlds. Remember, online storage services are not designed to be a backup solution and should not be relied upon to protect critical business data.

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