4 Common Tech Mistakes Small Business Owners Make And How To Avoid Them

As a small business owner, you wear many hats—often including that of IT director. With limited time and resources to devote to technology, it’s easy for busy entrepreneurs to make technology errors that can have devastating effects on their business finances, reputation, and productivity.

Fortunately, following a few key small business IT tips can help you avoid this fate. Here’s a closer look at the four most common small business tech mistakes entrepreneurs make and how to avoid them.

Cyberattacks are becoming more sophisticated by the day—and if you think cybercriminals only target big corporations, think again. Last year, 26% of small businesses experienced a security breach, 16% experienced a data breach, and 39% experienced both, according to the Identity Theft Resource Center (ITRC) . What’s more, the number of businesses that lost $500,000 or more due to these attacks more than doubled in 2024 compared to 2023.

Solution: Protect your business by following these cybersecurity best practices .

• Use secure passwords. Require employees to use a secure password management tool. These apps can create, store, and autofill strong passwords , making security easier.
• Safeguard sensitive data. Encrypt key data like employees’ personal information or customers’ payment card information. Restrict access to those who need it.
• Leverage AI-Powered Security Features. AI-enhanced security features in modern AI PCs offer threat detection, biometric security, and adaptive performance.
• Use multi-factor authentication. Adding an extra security layer with multi-factor authentication strengthens protection. Popular options include Google Authenticator, Okta, and Microsoft 365.
• Install antivirus software. Solutions like Bitdefender, Microsoft Defender, or Norton Small Business help protect against spyware, ransomware, and more.
• Secure your network. Use a firewall, update Wi-Fi passwords regularly, and set up a separate guest network for customers.
• Verify third-party security. Ensure vendors and partners meet cybersecurity requirements before granting access to your data or network.

Outdated technology can slow your business down and compromise security. Staying updated keeps you competitive.

Solution: Regularly update your hardware and software.

• Regularly review your hardware and software. Assess functionality and compatibility. Replace outdated devices every three to five years.
• Consider total cost of ownership. Weigh costs, maintenance, and ROI before upgrading.
• Switch to cloud-based applications. Cloud solutions like Microsoft 365 and Google Workspace ensure you always have the latest, most secure versions.

Some business owners cling to outdated tools, while others invest in new technology without considering its fit.

Solution: Ensure tech spending aligns with business goals.

• Conduct a technology audit. Identify inefficiencies and gaps with employee feedback.
• Weigh costs and benefits. Prioritize technology investments that drive productivity and revenue.
• Test before buying. Use free trials and demos before committing to software.
• Focus on scalability. Choose tools that grow with your business.
• Ensure compatibility. Pick solutions that integrate seamlessly with existing systems.

Cyberattacks, hardware failures, and disasters can cripple businesses without a backup and recovery plan.

Solution: Implement a strong data backup and disaster recovery plan.

• Identify critical data. Determine what’s essential for business continuity.
• Automate backups. Use cloud solutions like Dropbox, OneDrive, or Google Workspace for scheduled backups.
• Follow the 3-2-1 backup rule. Keep three copies of data, using two different storage media, with one stored off-site.
• Digitize paper records. Scan and back up important physical documents.
• Encrypt sensitive data. Use encryption for added security.
• Test backups. Regularly verify that backup data can be restored.

This article originally appeared on SCORE.