Small business owners wear many hats, often including that of an IT director.
With limited time and resources to devote to technology, busy entrepreneurs can often make technology errors that have devastating effects on their business finances, reputation, and productivity — though free resources like SCORE, which offers mentoring and workshops for small business owners, can help.
Fortunately, there are also steps — including the right tech investments — that a small business can take to avoid common pitfalls and grow their business. Here’s a closer look at the four most common small business tech mistakes entrepreneurs make and how to avoid them.
1. Neglecting cybersecurity measures
Cyberattacks are becoming more sophisticated by the day, and cybercriminals aren’t just targeting big corporations.
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). Even more staggering, the number of businesses that lost $500,000 or more due to these attacks more than doubled in 2024 compared to 2023.
To protect your business, follow these cybersecurity best practices:
Use secure passwords. Require employees to use a secure password management tool to create, store, and autofill strong passwords.Safeguard sensitive data. Encrypt key data, such as employees’ personal information or customers’ payment card information, to restrict access to only those who need it.Leverage AI-powered security features. Modern AI PCs like the Lenovo ThinkPad X1 Carbon or ThinkBook series — powered by Intel® Core™ Ultra Processors — offer AI-enhanced security features such as threat detection, biometric security, and adaptive performance that help safeguard your business. Unlock new AI experiences with Intel® Core™ Ultra Processors — AI PCs built for business.Use multi-factor authentication. Adding an extra security layer with multi-factor authentication strengthens protection.
2. Using outdated hardware or software
Outdated technology can slow your business down and compromise security. Stay competitive by keeping your devices and other business technology updated — ideally with modern, business-grade solutions from trusted partners like Lenovo.
Use these tips to stay on top of having the right technology for your business:
Review your hardware and software regularly. Assess functionality and compatibility, and aim to replace outdated devices every three to five years. Lenovo Pro members get access to exclusive deals on Lenovo’s latest business-grade devices — helping you stay up to date without breaking your budget.Consider the total cost of ownership. Weigh costs, maintenance, and ROI before upgrading your equipment.Switch to cloud-based applications. Cloud solutions like Microsoft 365 and Google Workspace ensure you always have the latest, most secure versions of the software you use daily.
3. Choosing the wrong technology
Whereas some business owners cling to outdated tools, others invest in new technology without considering how it fits into their workflow.
Avoid falling into this common pitfall by ensuring all your tech spending aligns with business goals. Use the following strategies to help prioritize technology investments that drive productivity and revenue:
Conduct a technology audit. Identify inefficiencies and gaps with employee feedback.Test before buying. Use free trials and demos before committing to software.Focus on scalability. Choose tools that will grow with your business — ones that empower productivity and creativity as your needs evolve. You can work, create, and boost productivity all with the ThinkPad X1 Carbon.Ensure compatibility. Pick solutions that integrate seamlessly with existing systems.
4. Not backing up data or having a disaster recovery plan
Cyberattacks, hardware failures, and disasters can cripple businesses that don’t regularly back up their data or have infrastructure in place to recover lost data.
Don’t take the risk. Follow these steps to 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.Test backups. Regularly verify that backup data can be restored.
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This post was created by Lenovo and SCORE with Insider Studios.
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