Technology has created new ways of working and accomplishing tasks. It has wormed its way into every industry so much so, that without it, many of us wouldn’t be able to complete our daily tasks. It has also changed the way the average customer goes about choosing a vendor. That is why you need to understand downtime and the risk to your business.
If your technology fails and you have downtime, what could you be risking? Here are 10 things you need to know:
- Downtime can happen to you
Just like other bad things, many people like to believe it just won’t happen to them. This horror story is something you read about on LinkedIn, not something that will impact your business. But it can happen to you.
- Downtime can happen different ways
Tech failures can come about in a number of different ways. You could contract a virus that infects your entire server, your server connection could fail and leave your company with access to the internet, or your area could experience an outage due to a storm.
- Downtime can hurt your customer image
Customers expect to have access to your site 24/7. Gone are the days when answering calls between 9-5 was enough. If customers want to get information on your company, they expect to be able to do it right then and there.
- Downtime can hurt your trustworthiness
If your customers or clients cannot access the services you pay for, they may lose faith in your ability to protect their information. Would you put your credit card information into just any site? If your website is down, even if it is not your fault, the customers will attribute the fault to you.
- Downtime can hurt your online reputation
People can be ruthless online. If someone has a bad experience with your company due to you having downtime, it can easily be broadcasted across several platforms. Yelp, Facebook, and the online Yellow Pages are just a couple of the ways a disgruntled customer could get the word out.
- Downtime can give the competition a leg up
When customers have to work harder to get to your information, your competition is who they turn to. It’s easy for them to do so and if your competition is making it more convenient, they will win over your customers.
- Downtime can kill employee efficiency
When your employees don’t have the ability to do their basic job function, it causes more than frustration. They are derailed and it can be hard for them to get back on track and make up for lost time.
- Downtime can hurt your bottom line
Having downtime costs you money. When you look at all of these individual factors, they contribute to lost sales or lost productivity. If you have a significant amount of downtime, your small business could pay the ultimate price. The leading statistic states that 25% of companies that suffer loss or downtime go under within 3 years.
There are ways to calculate what the potential downtime could cost your company. Looking at how much revenue you would lose and how many employees could be affected gives you a window into what you stand to lose. Know the numbers so you can prepare.
- Downtime can be successfully managed
Now that you have calculated the cost of downtime for your individual business, you can prepare for it. If you are prepared for recovering your data and systems, your recovery will come about much sooner. Have a plan in place and your losses can go from catastrophic to manageable.
