While nearly all businesses rely on the Web to some extent, a restaurant or brick-and-mortar retail store isn’t going to have the same kind of cybersecurity risks as a startup whose operations are entirely online. In most cases, tech startups serve the B2B market, which means other companies are depending on yours to keep things running smoothly.
“Because tech businesses provide a product or service to help other business owners perform their operations, they are open to liabilities of omission, errors and other exposures,” said Eunice Lim, sales director for Travelers insurance company. “To overcome any possible losses, you need to make sure you understand those exposures first.”
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Having a comprehensive firewall and antivirus software system in place will mitigate many cyberrisks, but these will only get you so far. Lim recommended training your employees in the proper protocol for handling sensitive customer and credit card information, and always making sure company data is accessed only through a secure, private Internet connection. Adding a cyber-insurance policy to your insurance program can provide protection should a data breach occur.
While tech startups may face steeper competition than startups in other industries do, as well as unique challenges, your level of dedication to your new business will ultimately determine your chances of success. “The odds of any individual building a market-leading company from scratch is minute,” said Jeremy Colless, founder of Australian equity crowdfunding platform VentureCrowd. “Being delusional will not get you there. Skill, persistence, and a bit of time and luck are needed.”