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The Hidden Costs of Downtime and How Fast Recovery Can Save Your Business

by | Dec 3, 2024 | News, Uncategorized

Downtime is one of the significant risks all businesses face in today’s digital-first economy, but it doesn’t have to be.

While data loss, network crash or a system outage might seem like a short-term inconvenience, system downtime could permanently damage your brand and a faulty hard drive could cause you 5 days of lost productivity to put right, making the long-term financial and reputational damage significant.

In this blog, you’ll discover the hidden costs of downtime and explain why investing in fast recovery solutions is crucial to protect your business from unforeseen disruptions.

Financial Impact of Downtime

When your systems go offline, your revenue doesn’t just pause – it drops off a cliff!

Did you know?

Research shows that UK businesses lose an average of £4,800 in revenue per minute during downtime(1). Yet, 31% of small to medium-sized businesses (SMBs) do not have a Disaster Recovery plan in place(2).

This includes lost sales and production to missed opportunities – not forgetting the damage to your customers’ trust in your business, but we’ll get to that later. All of which means the immediate financial implications of downtime are severe to say the least… and that’s just the start!

Long-Term Consequences: Bankruptcy and Business Closure

Downtime can also have devastating longevity of your business.

Did you know?

60% of UK SMBs that experience a cyberattack are forced to close within six months(3) as they lack the resources to recover from a prolonged outage.
Even businesses that manage to stay afloat may find themselves facing long-term financial strain as they deal with the hidden costs of rebuilding their systems and increased operating costs. This all adds up to a significant risk that could jeopardise the very survival of your business in the long run.

Reputational Damage and Customer Trust

In today’s highly competitive market, customer trust is critical.

Extended downtime will certainly tarnish the experience of customers looking to make purchases or access your services while systems are down, increasing customer churn while also harming your public reputation.

Did you know?

According to a report by the National Cyber Security Centre (NCSC), 75% of consumers say they would stop doing business with a company if they experience poor customer service(4).
Consider too that a slow, or incomplete recovery process, whether due to a data breach or IT failure, sends a clear message to your customers: your company wasn’t not prepared and doesn’t put enough value on the safety of their information. So, it’s not just about protecting your business systems, but ensuring you have a time efficient process to restore information if the need ever arises.

Fast Recovery: A Vital Investment

With so much at stake, having a fast and efficient recovery plan is critical!

The faster you get back online, the faster you can get back to business as usual, and while the initial cost of investing in Disaster Recovery solutions may seem steep, the price of inaction is far higher.

Did you know?

Data from the Digital Marketplace Security Controls (DMSC) shows that businesses with effective recovery plans save up to 40% in overall incident recovery costs(5).
Mooncomputers’ Disaster Recovery service helps businesses recover in as little as 4 hours, reducing downtime by up to 99% in the case of data loss, while also ensuring your peace of mind and minimal financial losses.

By conducting a free recovery audit, we can help you assess whether your current recovery strategy is adequate for the risks and financial implications you’d face.

Take Action: Get a Free Recovery Audit

Don’t wait for a disaster to hit to review your recovery plan or invest in one.

Adopting a reliable and efficient recovery solution today could save your business from costly downtime tomorrow.

Did you know?

Mooncomputers offers free recovery audits to SMBs so they can evaluate their current preparedness and put systems and processes in place to prevent them?
As we’ve discussed, the impact goes far beyond lost productivity. Direct financial losses, long-term partner relationships, reputational damage, and customer churn are all common effects. All of which makes fast recovery times not just an investment in IT, but an essential investment in your business’s survival.

Call 01604 879 330 to book your free recovery audit with Mooncomputers and protect your business from the hidden costs of downtime… before it’s too late!

Sources:
(1) ITIC UK Report on Downtime Costs
(2) gov.uk/government/statistics/cyber-security-breaches-survey-2023
(3) Cybersecurity Ventures: SMB Cyberattack Statistics
(4) NCSC Report on Consumer Trust
(5) DMSC UK Digital Marketplace Report