Cybersecurity That Boosts Revenue and Minimizes Losses

Many businesses view cybersecurity as an expenditure that has unclear return on investment (ROI). Were prior investments effective, or was the company simply not targeted very much? It can be hard to tell. When quantified and done right, cybersecurity can build trust and open up new sources of revenue. By minimizing data breaches and downtime while focusing on compliance, companies can avoid fines, penalties, and lawsuits. This blog post will cover strategies your business can use to maximize the benefits that come from investing in strong cybersecurity. Let's get into it.

The Cost of Weak Cybersecurity

Cyberattacks hit the business wallet hard, and not just the company systems. IBM’s 2024 Cost of a Data Breach Report says the average breach costs $4.88 million, up 10% from last year. This covers fixing issues, legal fees, fines, and losing customers or trust. Small and medium-sized businesses (SMBs) suffer most, with 60% closing within six months of a major attack, per the U.S. National Cybersecurity Alliance.

Fines add to the trouble. Laws and regulations like GDPR, CCPA, and HIPAA bring big penalties for mistakes. GDPR fines can hit €20 million or 4% of yearly revenue, whichever is larger. Meta faced a €1.2 billion GDPR fine in 2023 for data transfer issues. Your business is likely much smaller, but even a smaller fine can be tough to deal with. Lawsuits from customers or partners can lead to costly settlements. Losing customers due to broken trust or stopped operations often hurts even more. A 2022 PwC study found 70% of people would stop buying from a company after a breach. Weak cybersecurity leads to financial trouble. Strong cybersecurity can make money and prevent those losses.

Cybersecurity as a Competitive Advantage

Top businesses use cybersecurity to stand out, keep customers loyal, and create new ways to earn. Here’s how:

Customers are nervous about their data with breaches making headlines constantly. A 2023 Cisco survey found 80% of customers prioritize data privacy when choosing where to buy, and 90% trust companies with clear cybersecurity practices more. As a cybersecurity consultant, I’ve seen firsthand that businesses compare the security of different products and services. This often tips the scales when they're ready to buy.

By focusing on cybersecurity, you build trust, encourage loyalty, and stand out in crowded markets, especially in data-sensitive industries like healthcare, finance, or e-commerce. Investing in robust security, like strong encryption and clear data policies, makes your business a reliable choice.

A 2024 Forrester report shows 65% of B2B buyers pick vendors with solid cybersecurity, even if they cost a bit more. This trust translates directly to revenue growth. Strong cybersecurity gives you a competitive edge. Imagine being a small payment platform. The company uses risk assessments and gap analyses to stay current with the Payment Card Industry Data Security Standard (PCI DSS). Some newer competitors, however, cut corners, leaving vulnerabilities exposed. When the credit card companies, partners, and customers ask questions, it's not long before red flags start popping up. This is a huge risk, and it's unnecessary.

Creating New Revenue Streams

We see it all the time in the field and in posts on sites like LinkedIn. A startup puts in a ton of effort to build a great platform. Buzz is increasing. A bank reaches out and is actually interested, even though the startup is very small and only two years old. Things seem like they're on track and a deal is close, then the bank asks about a SOC 2 report. Once this happens a couple times and real revenue is missed, this often leads the startup to pursue SOC 2. If SOC 2 pays for itself through new revenue streams, it'd be silly not to consider it. It's a business decision, like anything else.

Streamlining Compliance to Win Business

Being compliant with relevant cybersecurity laws, regulations, and standards will keep you well-positioned. This is especially true in regulated sectors like government or healthcare. Using automation and strong security cuts compliance costs and makes you a preferred vendor, unlocking valuable contracts.

Be Proactive to Reduce Losses

In addition to making you money, good cybersecurity also helps minimize losses. Using risk assessments and gap analyses lowers the risk of fines, lawsuits, and lost business, because you'll be able to show due diligence. Here’s how to protect your profits:

Avoiding Fines

Compliance is critical. Risk assessments identify threats like unpatched software, while gap analyses pinpoint compliance shortfalls, such as missing data encryption. A healthcare provider with HIPAA-compliant systems avoids penalties averaging $50,000 per violation, with no cap for major errors. Your business may be smaller than a giant like T-Mobile, but even one fine might strain your budget.

Mitigating Lawsuit Risks

Breaches often spark lawsuits from customers, partners, or shareholders, whether they're deserved or not. A 2023 class-action suit against T-Mobile, after a breach exposed 47 million customers’ data, cost $350 million to settle. Your business might face smaller lawsuits, but they are still a drain on resources. Risk assessments catch issues like weak passwords, and gap analyses ensure legal requirements are met, reducing breach risks. Cyber insurance helps, but to get a policy, the insurance company will typically verify your security controls.

Keeping Business Running

Ransomware can shut down operations, costing revenue. The 2021 Colonial Pipeline attack stopped operations for days, losing millions, and keeping gas pumps backed up. It was all because of a compromised VPN password. A thorough risk assessment highlights ransomware risks, and gap analyses ensure backup systems meet compliance needs, keeping operations running during an attack and protecting revenue.

Protecting Your Reputation

A damaged reputation can cost more than fines. Customers have lots of options in pretty much every industry. After a breach, customers may leave for competitors, and rebuilding trust takes years. Proactive cybersecurity, guided by risk assessments and gap analyses, reduces this risk. Companies that disclose breaches fast and show strong fixes, like Microsoft did after the 2020 SolarWinds attack, keep customer trust intact.

Practical Steps to Make Cybersecurity Profitable

Turning cybersecurity into a strength takes a clear plan. Here’s how to start:

Conduct Risk Assessments and Gap Analyses

Start with a risk assessment to find threats like phishing, malware, or insider risks, using frameworks like the NIST Cybersecurity Framework (CSF). Then run a gap analysis to see how your company measures up to the relevant compliance standards. Together, this creates a roadmap to fix weaknesses and balance protection with profit.

Invest in Scalable Security

A good combination of skilled people and the right tools goes a long way. Pick technologies that grow with you, like cloud-based platforms, AI-driven threat detection, and automated compliance tools. Make sure to build in the human assurance checks from time to time so nothing gets missed.

Train Employees Often

Human error causes breaches, with phishing behind 36% of incidents in 2023, per Verizon’s Data Breach Investigations Report. Regular training on spotting threats and following best practices prevents mistakes. Fun, gamified training keeps employees engaged. Training is best when it highlights the issues that are actually targeting your business. Some frameworks call for annual training, but it's best to do it three or four times a year since cyber threats are constantly evolving.

Third-party Validation

ISO 27001, SOC 2, and CMMC show you’re serious about security. If your typical customer is asking about one or more of these, it's good to take that into account. Once you've gone through any of these processes, it's smart to proudly display the badge on your website, proposals, and marketing materials so potential customers know about them without having to inquire.

Talk Up Your Security

Transparency wins trust. Share a privacy policy, post security whitepapers, and consider creating a Trust Center on your website to show off your cybersecurity. Salesforce’s Trust Center highlights its security practices, reassuring customers and driving sales.

Partner with Experts

Smaller businesses may not have the internal skillsets to properly deal with cybersecurity and compliance, so it's common to team up with a consultant or managed security providers. These companies often have flexible packages so you can find what you need at a reasonable rate. This adds credibility, since customers trust vendors backed by strong security firms.

Conclusion

When done right, cybersecurity can help a company make money, build trust, and avoid losses. At Yastis, we’ve spent six years helping startups and SMBs navigate these challenges. We conduct risk assessments to identify risks and gap analyses to fix compliance gaps. Once we know where things stand, we put a custom plan in place to mitigate findings, so our clients can benefit from strong cybersecurity. We offer flexible plans and get to work quickly. If this sounds right for you and your company, contact us today so we can discuss your requirements.