In today’s digital world, it is easier than ever to kick off an IT startup. However, there are also plenty of hazards for entrepreneurs. With about 60 percent of major US firms have been hacked in 2019 alone, the threat of cybercrime is always present. Additional threats continue to add up, so it’s important to be prepared as an entrepreneur.
As an IT startup, you will need to remain even more vigilant about cybersecurity than most other industries. Since you will presumably have publicly facing digital assets, there is no doubt that someone will try to hack you. On average, companies paid $3.92 million per data breach in 2019. These precautions should get you started, although it’s advisable to have a cybersecurity consultant on your payroll. First, ensure you’re not storing or transmitting anything sensitive left unencrypted. Next, after you’ve chosen a cloud provider, make a “Virtual Private Cloud” that ensures that only your company may access sensitive resources. Ensure everyone understands security plans and have a concrete set of rules posted for reference.
Managing insurance for a new IT startup is tricky. You’ll need a Business Owner’s Policy (BOP) for starters as “general” insurance. In addition to the standard insurance information, IT insurance will require a bit more info. You’ll also need Data Breach Insurance. You should obtain this before storing any customer information. This insurance will pay to investigate attacks, legal fees, and ensure all legal notification requirements are met. Errors and Omissions Insurance is lesser-known but necessary. This will protect your growing startup from lawsuits over services that were promised yet not provided or improperly provided.
If you’re like most entrepreneurs, you’re likely too busy to worry about someone stealing your project. Unfortunately, idea theft is prevalent in the tech industry because it’s quite easy to do. You’ll need legal counsel to guide you through how to patent and copyright your idea, preferably before any employees are brought on-board. Even with that, you need to be very careful about who you hire. Remember, you need legal protection, but the law isn’t always enough to shield you from copyright theft.
Being an entrepreneur is stressful, but it’s certainly an adventure. Don’t get scared off of building your dream because of the red tape! Just do your best to protect your technology, utilize insurance services, and ensure your legal papers are filed properly.
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