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How Improving Your Business’ Digital Security Can Increase Its Value


The topic of cybercrime is becoming more important to individuals, businesses, and governments nearly every day. So much of our lives are stored online that the possibility of someone obtaining our information and using it against us strikes fear in our hearts. This has caused some governments to take surprising steps towards limiting what information goes online, hoping that stopping the information from being generated will be enough to mitigate the consequences of cybercrime.

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But the internet is just too important for this strategy to work long-term—it makes things too easy to be ignored. Luckily, though, you can take steps to make your business less susceptible to cybercrime, and in doing so, you will be increasing its value, which will make you more attractive to investors who can help you grow.

Let’s take a look at how improving digital security can positively impact the value of your business.


Less risk

One of the keys to building a successful business is to minimize risk. While it is important to take chances, you want to be able to expect reasonable success when you venture into new areas.

By improving your business’ digital security, you are helping to make this much easier. Say you want to expand into a new market, or you begin offering a new service through your website. Without proper cybersecurity, you may run into issues that make these efforts far riskier. Work now to instill good practices and you will be reducing risk down the road. And since good risk management is something investors look for when determining the value of a business, you can expect good digital security to have a positive impact on your company’s valuation.

More profitable

Currently, there is no empirical link between digital security and profitability—just because you have good cybersecurity does not guarantee you to make money—but there is certainly a theoretical one. When building a brand, one of the most important things you need to do is to build trust with your customers. They want to know that when they give you their money and their information, you are going to protect it.

In this sense, cybersecurity measures can almost be seen as a form of marketing. It represents a significant opportunity to leverage good business practices into brand management. And this can have a tremendous impact on the value of your business. Having a brand that people trust and believe in is a great addition to your business. It helps you stand out from the competition and will make your business far more attractive to investors looking for something that has potential to grow.

Management practices

For a company to adopt good digital security practices, management needs to make it a priority. These kinds of things do not just happen on their own. Instead, they are the result of a concerted and dedicated effort on the part of managers and employees.

When investors are looking at a business and determining its value, they are also going to look how it is run. A company that is able to instill this kind of change is clearly run well, and this is something investors look for. While they might not leave everything intact if and when they take over, it is good to know they would not need to do a complete overhaul. Being able to demonstrate sound management practices is a great way to boost the value of your company, and improving digital security measures helps you do this.

Company culture

Along these same lines, company culture is one of those intangible things that can have a tremendous impact on your business. In fact, Airbnb CEO Brian Chesky considers culture to be one of the most important things for businesses to consider as they grow.

Strong culture makes the company more valuable. There is more employee buy-in and there is a stronger sense of purpose, encouraging people to go above and beyond to make the company better.

Putting strong digital security measures into place helps show a quality company culture, one that is dedicated to building trust with customers and to taking the work they do seriously. This is hard to create or instill, and when investors begin to look at your company, they will view you much more favorably if they see this kind of attitude.

As you can see, digital security is about far more than just protecting passwords and customer information. It has both literal and symbolic significance for the value of your company. By taking time to invest in good practices now, you will be increasing the value of your business, which will make it much more appealing to investors both now and in the future.

About the Author: Jock is the founder of Digital Exits, a company that specializes in the buying/selling and appraisal of online businesses. He has spent many years working in digital marketing and consulting. Now, he uses his experience to help other entrepreneurs find success online.

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