February 25, 2021 6 min read
Opinions expressed by Entrepreneur contributors are their own.
We’re living in an information age where data is the new currency. As the world explores new digital frontiers, the importance of data security is growing exponentially. Digital transformation is helping to make the world a better place, but cyberattacks are an unfortunate part of this reality. These days, the success of any modern business, large or small, depends on the effectiveness of the data security systems it has in place.
The need for robust data security has created gigantic and ever-expanding opportunities for those who can offer much-needed protection against possible cyberattacks.
Why is it a good time to start a cybersecurity business?
Cyber-risk is on the rise, and every possible data point suggests the trend is likely to continue in the future, given the increasing need for multilayered data-sharing across all business types and verticals.
According to Cybersecurity Ventures estimates, the cost of global cybercrime is expected to grow 15% annually over the next five years and reach $10.5 trillion annually by 2025, up from $3 trillion in 2015.
Governments around the world are passing legislation to ensure maximum protection and, in most cases, the liability to protect data remains with the owner. Failure to comply with data-protection rules can result in fines for negligence or theft. European Union administrations have tightened legislation regarding data processing and imposed fines of up to 4% of annual turnover, with a ceiling of 20 million euros.
However you look at it – whether it’s for a network, internet, cloud, web gateway, or end-point security – cybersecurity compliance is an absolute must for every enterprise. It’s not just to avoid penalties. You need to make your system cyber-attack proof to earn and retain the trust of clients and customers. The arrival of disruptive technologies like artificial intelligence (AI), machine learning (ML), the internet of things (IoT), blockchain, and others have opened vast opportunities for cybersecurity warriors.
So, be ready to venture early and start a cybersecurity company to tap the potential of the market.
The basics of starting a cybersecurity company
From the above, we can infer the great benefits that a cybersecurity service will provide when implemented in any organization whose computer systems are networked.
Hence the convenience of setting up your own company in the area of cybersecurity, which can be very lucrative if it’s established with the vision of providing reliably high-quality service.
Many organizations simply don’t have the resources to keep up with the threats themselves and will be impressed by an outside service provider who can discuss potential dangers with them and how to monitor them from a security perspective.
Cybersecurity companies provide all kinds of services related to the development and implementation of computer security and data protection systems. They analyze the needs of each client to provide them with the software, hardware, and additional services necessary to protect themselves from failures caused by computer attacks or misuse of their own networks.
Some general factors to take into account for an undertaking of this type of business are the following:
● Find a strategic location. It’s best to establish this type of business in a city that has a large business community that will supply a greater number of potential clients.
● Keep up to date on all the IT tools and solutions applicable to the business security and data-protection environment. This is essential to offer good advice to clients and provide customized solutions.
● Establish contacts with hardware and software providers specialized in this industry.
● Hire specialized technical personnel to carry out all the necessary adaptations.
● Comply with the legal requirements for the registration and operation of a cybersecurity company.
Structure and management
A company of this type will mainly need three types of employees:
1. Technical: Engineers and technicians specialized in the installation and maintenance of this type of computer management software and systems.
2. Marketing: People responsible for the direct relationship with clients and the monitoring of each project.
3. Administrative: These people are in charge of accounting, collection management, and other matters in this area.
As soon as you start a business, it’s essential to create a network and obtain the names of different companies. Networking is more than canvassing potential customers. It also means connecting with professionals in the target industry and keeping abreast of what’s going on in that area. IT security, as professionals know, is constantly evolving in terms of possible threats; therefore, keeping on top of these developments is essential for any startup that hopes to attract customers and persuade them that they can count on it. A computer security startup has every interest in joining its local group of companies and any other association of sector professionals.
Who will be your customers?
These services are requested both by public administration companies, large commercial companies, and to a lesser extent by SMEs. The important thing is to make yourself known through the internet and other marketing means.
When starting to offer security, many companies immerse themselves in the technology. This is a common mistake.
To understand why, let’s use an analogy. Think about the security of your home: Would you spend hundreds of thousands of dollars to shield the gate and the main entrance door with cameras and alarms if the most valuable thing is in a room accessible from the backyard and whose windows don’t have locks?
It’s the same in information security. The focus must start and end with your client’s business needs. It’s not enough to buy fancy and expensive computer tools and software. If the security technology doesn’t support your client’s business objectives, it’s simply an expense.