Is Your Business Spending Enough on Cybersecurity? | TCI
Is Your Business Spending Enough on Cybersecurity? Why Investing More Matters
Cybersecurity isn’t something that should be overlooked or undermined; it’s a business survival issue. For small and midsize businesses (SMBs), the financial and reputational damage from a single cyberattack can be devastating. Yet, many companies are still underinvesting in cybersecurity, leaving themselves vulnerable to growing threats.
According to BlackFog, 61% of SMBs are more concerned about a cyberattack putting them out of business than any other type of threat. That fear is justified. Research from IBM shows the average cost of a data breach reached $4.45 million in 2023, a 15% increase over the past three years. While that number is skewed by large enterprises, even smaller-scale breaches can cost SMBs hundreds of thousands of dollars, enough to sink a business that hasn’t planned ahead.
So, the question is simple: are you spending enough on cybersecurity?
Why Cybersecurity Spending Is Often Too Low
Despite rising threats, many SMBs continue to allocate limited budgets to IT security. There are a few reasons why:
“It won’t happen to us” mindset – Business leaders often believe they’re too small to be targeted. In reality, nearly half of cyberattacks (43%) target SMBs because they typically have weaker defenses.
Budget constraints – Tight budgets lead companies to view cybersecurity as a “nice to have” rather than a necessity. Yet, the cost of prevention is always lower than the cost of recovery.
Lack of awareness – Many decision-makers simply don’t know what robust cybersecurity requires: ongoing monitoring, backups, employee training, compliance management, and more.
Reactive vs. proactive – Businesses frequently only increase cybersecurity spending after an incident, which is too late to prevent damage.
The True Cost of Underinvesting in Cybersecurity
When evaluating whether your business is spending enough, it’s important to understand what’s at stake. The costs of a cyberattack go far beyond immediate financial losses:
Financial loss – From ransom payments to system recovery and downtime, attacks can bleed a company dry. 60% of SMBs shut down within six months of a cyberattack.
Lost productivity – A ransomware attack can freeze your operations for days or even weeks. The average downtime after an attack is 21 days.
Legal and compliance penalties – Mishandling sensitive data, like customer or healthcare information, can result in heavy fines under laws like HIPAA, PCI-DSS, or GDPR.
Reputation damage – Customers lose trust quickly if they believe your company can’t protect their data. A Ponemon Institute report found that 65% of consumers lose trust in a business after a data breach.
Higher insurance premiums – Cyber insurance policies are becoming stricter and more expensive. Weak cybersecurity practices often result in denied claims or higher rates.
When you add these together, it becomes clear: the cost of a breach is far higher than the cost of prevention.
How Much Should Businesses Spend on Cybersecurity?
There isn’t a one-size-fits-all number, but there are guidelines. Industry experts recommend businesses allocate 7–10% of their overall IT budget to cybersecurity. Some regulated industries, such as healthcare or finance, may need to spend even more due to compliance requirements.
The average SMB spends less than $5,000 per year on cybersecurity, an amount often insufficient to cover even basic protections like advanced firewalls, endpoint detection, and employee training.
The reality is this: if you’re not investing in ongoing monitoring, backups, and employee awareness training, you’re not spending enough.
Why Cybersecurity Spending Should Increase
Cyber threats are evolving daily. Hackers no longer rely only on brute force; they exploit human error, social engineering, and unpatched systems. Investing more in cybersecurity ensures your defenses keep up with these advancements.
Here’s why increasing your cybersecurity budget is essential:
1. The Threat Landscape Is Growing
Ransomware attacks increased by +73% from 2022 to 2023 (SANS).
Phishing remains the top attack vector, with 94% of organizations experiencing phishing attempts in 2023 (InfoSecurity) .
Without proper investment, your business is essentially playing catch-up with cybercriminals.
2. Employee Training Is Non-Negotiable
No firewall can stop an employee from clicking on a malicious link. Ongoing security training is critical, but it requires a budget. Businesses with strong security awareness programs see up to a 70% reduction in phishing susceptibility.
3. Compliance and Regulations Demand More
From HIPAA to GDPR, compliance isn’t optional. Regulators are cracking down on data mishandling, and compliance-related cybersecurity measures often require additional resources.
4. Cyber Insurance Is Getting Tougher
Insurance providers are raising standards. To even qualify for a policy, many businesses must prove they’ve implemented MFA, endpoint protection, and incident response plans. That means more investment is necessary just to maintain coverage.
What an Adequate Cybersecurity Investment Covers
If you’re unsure whether your current cybersecurity budget is sufficient, ask yourself if it covers these essentials:
24/7 Monitoring & Threat Detection – Cybercriminals don’t operate on a 9–5 schedule, and neither should your defenses.
Regular Software Patching & Updates – Vulnerabilities must be closed quickly before they’re exploited.
Secure Backups & Disaster Recovery – Following the 3-2-1 rule (3 copies, 2 formats, 1 offsite) ensures data isn’t lost.
Employee Awareness Training – Humans are the #1 attack vector, so training is as important as firewalls.
Multi-Factor Authentication (MFA) – Adds an extra layer of protection beyond passwords.
Firewall & Network Security – Keeps bad actors from breaching your systems in the first place.
Incident Response Plan – Prepares your business to act quickly when (not if) a cyber incident occurs.
If your cybersecurity budget doesn’t account for these, you’re leaving dangerous gaps in your defense.
Why Partnering with an MSP Maximizes Your Cybersecurity Investment
For many SMBs, the challenge isn’t just the size of the budget; it’s how effectively the money is spent. That’s where a Managed Service Provider (MSP) like TCI makes the difference.
An MSP ensures that every dollar invested in cybersecurity goes toward:
Proactive monitoring instead of reactive fixes.
Automated backups instead of risky manual processes.
Professional-grade firewalls and encryption instead of outdated software.
Ongoing training that strengthens employees against social engineering.
With the right partner, you don’t have to spend like an enterprise to get enterprise-level protection.
The Bottom Line: Spend Now, Save Later
Cybersecurity isn’t a cost center; it’s an investment in the survival of your business. The 61% of SMBs worried about going out of business after a cyberattack aren’t wrong to be concerned. But the solution isn’t hope; it’s preparedness.
By increasing your cybersecurity budget and partnering with the right MSP, you’re not just buying protection. You’re buying peace of mind, business continuity, and customer trust.
Take the Next Step with TCI
At TCI, we understand the challenges SMBs face when balancing budget and security. That’s why we deliver customized, scalable IT solutions designed to fit your business needs and your budget.
✅ 24/7 monitoring and proactive defense
✅ Employee awareness training
✅ Secure backups and disaster recovery
✅ Network firewalls, encryption, and MFA
Don’t wait until a breach forces you to spend more than you planned.
📩 Contact TCI today to schedule your free Cybersecurity Assessment and learn where your business stands.
