10 Startup Cybersecurity Best Practices Entrepreneurs Should Follow In 2025

In recent years, the number of cyberattacks targeted at small and medium-sized enterprises has been on the rise as more entrepreneurs leverage the opportunities presented by the digital economy. 

Cybercriminals are targeting smaller enterprises due to their lack of cybersecurity infrastructure and being ill-prepared to mitigate widespread risks. In total, around 47 percent of businesses suffered significant revenue losses due to a data breach-related incident in 2023. 

In most instances, smaller enterprises, including startup companies have fallen victim to a plethora of socially engineered attacks. Cybercriminals will use this tactic to influence or manipulate victims, sometimes employees, to gain control over their systems. These attacks usually come in the form of phishing, bating, and malware attacks, among others. 

Cybersecurity will become, and most likely remain an increasingly important aspect of upcoming business ventures. Entrepreneurs looking to leverage their influence in a hyper-digital environment will need to invest in the proper security infrastructure but extend training and resources to employees to ensure the safety of the business and customers. 

Cybersecurity Best Practices For 2025 

Looking ahead, entrepreneurs will need to consider the importance of investing in appropriate security features to protect valuable business assets and equip themselves with the knowledge to counter possible cyber threats.

Conduct a Risk Assessment 

A cybersecurity risk assessment will help entrepreneurs determine their security needs and what potential risks they may face as a business. By conducting a risk assessment, entrepreneurs may uncover certain security pitfalls, which in turn would allow them to introduce certain security features to plug this gap. 

In addition to conducting an initial cybersecurity risk assessment, it’s important to have continuous evaluation of these processes. While it’s important to have the necessary infrastructure in place, keeping these systems up to date will help ensure that relevant security measures are being implemented as new threats emerge or become more sophisticated to manage. 

Execute Rigorous Password Management Protocols 

Despite all the cyber risks, and increasing number of attacks targeted at companies and individuals, the majority of people, or around 75 percent of consumers are at risk of being hacked due to not following proper password best practices. 

A weak password is one of the most common ways hackers gain access to a device. Ensuring that all devices, digital accounts, and online profiles are equipped with a strong password will help protect against potential malicious activity. 

Not only this but routinely updating passwords is another important step to take. Making sure that all devices and accounts have their passwords updated at least every three to four months could help deter possible cyber threats. 

Develop a Cybersecurity Policy 

For any business, it’s important to have a thorough cybersecurity policy in place. Regardless of the size of the business, or the industry in which the startup may be operating, a cybersecurity policy is another form of frontline defense that will equip owners and employees with the knowledge and skills they need to identify possible threats. 

At the most basic level, a cybersecurity policy should cover key areas, including access control, data protection, and incident management protocols. In addition to this, areas such as employee responsibility, password protection, and infrastructure controls should also be covered in the policy. 

Though the policy itself is an important aspect of protecting a business’s digital assets, the delivery and language of this policy should be clearly communicated to all employees, and promote the continuous development of cybersecurity knowledge and skills. 

Choose a Reliable Third Party

Using a reliable cybersecurity third party will make a big difference in the long run. Entrepreneurs should seek to work with trusted cybersecurity experts who will provide them with the necessary tools, training, and resources to create a more robust digital security ecosystem. 

When looking for a third party, it’s important to look for a company that has industry-based experience. This should include enterprises that have worked with other well-known companies and provide a more thorough cybersecurity network. 

In addition to this, entrepreneurs should consider their business, the industry, and the various moving parts that may play a role in their cybersecurity infrastructure.

Invest in Proper Security Infrastructure

Industry experts suggest that a growing business should spend between 7% to 20% of its budget on Information Technology (IT), which should include investing in cybersecurity infrastructure to assist in reducing cyber risks. 

There are varying opinions on how much a company should spend, but in more recent years, data shows that U.S. companies have increased their cybersecurity spending by an average of 10% between 2021 and 2022. In 2023, cybersecurity budgets dictated around 24% of U.S. companies’ IT budgets. 

However, the amount a business will need to invest in property security infrastructure will vary depending on the company’s risk exposure. The potential cost of the infrastructure, employee training, and required resources will influence the final budget needed to invest in cybersecurity. 

Provide Routine Employee Training 

In any company, big or small, regardless of the industry, cybersecurity training for employees is considered an invaluable asset to the owner, the company, and customers. Having employees clued up about current cybersecurity threats, the dangers of these attacks, and how to identify any malicious activity will help create a stronger, and more diligent security network for the business. 

Most data breaches tend to occur due to a non-malicious human element. Around 68 percent of these types of attacks are caused by a person who falls victim to a socially engineered attack, such as clicking on spammy links or opening suspicious emails, according to the Verizon 2024 Data Breach Investigations Report. 

Investing in employees, entrepreneurs and business owners will help build more secure systems, and further develop cybersecurity policies that will help protect company assets, customers, and sensitive information. 

Employ Multi-Factor Authentication 

In addition to having strong passwords and proper password management practices, it’s important to ensure that all devices are secured with multi-factor authentication (MFA). Multi-factor authentication is a process that allows individuals to use additional security protocols to log in to a device or account. 

This security feature may require a person to verify their account activity via an email address linked to their profile or use biometric authentication to gain access. These security features are available on most newer digital devices and software applications and should remain activated at all times. 

Conduct System Updates

Completing a risk assessment is one thing, however, it’s important to update cybersecurity infrastructure every so often. The reason for this is that many of the current cyber threats that companies and individuals are facing may become more sophisticated in the coming years, leaving employees, customers, and sensitive information vulnerable. 

Updating security systems should form part of any business’s annual IT budget, and should play a key part in the process of securing digital assets. These activities are not only important for the business but can save companies a lot of money. 

The current global average cost of a data breach is now standing at $4.9 million. This is a 10% increase compared to 2023 and will continue to rise over the next couple of years as threats become more complex and widespread. 

For a small business, having to pay hackers can be a massive financial setback. Instead, investing in the proper security, and having the right protocols in place would ensure that they safeguard their digital assets while mitigating additional cyber and financial risks. 

Use Secure Cloud Systems 

Digital cloud technology enables businesses to be more efficient. These systems provide a secure channel through which employees can share information while consolidating business-related data in a single environment. 

Despite the advancements, most companies are still unaware of the dangers that unsecured cloud technology poses to their business and customers. Data shows that in 2023, roughly 39 percent of businesses experienced a data breach related to their cloud ecosystem, an increase from 35 percent in 2022. 

Most companies these days use the cloud ecosystem to move and transfer highly sensitive data. For instance, the same data has revealed that 75 percent of businesses claim that around 40 percent of their data stored in the cloud are considered to be sensitive data, an increase from 26% in 2022. 

Protecting a company’s cloud infrastructure should be more of a priority for business owners. These systems house valuable data and digital assets. Having these networks compromised will not only be a costly mistake but could impact the long-term authority and customer loyalty of a business. 

Promote a Culture of Security 

For a growing business, fostering a culture of security will help owners, customers, and employees stay up to date on current cybersecurity threats, while making cybersecurity a priority throughout the company. 

A security culture will help encourage employees to be more aware of suspicious online activity, including the ability to identify potential threats. These actions play a valuable role in the long-term development of the company, which will help celebrate employees and other stakeholders’ success in cybersecurity awareness, and aid in the prevention of potential threats. 

Building this type of culture takes time, and requires entrepreneurs to invest in the appropriate resources, tools, and training. Not only this, but it’s important to identify business-related needs and seek expert advice on resolving current risks and applying effective strategies to minimize any future threats. 

Protecting Your Business In 2025

Looking ahead, it’s clear that the cybersecurity landscape will experience an increased amount of demand as new cyber threats come into play, and more companies are moving much of their transactional and operational activity online. 

Creating an environment of safety and security will ensure that employers will educate their personnel on various cybersecurity risks, and how to identify potential threats. Furthermore, investing in the appropriate cybersecurity infrastructure will further bolster frontline protection of a company’s digital assets, keeping customers, employees, and sensitive data secure. 

There are multiple challenges in building a business, and the risk of cyber-attacks only adds another layer of complexity. For entrepreneurs, it’s important to ensure that their business is investing in the appropriate cybersecurity tools but has the right protocols in place to help them navigate any real-world threat. For businesses operating in the digital economy, prevention will be better than cure.