The world is facing an unprecedented crisis today, with the coronavirus ravaging the health of people and businesses across the globe. While the impact on public health is immense, businesses too are hanging in uncertainty due to the looming economic slowdown ahead. The startup market, in particular, is in a state of apprehension. Like any other domain, investors and entrepreneurs in the cybersecurity industry are also questioning their next moves. Would it be sensible to implement their ideas right now? Does investment in a new setup make a feasible decision during such hard economic times? Well, the answer is yes, specifically when it comes to cybersecurity startups. The industry has huge potential during the current times because this is one solution that is likely to be in high demand in the coming time. Let us study the prospects of cybersecurity investment at present and in the near future.
The growing demand for cybersecurity solutions in the COVID-19 era
Cyber threats were already a major issue for businesses, but there has been a surge in cyberattacks since the virus outbreak. Unfortunately, these attacks have not just increased in volume and frequency but sophistication as well. There are reports of ransomware, account takeovers, business email compromise, and the use of compromised credentials. Hackers are breaching security to get private and organizational data with the intention of committing fraud. The fact that businesses are so engaged in moving to the remote model is making things easier for the attackers and they are taking advantage of the situation. An increase in online selling is another concern for businesses because confidential customer data lies exposed to hacking attacks. While companies are obligated to keep the data secure, their reputation also goes at stake if there is a breach or loss of customer data.
The situation may get even more disconcerting for organizations over the coming months because the resolution of the pandemic does not seem to be anywhere around yet. Hence, it becomes obvious that businesses will have to embrace modern cybersecurity solutions to keep their data and networks safe from attacks. Moreover, they will also have to invest in cybersecurity infrastructure to protect the privacy of customers, employees, and suppliers. Coming up with a startup that addresses these needs is definitely going to be a smart move for entrepreneurs and investors alike. So if you are still in two minds about setting up a cybersecurity company, there couldn’t be a better time for doing it!
But what about the economy!
While starting a new business in this domain makes sense right now, the biggest concern for investors and entrepreneurs is surely the current economic dynamics. Despite the downturn, things are looking up for this domain in the present circumstances. If you check Option3ventures.com, you can get an insight into the cybersecurity investment frontier. Experts regard this phase as an opportunity for starting a cybersecurity company or continue investing in an existing start-up because these are the ones capable of delivering agile solutions. While more established companies are distracted right now, it would be unrealistic to expect them to innovate at the speed of a smaller, more nimble and focused teams. The only thing that new ventures need to be careful about is having ample capital and a proven business model. With this kind of a start, there is an assurance of success which investors always look for.
How to get started?
Now that it is clear that investing in a cybersecurity startup during the global crisis is a wise move, everything boils down to actually getting things into action. But there are a few things that you need to do to ensure that your new venture is able to thrive even during this phase of upheaval and economic hardship. Here are some measures that you should implement.
Realign spending structures: Though things sound optimistic for cyber startups, it is always good to have a realistic approach. Right now, you need to assess a realistic sales forecast for the business and adjust your initial spending accordingly.
Focus on employees: In tough times, businesses that take care of their employees are bound to win the survival game. Even if you have just started, you need to go the extra mile to earn loyalty and trust in the workforce. They will surely work harder and give their best efforts to push the growth of the new venture.
Invest in customer success: Apart from employees, customers matter the most for any business. Happy customers are all the more valuable for new ones because they spread the word for you. Moreover, they are more likely to increase their spending and renew their commitments with your company in the long run. Cybersecurity startups can make customers happy by providing assistance on how best to implement their solutions more effectively in tough times.
Make your products easy to use and manage: Taking customer success to the next level, you need to focus on product usability and manageability as well. Ideally, the solutions you offer should be easy to deploy and operate remotely because this is the need of the hour.
Offer service-led engagements: It is best not to assume that your potential customers already have the resources for implementing a cybersecurity solution. Rather, you should provide implementation and managed services with the objective to complement their existing teams and boost your revenues as well.
Reassess sales and marketing investments: As a new business, you need to be extra smart with your sales and marketing efforts. Meaningful online engagement with your customers can make all the difference at this juncture. Consider offering webinars, demos, online educational workshops, how-to implementation tutorials, and thought leadership content.
It is clear that cybersecurity startups are a great investment opportunity despite the pandemic-ridden situation, all because these services and solutions are high in demand. And the demand will probably grow even more in the post-COVID era. However, considering the volatile market situation at present, it makes sense to set up your venture with the right and realistic approach. If you are able to maintain that balance, you will definitely be able to achieve success.