By Mike Marlow, President & Founder, Information Systems of Montana
What Would Downtime Cost Your Business?
If your systems went down at 8 a.m. tomorrow, what would it cost your business by noon?
Not a guess — the actual dollar impact across lost revenue, payroll, and recovery.
Most business owners can’t answer that. And that’s a problem.
Businesses that survive major IT failures aren’t lucky — they’ve already calculated the cost of downtime and built a strategy around it.
That’s what true business continuity planning looks like:
Not a dusty binder, but a living strategy tied directly to your bottom line.
Downtime Isn’t an IT Problem — It’s a Revenue Problem
Many companies operate without understanding the financial impact of downtime.
- 60% of businesses cannot calculate their hourly downtime cost
- SMBs lose $25,000+ per hour on average
- Smaller companies lose $137–$427 per minute
- A 3-hour outage can cost up to $76,000
And that’s just the beginning.
These numbers don’t include:
- Recovery and forensic costs
- Legal and compliance risks
- Reputation damage
- Loss of client trust
For most businesses, downtime is one of the largest untracked financial risks.
The Ransomware Threat Is Bigger Than You Think
When people think of downtime, they imagine hardware failure.
The real threat today? Ransomware.
- 88% of SMB breaches involve ransomware
- Recovery can take days or weeks
- 70% of SMBs fail within 12 months of major data loss
Attackers don’t target size — they target vulnerability.
Businesses that recover successfully all have one thing in common:
- Tested backups
- A clear response plan
- A team ready to act immediately
The 4 Questions Every CEO Must Answer
If you don’t know these answers, you don’t have a continuity plan.
1. What is your Recovery Time Objective (RTO)?
How long can your business afford to be offline?
- Healthcare: ~4 hours
- Legal firms: ~2 hours
Your entire strategy must support this number.
2. What is your Recovery Point Objective (RPO)?
How much data can you afford to lose?
If your backups are 24 hours old, you lose:
- A full day of transactions
- Client data
- Operational records
3. Have you tested your recovery plan?
An untested backup is just an assumption.
Many businesses discover too late that:
- Recovery takes too long
- Systems were missed
- Procedures are outdated
4. Who owns the first 60 minutes?
The first hour determines everything.
You need:
- A clear response chain
- Defined responsibilities
- Communication protocols
Why Backups Alone Are Not Enough
“We have backups” is not a strategy.
Ask yourself:
- When was your last full restore test?
- How long did it take?
- Are your backups protected from ransomware?
A real business continuity strategy includes:
- Network segmentation
- Endpoint detection & response
- Incident response playbooks
- Secure backup infrastructure
- Communication planning
The Real Cost of Inaction
The average data breach now costs $4.88 million.
Compared to that, investing in cybersecurity and continuity is not an expense — it’s insurance for your revenue stream.
Small Businesses Are Not Safe
“We’re too small to be a target.”
That’s exactly why attackers choose you.
Cybercriminals prioritize:
- Weak defenses
- Outdated systems
- Limited response capabilities
Your size doesn’t protect you.
Your preparedness does.
Join the Cyber Resilience Webinar
Protect Your Bottom Line: The Montana Executive’s Guide to Cyber Resilience
Tuesday, June 2nd at 11:00 AM (MST)
What You’ll Learn:
- Industry-specific risks (healthcare, legal, finance, manufacturing)
- How to calculate and reduce downtime costs
- Practical cybersecurity frameworks
- Direct access to Mike Marlow and ISM experts
- Insights from other Montana business leaders
Contact us today and let’s identify what is preventable before it becomes expensive.
