How Expensive Is Downtime, Anyway?
If time is money, then how much money does downtime cost your business?
That’s a difficult question to answer. All companies have unique business plans and technologies. One thing is certain, though: downtime costs small businesses a lot of time and harms their reputations.
The damage that your company experiences depends on several factors, but you can expect downtime to harm you in the following ways.
Lost Revenue During Peak Hours
Most websites go down because their servers receive too many requests from internet users. As more people come to your e-commerce store, the server inches closer to capacity. Once it crosses the line, the server will crash and your store will go offline.
Suddenly, your business doesn’t have a way to sell its products and services to online shoppers.
That’s really bad news.
To make matters even worse, website downtime usually happens during peak hours when the most visitors come to your site. You have more people than usual trying to buy your products, but you can’t sell them anything because your website doesn’t work.
Since people do most of their shopping around 8 p.m., that’s probably when your website will fail. An hour of downtime, therefore, doesn’t mean that you’ve lost an hour of selling. It means that you’ve lost one of your most lucrative hours of selling.
The Cost of Reviving Your System
If your business struggles with downtime, then you probably don’t have an IT team that knows how to address the root of the problem. Since you don’t have the right personnel on staff, you’ll need to hire someone to revive your system and get everything back online.
Related: How to Create the Perfect BDR Plan
The good news is that most managed IT services are very affordable. The bad news is that you don’t have time to compare quotes. You need someone to solve the problem as quickly as possible.
In your rush to revive your system, you may choose a high-priced IT consultant that wants to take advantage of your situation. That person will probably solve your problem, but you’ll spend big bucks on the project.
Calculating the Cost of Downtime for Your Business
It’s relatively easy to talk generally about how expensive downtime is. In reality, downtime affects different companies in unique ways. The cost of downtime depends on factors like how many employees you have, how much of your sales take place online and how much you will have to pay someone to fix the problem.
A basic equation might look something like:
Cost of Downtime = Lost Revenue + Hourly Employee Pay + Recovery Fees
Unfortunately, not all factors related to downtime are easy to quantify. How do you determine the cost of:
- Losing customers to your competitors.
- Low employee morale.
- Customer dissatisfaction.
- Lost productivity while replying to angry customers.
- Ripple effects in your supply chain.
No matter how much you think downtime costs your business, you’re probably wrong. The true cost is much higher.
Related: How the Cloud Fits Your Business
Defeating Downtime for Good
Instead of worrying about how much downtime will cost your business, hire an IT company that offers network, business continuity, security and help desk services. Having a team of professionals on your side will help you avoid downtime. If downtime is unavoidable, the team at GB Tech can minimize its impact on your business.
Contact GB Tech to learn more about avoiding downtime and scheduling maintenance outside of busy hours. With the right approach, you can protect your business while your competitors suffer the consequences of unplanned downtime.