Key Data Types for a Small Business and How to Back Them Up

Small businesses generate and rely on various types of data, from customer records and financial documents to marketing materials and internal communications. Protecting this data through effective backup strategies ensures business continuity, security, and compliance with regulatory requirements. In this article, we’ll discuss the most important data types for a small business, how to back them up, and highlight some useful apps and websites for managing these backups. Real-world examples and stories are also provided to illustrate the concepts.

Key Data Types for a Small Business

1. Customer Records
2. Financial Data
3. Intellectual Property
4. Internal Communications and Emails
5. Marketing Materials
6. Project Management Data
7. Operational and Legal Documents
8. HR Data
9. Legal Documents

1. Customer Records

Importance: Customer records, including contact information, purchase history, and preferences, are the lifeblood of customer relationship management (CRM). They are critical for driving sales, marketing efforts, and providing exceptional customer service.

Backup Strategy:

• CRM Software: Use CRM software like Salesforce, Zoho CRM, or HubSpot CRM that offers cloud storage and automated backup.
• Regular Exports: Frequently export customer data and store it in a secure location, such as an encrypted cloud storage service like Google Drive or Dropbox.

Example:

• Emily’s Boutique uses HubSpot CRM to manage customer records. She schedules a monthly export of her customer data and saves it to Dropbox and a local NAS device to ensure redundancy.

2. Financial Data

Importance: Financial data, including invoices, payroll, tax documents, and accounting records, are essential for the economic health of the business. Loss of financial data can lead to significant challenges, including issues with tax compliance and financial forecasting.

Backup Strategy:

• Accounting Software: Utilize accounting software like QuickBooks, Xero, or Wave that provides secure cloud storage and automatic backup.
• Local Backup: Periodically export financial data and store it on an encrypted external hard drive or a Network Attached Storage (NAS) device.

Example:

• John’s Plumbing Services uses QuickBooks Online for managing finances. He exports his financial data quarterly and stores it on a Synology NAS to ensure he has a local backup for additional safety.

3. Intellectual Property

Importance: Intellectual property, such as patents, trademarks, designs, and proprietary research, represents the unique elements of a business that provide competitive advantage. Protecting this data is crucial for preserving business value.

Backup Strategy:

• Cloud Storage: Use secure cloud storage services like Tresorit or pCloud for encrypted backups of intellectual property.
• Document Management System: Implement a document management system (DMS) like M-Files or DocuWare that provides robust security and backup features.

Example:

• InnovateTech develops new technology solutions and uses Tresorit for storing and backing up their intellectual property securely. They configure Tresorit to automatically sync with a local NAS to maintain a redundant backup.

4. Internal Communications and Emails

Importance: Internal communications, including emails, internal memos, and chat logs, are essential for business operations, decision-making, and maintaining an organized workflow.

Backup Strategy:

• Email Backup Solutions: Use services like Google Workspace for Gmail or Microsoft 365 for Outlook, which offer built-in backup and archiving.
• Messaging Platforms: Employ messaging platforms like Slack or Microsoft Teams that support data export and backup features.

Example:

• Bright Marketing Agency uses Google Workspace for all email communications. They configure Google Vault for archiving and use BackUpify to regularly back up their Gmail data.

5. Marketing Materials

Importance: Marketing materials, such as graphics, videos, ad copies, and social media content, are crucial for brand promotion and customer engagement. Losing these assets can disrupt marketing campaigns and brand consistency.

Backup Strategy:

• Cloud Storage Services: Store marketing data on cloud storage services like Google Drive, Dropbox, or Adobe Creative Cloud which offer automated backups.
• Local Backup: Keep copies of key marketing assets on local drives or NAS devices to ensure accessibility in case of internet outages.

Example:

• GreenLeaf Landscapes stores their marketing materials in Adobe Creative Cloud and syncs with their local QNAP NAS to ensure local backups.

6. Project Management Data

Importance: Project management data includes task lists, timelines, progress reports, and collaboration documents crucial for running projects smoothly and ensuring team coordination.

Backup Strategy:

• Project Management Tools: Use tools like Trello, Asana, or Monday.com that offer cloud storage and backup.
• Periodic Exports: Regularly export project data and store it on a secure cloud service or local backup solutions.

Example:

• Tech Solutions Inc. manages projects using Monday.com. Weekly exports of project data are saved to Dropbox and an external hard drive for extra security.

7. Operational and Legal Documents

Importance: Operational documents, such as standard operating procedures (SOPs), policies, and legal documents, are fundamental for managing daily business activities and ensuring compliance with industry standards.

Backup Strategy:

• Document Management Systems: Implement systems like M-Files or DocuWare for secure storage and backup.
• Cloud and Local Storage: Use cloud storage for accessibility and local NAS for secure backups.

Example:

• Regal Manufacturing uses M-Files to manage their operational and legal documents. They back up these documents weekly to a Synology NAS and an external encrypted drive.

8. HR Data

Importance: HR data includes employee records, payroll information, performance reviews, and other sensitive personnel-related information. It’s crucial to protect this data to ensure employee privacy and compliance with labor laws.

Backup Strategy:

• HR Management Software: Use HR management systems like BambooHR, Workday, or Zoho People that offer secure cloud storage and backup.
• Encrypt and Backup Locally: Encrypt HR data and keep local backups on secure drives or NAS devices to protect against data breaches.

Example:

• HealthyLiving Clinic uses BambooHR to manage their HR data. They also back up the data weekly to an encrypted external hard drive and a Synology NAS.

9. Legal Documents

Importance: Legal documents, including contracts, compliance records, intellectual property filings, and other regulatory documents, are critical for protecting the business’s legal interests and ensuring it operates within the law.

Backup Strategy:

• Document Management Systems: Implement document management systems like M-Files or DocuWare for secure storage and automatic backups.
• Cloud Services: Use encrypted cloud storage services like Tresorit for backup and easy access to legal documents.

Example:

• Green City Architects uses DocuWare to manage their legal documents. They back up files to Tresorit and periodically export them to a QNAP NAS for local storage.

Effective Backup Practices for Small Businesses

1. Automate Backups:
   • Utilize tools and software that automate the backup process ensuring regular and consistent backups without manual intervention.
2. Diversify Backup Locations:
   • Implement the 3-2-1 backup rule: Keep three copies of your data, stored in two different formats, with one copy off-site (cloud storage).
3. Regularly Test Restore Process:
   • Periodically test the ability to restore data from backups to ensure the process works and that data integrity is maintained.
4. Use Encryption:
   • Encrypt sensitive data both at rest and in transit to enhance security and protect private information.
5. Keep Software Updated:
   • Regularly update your backup software to benefit from security patches and new features.

Conclusion

For small businesses, securing and backing up essential data types like customer records, financial data, intellectual property, internal communications, marketing materials, project management data, operational/legal documents, HR data, and legal documents is crucial for business continuity and growth. By employing a combination of cloud storage solutions (Google Drive, Dropbox, Tresorit, pCloud) and local NAS devices (Synology NAS, QNAP NAS), and following best practices for backup, small businesses can safeguard their valuable data against loss or breaches, ensuring smooth and secure operations.