Cyber Attacks Cost Small Businesses an Average of $200,000—Here's How to Avoid Them
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Even before COVID hit, small businesses were prime targets of costly cyber attacks. On average, cyber attacks cost small businesses as much as $200,000 in 2019. By the numbers, 28% of small businesses experienced a data breach within the last 12 months, of which 37% suffered a financial loss, 25% filed for bankruptcy, and 10% went out of business. Now, as small businesses rapidly shift their brick-and-mortar shops online to accommodate consumers’ accelerated adoption of e-commerce, they’re even more vulnerable to cyber threats.
To learn more about how small businesses can safely and successfully pivot to digital during COVID and beyond, Create & Cultivate partnered with Mastercard as the presenting sponsor to host an eye-opening cybersecurity workshop led by none other than Ginger Siegel, the North America Small Business Lead at Mastercard, at our recent Future of Work Summit. Below, we’re sharing some of the most valuable takeaways from the information-packed session. If you missed the workshop (or just want a quick refresher course!), scroll on—and be sure to grab a pen because you’re going to want to commit this info to memory!
The Trends Pushing Small Businesses to Go Digital
Trend #1: Contactless Payment
With social distancing evolving into a long-term norm, continued reliance on delivery, pick-up, and alternative points of sale will push small businesses to adopt more versatile payment methods, making the market for contactless payment methods such as tap on phone adoption, says Siegel.
“We already expected to see an increase in contactless spend, but COVID-19 has really accelerated this behavior and made consumer demand shift quicker than anticipated,” she explains. “46% of global consumers have swapped out their top-of-wallet card for one the provides contactless functionality, and about 74% of consumers said they will continue using contactless post-pandemic.”
Trend #2: E-Commerce
As consumers increasingly rely on e-commerce solutions, getting the basics of business operations online will be essential for small businesses’ survival, explains Siegel. According to Mastercard SpendingPulse, e-commerce in April and May made up 22% of all retail sales in the U.S., which is up from 11% in 2019.
Put another way? More money was spent online in the U.S. in the span of two months than the last 12 Cyber Mondays combined. If small businesses don’t keep pace, they may lose the opportunity to meet market demands in the future. “82% of small businesses have actually changed the way they send and receive payments and 51% have been transitioning their clients to digital methods,” notes Siegel.
Trend #3: Digital Services
While online card payments have seen an increase of 60% during the pandemic, the use of cash and checks has decreased by 34% and 24%, respectively, according to a recent survey conducted by Mastercard. “67% of small businesses said that one upside to the pandemic is that it prompted them to upgrade their digital payment solutions,” notes Siegel of the trend.
“Small businesses plan to stick with digital business payments, even as the pandemics subsides,” says Siegel, pointing to increased customer satisfaction as the driving factor behind the shift. About 70% of small businesses say that they're willing to invest in the technology required to advance their payment systems and 73% say digital payments are the new normal for their business going forward, she notes.
The Top Cyber Threats to Small Businesses
As small businesses rely on digital payments to serve their customers and digital means to communicate with employees, cyber threats are becoming more and more prevalent in the small biz community. 43% of cyberattacks are aimed at small businesses, but only 14% are prepared to defend themselves, according to Accenture.
Here are two common types of cyber threats to small businesses:
Threat #1: Ransomware
In this scenario, bad actors gain access to data from a small business and demand a ransom payment in order to return the stolen and now-encrypted data.
Threat #2: Compromised email
In this case, a bad actor gains access to a small business employee’s email account and sends an internal email impersonating the employee making an urgent request for funds to be transferred to them.
The Steps for Getting Started With Cybersecurity
If you don’t know where to start with cybersecurity, you’re not alone. According to Keeper Security, 60% of small business owners do not have a cyberattack prevention plan. “81% of small businesses tell us that they really wish that someone would proactively alert them to changes in the cybersecurity landscape and provide best practices for small business,” explains Siegel.
Which is why Mastercard is developing dedicated cybersecurity solutions and educational resources for small business owners through their Digital Doors center, a curated set of resources to help guide, grow, and protect small businesses during these difficult times as well as through recovery. For more information on navigating COVID-19 as a small business, head to Mastercard.com.
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67% of small businesses said that one upside to the pandemic is that it prompted them to upgrade their digital payment solutions.”
—Ginger Siegel is the North America Small Business Lead at Mastercard
About the Expert: Ginger Siegel is the North America Small Business Lead at Mastercard. Most recently, she was a senior manager in the financial services group in Deloitte where she was a member of the highly ranked payments practice and also focused on fintech and bank partnerships, small business, and commercial banking opportunities in the areas of strategy development, process design, and operation model transformation. She brings 30 years of industry leadership experience as an executive at large multinational and regional banks in the areas of small business, business banking, and retail with a focus on strategy, leading execution, payments, treasury management, SalesForce optimization, branch optimization, and revenue growth.
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4 Small Business Owners on How to Pivot to Digital and Navigate the Future of Retail
“Remain agile and have multiple avenues through which you can bring in revenue.”
Photo: Smith House Photography
It’s no secret that COVID is challenging small businesses everywhere to rethink the brick-and-mortar business model. With physical retail locations temporarily closed and e-commerce on the rise, it’s crucial for small businesses to pivot to digital to weather the pandemic.
In a Mastercard study of small businesses across North America, 76% say the pandemic prompted them to become more digital, with 82% changing how their business sends and receives payments. 70% say they are willing to invest in the technology required to advance their payment systems and 73% say digital payments are the new normal for their business going forward.
To learn more about how small businesses can successfully pivot to digital during COVID and beyond, Create & Cultivate partnered with Mastercard as the presenting sponsor to bring together four powerhouse entrepreneurs who are expertly navigating the increasingly virtual future of retail at our recent Future of Work Summit on Saturday, September 12th, 2020.
Ginger Siegel, the North America Small Business Lead at Mastercard, led a conversation with Michelle Cadore, small business owner and designer, Amber Tolliver, founder and CEO of Liberté, Sherly Tavarez, founder of Hause of Curls, and Whitney Rife Becker, fashion influencer and entrepreneur, to delve into the topic. Read on for some of the most noteworthy sound bites from the discussion.
On knowing when to strike out on your own…
“I always said that by the end of the year, I’d be a full-time entrepreneur.” - Michelle Cadore
“Really think about laying out your exit plan. Lay out the steps, lay out the financial foundation, to move forward.” - Michelle Cadore
“I moved without any savings, I just took the leap. I just knew it was going to work out. Just have faith in your business and try.” - Michelle Cadore
On the self-funding and bootstrapping processes…
“It’s really important to show a desire in the market for your product or service.” - Amber Tolliver
“The more you’re able to show proof of concept within your space, the better of you’ll be when you go to bring on outside investment.” - Amber Tolliver
On knowing what to look for in a partnership…
“Bringing on VC and angel investors, it's really like a marriage. You need to have a firm understanding of what they're bringing to the table, and it really should be about more than money.” - Amber Tolliver
“You really have to take a diligent look at the parts of your business that need assistance, and look for a partner that can fill in those gaps.” - Amber Tolliver
“You want to partner with people who will expand your name and help you reach people who you wouldn’t usually be able to reach.” - Amber Tolliver
“The only way to get through this and to come out of it better than we were when we first went in, is together.” - Amber Tolliver
“Bringing new products, bringing something different that their customers haven’t seen yet, as well as expanding our reach.” - Amber Tolliver
On launching your own company…
“I invested just $300 and a dream” - Sherly Tavarez
“Once I realized that so many people related to my story attached to the T-shirt, I knew I had to make it a business.” - Sherly Tavarez
On reaching a wider audience digitally…
“Thinking more digitally, how have we been able to keep our community connected.” - Michelle Cadore
“Hashtag everything, share everything, work with influencers.” - Whitney Rife Becker
“Teaching yourself and doing your due diligence so that everything you’re putting out onto the internet has a direct link back to you.” - Amber Tolliver
On crisis-proofing your business…
“Remain agile and have multiple avenues through which you can bring in revenue.” - Amber Tolliver
“At any moment in time, you can say that doors closed, but we’ve got the window and we’ve got the back door. We’ve always got people to connect with the brand in a way that's still driving revenue and keeping that community connected and engaged with you.” - Amber Tolliver
On money tips for small business owners…
“Only buy products you love, it’s easier to sell those products.” - Whitney Rife Becker
On what COVID-19 has taught them…
“That we are unstoppable. Even when you have to sit down for six months and be on pause as a business, it gave me the space to really plan and grow my business. Taught me to keep going, keep pushing.” - Michelle Cadore
“It taught me to pivot.” - Sherley Tavarez
On the future of work…
“It’s ours. Brands are trusting us, influencers, and businesses are trusting the world. We have everything we want at our fingertips.” - Whitney Rife Becker
“Digitally, you can do anything, there are no limits to what we can do and what we can achieve, I think it's a really incredible time to be an entrepreneur.” - Amber Tolliver
“The future of work is adaptable, you have to be flexible and move with whatever changes are coming and stay innovative.” - Michelle Cadore
Psst… If you’re having serious FOMO, join Create & Cultivate Insiders to get unlimited access to all of our Future of Work Presented by Mastercard content including video recordings of every panel and workshop download in C&C history.
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Hey, Hustlers! Here's What to Expect at Our Future of Work Summit Presented by Mastercard
Spoiler alert: Cameron Diaz will be there.
Photo: Smith House Photography
As society re-emerges, we’re all navigating what it means to “get back to business” in this new normal. That’s why our biggest virtual event of the year will be all about the future of work. From hard-hitting conversations about pivoting to digital and navigating remote leadership to reimagining retail and making the most of social media marketing, our Future of Work Summit presented by Mastercard has it all, and so much more. It’s time to re-examine our big-picture strategy, so let’s put our creative caps on and plan for what’s next, together!
Our line-up for Saturday, September 12th is stacked with capital B bosses. Jenna Lyons is kicking off the day with an inspiring conversation on how to turn what you love doing into a successful business, then Hillary Kerr is taking the virtual stage with Camila Alves McConaughey to talk about how she switched lanes from model to media mogul and community leader, and Katherine Power and THE Cameron Diaz are taking the mic to share how they bonded over wellness and wine and built a clean wine brand from scratch. Trust us, you won’t want to miss out!
Read on to learn more about everything we have planned and what you need to know to make the most of it. If you haven’t already, be sure to buy your digital pass ASAP!
Psst… Insiders get access for free. (Yep, free!) Not an Insider yet? Read up on all the perks and sign up here.
THE DATE
Saturday, September 12th, 2020
TUNE IN FROM HOME
First things first! On Saturday, September 12th, you’ll receive an email with the link to access the exclusive Future of Work site. Please note: All content will go live on Pacific Daylight Time (PDT), including the launch of the exclusive Future of Work site. To find out what time a session is happening in your time zone, use this handy time zone converter.
Future of Work is made up of pre-recorded video sessions hosted via Vimeo and live video sessions streaming via Zoom. We recommend that you have a strong WiFi connection and update to the latest version of Zoom for the best experience. Future of Work is optimized for desktop, so it is best viewed via a computer or laptop, rather than a tablet or phone.
While the live content is specifically designed to be watched in real-time, you’ll be able to access and view it until Friday, September 18th at 5 pm PDT (Insiders, you have all-access even after the cutoff via your C&C Insiders dashboard!). You’ll be able to RSVP up until Tuesday, September 15th at 12 pm PDT.
THE SCHEDULE
Future of Work is built just like our in-person conferences, which, of course, you all know and love. We have a stacked schedule with an A-list line-up of speakers so we suggest taking notes along the way.
Want the full lineup? Check out the play-by-play schedule to map out your big day. Please note, all times are listed in PDT (Pacific Daylight Time) and EDT (Eastern Daylight Time). To find out what time a session is happening in your time zone, use this time zone converter.
It’s going to be HUGE so we recommend getting a head start on planning out your day now.
THINGS TO PREP AHEAD OF TIME
Here are a few things to prep before the big day so it goes off without a hitch:
Make sure you have a strong WiFi connection.
Install Zoom on your desktop computer or laptop and test it out.
Zoom tips:
Find a quiet place to tune in. Try to situate yourself in a small room that does not have an echo.
Try and stay away from noisy electronics and silence your cell phone and computer notifications for an optimal experience.
When possible, limit your internet connection to solely the device you’re using for the Zoom conference.
Set your phone to airplane mode, pause your television connection, ask others in your home to pause anything that may require a strong internet connection, etc.
Be sure to download the workshop assets so you can follow along with the expert in real-time. Note: Your exclusive workshop downloads will be available starting Saturday, September 12th via the exclusive Future of Work site.
Join the Mentor Power Hour Slack channel and peruse the list of mentors who will be answering questions in real-time in hour-long Zoom webinars and choose your mentor(s).
We have experts in everything from personal branding to building start-ups from scratch to raising funds.
If there’s more than one mentor you want advice from, don’t worry! You can hop from session to session over the course of the hour if you’d like.
Don’t forget to jot down any questions you have for the mentor sessions ahead of time! You’ll be able to ask your Qs in real-time by typing them into Zoom’s Q&A feature.
GET SOCIAL
Stay tuned for exciting announcements and updates by following along on our social at @createcultivate. Don’t forget to tag @createcultivate and use the hashtag ##CCFutureOfWork for the chance to be featured in our Instagram Stories throughout the day! (Psst… Search “Create Cultivate” on Instagram to use our custom GIFs.)
NETWORK
Networking is a huge part of our event and our C&C Future of Work Attendees Slack Workspace is a great place to mix and mingle with your fellow Create & Cultivators before, during, and after the big day. We’ve created channels for every workshop and panel, as well as channels for international attendees, networking, and more!
Attendees will receive a link to access our Create & Cultivate Future of Work Attendees Slack Workspace in our What to Expect newsletter on Wednesday, September 9th. This Slack channel will remain accessible until Friday, September 18th at 12 pm PDT. Not familiar with Slack? Here are a few tips to get you started:
Download the Slack app to your phone, computer, or both
Complete your account profile with a profile photo, your name, and what you do
Public conversations will happen in the channels (ex: #networking) and are located on the left-hand side of the app. You can also start direct messages with others in the Slack workspace
Hit send too early on a message? Slack has an edit feature! Click the three-dot icon located on the right side of the message to open the drop-down of message options
We’re all about GIFs at C&C! Here are instructions on how to integrate GIPHY into your Slack account.
Our Slack workspace is a busy, happening place on the day of the event. Streamline the notifications you receive by using the “mute” feature on channels that don’t pertain to you. To mute a channel, simply open up that channel, click the three-dot icon labeled “more,” and select the mute option
Most importantly, be kind and respectful of others. If you don’t follow this rule, you will be removed from the Slack group
If you have any questions on the day of the event about navigating the schedule, accessing the workshop downloads, or anything else, you can drop them into the customer service channel in Slack.
C&C INSIDERS’ PERKS
Our Insiders get a ton of perks at all our events—and Future of Work is no exception. As an Insider, you’ll have access to all of the workshops, mentor sessions, panels, and keynotes via your C&C Insiders dashboard. This content will be uploaded by September 25th, 2020. Not an insider yet? Well, don’t miss out—you can sign up here.
VIRTUAL GIFT BAGS
We know you want ‘em! Complete our post-event survey to receive an email packed with promo codes from some of your favorite brands, including Parade, UOMA Beauty, Hause of Curls, Tonic Site Shop, Amanda Kolbye, and more. You’ll receive the survey in your inbox on Friday, September 18th, 2020.
TECHNICAL DIFFICULTIES?
Live chat with a C&C specialist on CreateCultivate.com. You’ll see a “Chat With Us” pop-up in the bottom right corner of your screen.
WE ARE SO EXCITED TO SEE YOU ONLINE! Who are you most excited to hear speak? Which workshop are you looking forward to most? Tell us in the comments below!
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