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Why security is important for new companies

Business owners in California and elsewhere should have a cybersecurity policy from the minute they start their companies. While technology strategy was once an afterthought, it now plays a major role in running a successful company. In many cases, how a company uses technology will dictate how the company operates. This is generally true even if a business isn't in the technology sector.

Documents such as emails, financial information and other records may be kept on a server or some other network. These documents may be just as or more valuable to someone else as they are to a business owner. In some cases, an information thief simply observes as emails are sent or other data is revealed inside the network. At some point, the hacker may choose to sell information to another party who may be able to use it for their own business purposes.

Such a scenario could occur because of weak passwords, a piece of malware or weaknesses in network security. However, a company may not know that it has been hacked or that information has been stolen until it goes to file for a patent. At that point, it may be too late as another company could have already filed for a patent or marketed the product.

During the entity formation process, a company may be wise to consider all the issues that it may encounter. For instance, it may be a good idea to think about and plan for cybersecurity threats that could harm the business now or in the future. Doing so may prevent a security breach that could threaten its ability to file for patents or put customer information at risk.

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