Technology is the backbone of every modern business, yet most small businesses unintentionally create weak spots in their systems. These issues rarely show up immediately. Instead, they quietly drain productivity, increase risk, and set the stage for expensive downtime or security incidents.
Below are the ten most common IT mistakes small businesses make, why they happen, and what practical steps you can take to prevent them.
1. Not Having a Reliable Backup Strategy
Many businesses believe their files are safe because they are saved in Google Drive, OneDrive, or on a local NAS device. But synced storage is not the same as a backup. If ransomware encrypts your synced drive, it encrypts everything in the cloud too.
What goes wrong
- No dedicated backup system
- Relying solely on cloud sync services
- Backups stored in the same network that gets compromised
- Backups never tested
- Only backing up servers but not endpoints
How to fix it
- Follow the 3-2-1 backup rule:
3 copies of your data, 2 different storage types, 1 offsite location. - Use proven backup tools like Veeam, CrashPlan, or Backblaze Business.
- Store at least one backup version offline or immutable.
- Test restore procedures quarterly so you know your backups actually work.
- Document backup responsibilities so nothing depends on memory or luck.
Useful resource:
3-2-1 Backup Strategy Explained
2. Using Weak or Reused Passwords
According to Verizon’s annual breach report, weak or stolen passwords remain a leading cause of data breaches. Password reuse across tools compounds the problem, and attackers know it.
What goes wrong
- Employees use simple passwords like “Company123”
- Passwords shared through email or spreadsheets
- No MFA on accounts that hold sensitive data
- No policy requiring password changes
How to fix it
- Require unique passwords per system and enforce length/complexity requirements.
- Implement a business password manager such as:
- Turn on multi-factor authentication (MFA) everywhere that supports it: Microsoft 365, Google Workspace, QuickBooks Online, banking, and all admin portals.
- If possible, use hardware security keys like YubiKeys for critical staff.
3. Running Outdated Software and Operating Systems
Unpatched systems are one of the most common entry points for attackers. When small businesses delay updates or cling to outdated software, they inherit years of known vulnerabilities.
What goes wrong
- Unsupported versions of Windows or macOS
- Old browsers that break modern websites
- Legacy business software not compatible with updates
- Fear that updating will cause something to stop working
How to fix it
- Enable automatic updates for all devices, browsers, and applications that support it.
- Maintain a monthly patch schedule overseen by someone accountable.
- Replace legacy systems that cannot be patched or supported.
- Use Security Baselines and automated patching tools included with:
- Microsoft Intune
- RMM platforms like NinjaOne or ManageEngine
Useful resource:
Microsoft Lifecycle Support Search (useful for checking if software is out of support)
4. Using Old or Failing Hardware
Old hardware doesn’t just slow down employees. It also crashes more often, introduces compatibility issues, and creates security risks due to outdated firmware.
What goes wrong
- Hard drives fail without warning
- Machines cannot run current security tools
- Old firewalls cannot handle modern encryption or bandwidth
- Staff waste hours waiting for slow devices
How to fix it
- Replace business workstations every 4 to 5 years.
- Replace servers every 5 to 7 years.
- Replace firewalls, switches, and access points every 3 to 5 years.
- Use tools like CrystalDiskInfo, SMART monitoring, or RMM systems to detect early signs of failure.
- Budget for equipment refresh cycles to prevent emergency replacements.
5. No Written IT Policies or Documentation
Documentation may not feel glamorous, but lack of it is one of the biggest root causes of recurring IT problems. Policies keep operations consistent, predictable, and secure.
What goes wrong
- No record of who has access to what
- Employees leave with knowledge or passwords nobody else has
- No standard process for employee onboarding or offboarding
- Accidental data loss due to unclear procedures
How to fix it
Create a brief internal IT handbook covering:
- Password standards
- Access control and approval
- Data handling and retention
- Rules for installing or approving software
- Device usage expectations
- New hire setup and departing employee offboarding
You do not need a 100 page document. Clear, simple instructions are enough.
Useful resource:
NIST Small Business Cybersecurity Basics
6. No Formal Cybersecurity Plan
Many small businesses simply hope nothing bad happens. That is not a plan. Cyberattacks are rising every year, especially against small organizations.
What goes wrong
- No threat monitoring
- No incident response plan
- No employee training
- No encryption on laptops
- No email security beyond default settings
How to fix it
- Use EDR (endpoint detection and response) rather than basic antivirus.
- Protect email using tools like Microsoft Defender for Office 365 or Proofpoint Essentials.
- Train staff quarterly using platforms like KnowBe4 or Cofense.
- Encrypt all company laptops and enforce lock screen timeout policies.
- Create a basic incident response plan outlining who does what during a cyber event.
7. No Network Segmentation
A single flat network makes it easy for attackers to move laterally once they breach a device.
What goes wrong
- Guest WiFi uses the same network as company systems
- IoT devices (like smart TVs or security cameras) live on the main network
- Malware can spread easily between departments
How to fix it
- Separate guest WiFi into its own VLAN.
- Put IoT devices in their own restricted network.
- Use firewalls that support segmentation and traffic inspection.
- Review your WiFi password policy so shared or old passwords do not create risk.
Useful resource:
Intel’s guide on network segmentation
8. Poor Email Security
Email is still the number one attack vector for phishing, account takeover, and malware distribution.
What goes wrong
- Weak or outdated spam filtering
- No domain authentication
- Employees tricked by phishing
- Admin accounts reused across multiple logins
How to fix it
- Implement domain-level protection with DMARC, DKIM, and SPF records.
- Use advanced email security solutions like Barracuda, Proofpoint, or Defender.
- Run phishing tests every quarter to keep employees alert.
- Require MFA for all employees, not just administrators.
Useful resource:
DMARC.org for understanding and deploying DMARC.
9. No Asset Inventory
You cannot secure or maintain what you do not track. Many small businesses have no idea which devices, software, accounts, or licenses they actually own.
What goes wrong
- Old devices remain connected and unmonitored
- Lost or stolen devices still hold sensitive data
- Unknown software remains unpatched
- No visibility into licensing or renewals
How to fix it
- Use automated asset tracking tools such as:
- Microsoft Intune
- NinjaOne Asset Management
- Lansweeper
- Tag physical equipment and maintain a central inventory.
- Disable unused accounts and decommission old hardware properly.
- Keep an up-to-date list of SaaS apps and user access levels.
10. Relying on DIY IT or a Single “Tech Savvy” Employee
Many small businesses depend on an employee who knows “just enough” to get by. They mean well, but this approach is fragile.
What goes wrong
- No strategy or future planning
- No backups or documentation
- Improper handling of security risks
- Overwhelmed employees juggling IT and their real job
- Burnout, gaps in knowledge, and inconsistency
How to fix it
- Outsource to a managed IT provider or hire a professional IT resource.
- Build a lightweight IT roadmap for 12 to 24 months.
- Transition day-to-day responsibilities away from staff not trained in IT.
- Implement standardized processes and centralized documentation.
Useful resource:
SANS Small Business Security Essentials
FAQ: Common IT Mistakes and Best Practices for SMBs
Q1. How often should a small business replace its computers?
Most businesses should refresh workstations every 4 to 5 years to maintain performance, security, and compatibility with modern software.
Q2. Is cyber insurance worth it for small businesses?
Often yes. Many cyber insurance providers require basic protections like MFA, backups, and endpoint security. It can significantly reduce post-incident costs.
Q3. Should small businesses use local servers or move to the cloud?
Cloud services are ideal for most SMBs due to lower maintenance costs, improved security, and easier remote access. Local servers still make sense for specialized or compliance-heavy environments.
Q4. How do I know if my business is a target for hackers?
Every business is a target. Attackers often automate their scans and pick easy victims based on known vulnerabilities, weak passwords, or misconfigured systems, not company size.
Q5. What is the simplest way to improve IT security quickly?
Turn on MFA across all accounts, update all devices, and install a reputable endpoint protection solution. These steps drastically reduce the most common attack paths.
This article was prepared by ITGuys IT Support and Consulting, a Colorado-based provider of managed IT services, cybersecurity, and technology strategy tailored for small and midsize businesses.
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