07/05/2023
Do you know your downtime business cost due to IT Failure? A study run by Carbonite estimated the average downtime cost for small business falls within a range of $137 to $427 per minute.
There are several consequences for small businesses in Miami such as:
- Lost productivity and revenue due to employees being unable to access systems and perform their jobs.
- Missed deadlines and lost business opportunities due to delayed projects or services.
- Reputation damage resulting from poor customer service or delivery delays.
- Increased stress and frustration for employees trying to get work done during downtime.
- Lost inventory or data that may be difficult or impossible to recover.
- High Cost of repairing or replacing damaged systems due to lack of preventive IT Support.
- Increased IT support costs for resolving the downtime and restoring systems.
- Loss of potential customers who may turn to competitors during downtime.
- Potential legal liabilities resulting from lost or compromised data.
- Negative impact on employee morale and job satisfaction due to reduced productivity and increased stress.
► Learn More about How Downtime and Slow Internet Affect Your Business
https://primetechbusiness.com/blogs/it-consulting/it-support-the-real-cost-of-network-downtime-businesses-in-miami
Overall, the costs of downtime can be significant, both in terms of financial impact and reputation damage. It is important for businesses to have plans and strategies in place to prevent and mitigate the effects of downtime.
Cost of Downtime (per hour) = Lost Sales + Employees Cost + Tech Support Cost
Suppose you own a firm with one to four employees that have an average annual receipt of $387,000 (Data from SBA). Now divide that number by 12 to get your average income per month: $32,250. If your company has 20 business days, we could say that the average daily receipt is $1,612.5.
Number of employees: 4
Employee Cost per hour: 4 employees charging 15 USD per hour:$80.00
Daily sales: $1,612.5 USD.
Sales costs per hour: Daily Sales $1,612.5 / 8 hrs — $201.56 /per hour
Repair costs per hour: $100.00 USD.
Small businesses usually don’t count on a technician to solve tech issues right away. Getting someone available to visit your company to diagnose network issues at your company would cost you at least 100 USD per hour. If you don’t have any documentation about your network, a diagnostic would take at least 2 hours.
The total cost of 1-hour downtime: $201.56 (lost sales) + 80.00 (employees cost) + 100.00 (Tech Support Cost) = 361.56 (22.42% from daily sales)
The total cost of 2-hours downtime: $361.56 x 2= 723.12 (44.84% from daily sales)
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