When business leaders think about outages, many picture enterprise-scale meltdowns. But for small to mid-sized businesses, a single hour of downtime can quietly cost thousands—and yet, it's rarely budgeted for.
Let’s walk through a realistic, fictional example that illustrates how one short IT outage can turn into a $10,000 mistake—and why it's critical to have a solid IT strategy in place before disaster strikes.
Imagine a professional services firm—an engineering consultancy with 10 employees who rely on cloud-based design software, project management tools, and shared drives to stay productive.
Everyone is salaried at an average of $95,000 per year, or roughly $45/hour. Projects are billed at $150/hour per team member.
Suddenly, no one can log into the server. File access freezes. Communication platforms go dark. Calls to IT go unanswered. The firm relies on a lone in-house technician who’s stuck on another issue and doesn’t have visibility into the current outage.
Let’s assume this outage lasts for just one hour. Here’s the financial impact:
➡️ Subtotal: $1,950
➡️ Updated Total: $2,400
➡️ Estimated business opportunity loss: $3,000–$5,000
And that’s being conservative. If the outage happened during a key delivery window, tax season, or bid deadline, the cost could easily climb above $10,000. Worse, frequent outages damage your brand, client trust, and employee morale.
Most SMBs don’t explicitly budget for the cost of IT downtime. They may pay for software and support, but they often fail to account for:
Waiting until something breaks to act is expensive—and completely avoidable.
Here are a few smart, proactive steps growing firms can take:
Backups aren’t enough. You need a strategy to restore services and minimize downtime.
Access 24/7 support, monitoring, and a team of specialists that one internal hire simply can’t provide alone.
Many outages are caused by preventable software failures, outdated systems, or human error.
Schedule periodic stress tests and incident response simulations.
IT downtime doesn’t have to last long to be expensive. Whether it’s 60 minutes or six hours, the financial, operational, and reputational impact adds up fast.
Instead of crossing your fingers and hoping the systems stay online, consider a proactive approach that aligns your technology with your business goals—and protects you from that $10K outage you never budgeted for.
Schedule an IT assessment to uncover vulnerabilities and build a more resilient technology strategy for your business.