By now, you’ve probably heard about password managers, but what are they? Today’s password managers aren’t just password storage and management tools. With tons of features, they’ve become nothing less than a staple of cybersecurity for both businesses and the everyday web user. Dark web monitoring, secure document storage, and encrypted cloud password storage are just some of the great features today’s password managers offer.

But password management goes beyond just protecting your personal and business information. In the long run, it can potentially save your business thousands of dollars in cybersecurity costs and damages. How? We’re glad you asked.

Here are five ways password management can save a business money.

1.  Cost Of A Data Breach Vs. Password Manager Costs

The average enterprise password manager costs just a few dollars per month. Consider this an investment in the future of the business, which accounts for maybe $500 per year in costs. On the other hand, a data breach can cost anywhere from a few thousand dollars in damages to a few million, depending on the size and severity of the breach. Let’s not forget that the cost of a data breach goes well beyond financial damages. There are other costs that can potentially put you out of business.

For starters, a data breach can cost your business its reputation. Once you lose the confidence of your customer base, you’re more than likely going to lose a percentage of that base, if not all of it. For those businesses whose customers stick around after a data breach, it’s much more difficult to attract new customers once the reputation has been tarnished.

Secondly, a data breach costs all of us, because it helps hackers improve their methods and gives them access to even more records than they had before. There are billions of records available in places like the dark web, and every time a data breach occurs, those numbers swell, and the internet becomes a little less safe.

The bottom line is that protecting your business and personal data starts with creating, managing, and securing better passwords. A password manager can help you achieve this for minimal cost, and potentially help you avoid the devastating consequences that a data breach can inflict.

2. Passwords Are Linked To Most Data Breaches

Did you know that about 80% of data breaches in 2019 were linked to compromised passwords? This startling statistic tells us everything we need to know about passwords, and it’s not good. Passwords are often neglected, treated as an afterthought by the average internet user. It’s easy to forget that passwords are literally the first line of defense against a hacker, and using things like personal information and common phrases as passwords is setting yourself up for failure.

The average person reuses their passwords over a dozen times, which creates the problem of recycled passwords being passed around at work and at home. Recycled passwords are far easier to breach, and once the hacker has one, they’ve got access to multiple accounts.

3. Creating Stronger Passwords

Creating stronger passwords is perhaps the best way to make sure your business has the right amount of protection. But not everyone understands what a good password looks like, which is why modern password managers make it easy. With password generator tools, strength auditors, and expired password reminders, you can create stronger passwords all around. You’ll be able to compare your password against the strength auditor and improve it as necessary.

4. Lower Cybersecurity Costs In General

You might be surprised by how much better passwords can reduce your overall cybersecurity costs. Passwords are a simple solution to a growing problem, and instead of paying for expensive software, you can simply acquire a password manager to help create a stronger cybersecurity infrastructure without spending a fortune.

Many businesses will spend thousands on cybersecurity software programs and antivirus software, only to find that their password habits are terrible. Start with passwords. Educate yourself and your employees, and use the right tools. Once you’ve nailed, that, you can take a look at where your other cybersecurity vulnerabilities are.

5. Protecting Sensitive Data

A business’s most valuable resource is data. Its own personal data, customer data, industry data, etc. Without data, a business can’t grow, and data has to be protected. Protecting business data should be every business’s priority, especially a small business. Small businesses generally tend to come under attack more frequently because of a lack of resources to combat cyberattacks. The best way to protect yourself and your data is to use a password manager!

Conclusion

Businesses often don’t consider that their lack of proper passwords can potentially cost thousands of dollars, but in today’s world, a bad password can be the downfall of even the largest organizations. Password managers can save money and your business’s reputation by securing your most sensitive data and help develop better password habits.

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