Like any business, tech startups require seamless electricity to operate, but having access to consistent power is often taken for granted. It’s assumed that the electrical power will always be flowing, and when it stops, it becomes a serious disruption. Unfortunately, power outages happen frequently, and no business is immune.
Startups rely on power to run every aspect of business, from web servers and workstations to cloud-based applications and security safeguards. Any slight disruption to the stability of the power supply can lead to lost data and productivity, as well as lost revenue. In this article, we’ll explore the impact of power stability on tech startups and how they can mitigate potential disruptions.
The Impact Of Power Disruptions On Tech Startups
What appears to be a simple loss of power can have far-reaching effects for tech startups.
- Productivity loss. A power outage will inevitably cause downtime that forces teams to pause their work unexpectedly. This disrupts timelines and pushes out project deadlines, sometimes beyond what clients are willing to accept. But it’s not just long-term outages that cause problems. Even an outage that lasts mere seconds can corrupt data, creating the need for costly data recovery efforts.
- Financial loss. When the power gets disrupted, employees can’t perform their work. Hourly team members can be sent home, but salaried teams still need to be paid. Not only that, but clients who expect projects to be completed might pull out at the last minute or refuse to work with the company in the future. Tech startups might even be on the hook for paying clients for late deliverables, depending on the contract and urgency of the project.
- Data security and compliance risks. Power outages can compromise data security during an unexpected shutdown that leaves sensitive information vulnerable. Even though it’s considered rare, any company governed by data privacy regulations, like the GDPR or HIPAA, needs to have a stable power backup plan to maintain data integrity and avoid fines.
- Poor brand reputation. Today’s clients expect continuous service from tech startups, and power outages can disrupt more than just the service itself. When the power goes out, online communication disappears, which means clients can’t get support. If prolonged, this type of disruption can lead to a loss of trust and a tarnished reputation. Solutions for tech startups to secure power stability.
There are several ways to achieve stable power in the face of a power outage.
Invest In Backup Power Systems
Installing Uninterruptible Power Supply (UPS) systems and backup generators is the only way to avoid data loss and create a smooth transition for teams during a power outage. A UPS will provide enough power to perform important tasks, like saving critical work, disconnecting external drives, and powering down machines. Generators are ideal if power is needed for extended periods.
Perform Regular Transformer Inspections
Every tech startup benefits from regular inspections, but the stakes are higher when you own your electrical transformer. If your privately owned transformer fails, the power company won’t save you, so you’ll need a specific plan for obtaining a new unit as quickly as possible. Unfortunately, there has been a transformer shortage for several years, and lead times can be up to two years. That makes regular inspections even more critical.
If you know your transformer is failing, begin the process of replacing it now, before there’s an emergency. And choose your new unit wisely. Not all transformers are made with quality in mind. For instance, a dry-type transformer made by a reputable manufacturer will outlast a cheap unit made with inferior insulation.
Leverage Cloud-Based Solutions
If you can’t keep your business running from your physical office, having your operations based in the cloud will allow you to continue as if nothing happened. Using cloud-based applications eliminates reliance on on-premises infrastructure, and makes it easy to send your teams home to work remotely at any time.
Have A Contingency Plan
Having a well-defined contingency plan for a power outage will ensure you and your team members can spring into action quickly to mitigate your losses. A contingency plan should include assigning responsibilities to key people, having a plan for sending people home to work remotely if needed, and identifying temporary office space if needed.
Stable Power Equals Success
Tech startups that prioritize a stable power supply will thrive in the face of disruptions. By investing in simple backup solutions, leveraging cloud-based applications, and creating a solid plan, startups can maintain smooth workflows and mitigate the negative impact of losing power unexpectedly.
