Is Your Cybersecurity Budget Big Enough?

Is your company spending enough on cybersecurity? It's a question every business owner must carefully consider. A recent report found that while cybersecurity budgets increased by 4% this year, that's a significant drop from the 8% growth in 2024. This trend suggests many businesses are trying to balance security needs with broader economic pressures like rising costs and hiring constraints.

This slowdown in budget growth is concerning, especially as cyberattacks become more frequent and sophisticated. Without a thoughtful, dedicated budget, your company could be left vulnerable. This post will walk you through why a standalone cybersecurity budget is crucial and how you can build one that effectively protects your business.

How much is enough?

If you've never created a specific budget for cybersecurity, you're not alone. Many small businesses often lump these expenses into their general technology spending. However, as your company grows, cybersecurity becomes a vital part of risk management. A dedicated budget ensures you allocate sufficient resources to protect your operations, meet compliance requirements, and maintain the trust of your customers and employees.

Once you decide to create a cybersecurity budget, the big question is: how much should you spend? There isn't a single percentage that fits every business. Your spending should align with your company's reliance on technology and its specific risk exposure. For example, businesses that handle sensitive customer data or depend heavily on digital systems will need more robust protection than those with simpler setups.

To get started, review your current infrastructure. Consider these factors:

• System setup: How are your systems configured and managed?
• Existing protections: What security measures are already in place?
• Past issues: Have you experienced phishing attempts, malware, or significant downtime that indicate vulnerabilities?

Many businesses benefit from a formal cybersecurity assessment. These evaluations clarify your risk exposure and provide a solid foundation for your budget. You can conduct these internally using established frameworks or hire external professionals for an unbiased, expert opinion.

Building your cybersecurity budget

With a clear understanding of your risks, you can start building your budget. Identify what you need to do to maintain existing defenses and address any weaknesses you've found. From there, you can calculate the associated costs.

Most companies have recurring cybersecurity expenses, including:

• Software subscriptions (antivirus, firewalls)
• Regular system updates and patches
• Data backup and recovery services
• External monitoring or support contracts

Your budget should also account for periodic enhancements as your technology evolves or new threats emerge. While unexpected upgrades might still be necessary—especially after a cyberattack—planning ahead makes spending more predictable and manageable.

Make it a recurring line item

It's no longer a matter of if a cyberattack will happen, but when. Because of this, cybersecurity is most effective when treated as a proactive, ongoing priority, not just a reactive measure. Adding cybersecurity as a recurring line item in your annual budget supports consistent investment and allows you to plan for long-term improvements without sudden financial strain.

Just as you review your overall budget throughout the year, you should revisit your cybersecurity spending at least annually. Your needs will change as your business grows or adopts new technology. By paying close attention to your budget, you can ensure it remains aligned with your operational needs and strategic goals.

We can help you reduce your risk

Cyberattacks can severely disrupt your operations and create significant financial risk from downtime, recovery costs, and potential legal issues. We can help you evaluate these costs, set priorities, and identify the most impactful investments for your business. Whether you're creating a cybersecurity budget for the first time or refining an existing one, our team is here to provide the clarity and strategic guidance you need.