Most business owners just think about the cost of the labor that it took from their IT guy to get them back up and running. But there are many more costs that you will pay.
Let’s look at an example of a 5 day server downtime:
If your company had Gross Revenue: $1.5 million and Payroll: $700,000
Your losses would be:
Lost payroll: $13,461 Lost sales revenue: $28,845 Between these two measurable costs you just lost $42,306.
Now let’s say, your computer guy worked after-hours for you and probably has no less than 40 hours getting you back up and running. If he only charges you $125 per hour, that’s an additional $5,000.
Now this server crash has cost you $47,306.
If the data on the hard drive needed to be sent to a recovery company this could cost you between $10,000 and $20,000 in recovery costs. But this is small price to pay when you consider that if the data was completely lost you might never be able to re-type it back into your system because you don’t have a hard copy of your information.
But, what about costs that are now so easy to calculate: