Top 10 Reasons Why Cloud Storage is a „Must-Have“ for Startups
There are many risks associated with running your own business, but several of them can be mitigated by choosing the right cloud storage for startups.
Bill Holler photo

Bill Holler

CEO at Cert-Trace® 

More than two-thirds of startups fail, according to Harvard Business Review, so it’s clear that there are many risks associated with starting up your own business. But that entrepreneurial spirit is responsible for many of the biggest businesses in the world as well as products and services that have changed the way we live and work.

So if you want to take the plunge, it’s important to understand the common risks for startups as well as the solutions that can help you be one of the one-third of startups that succeed.

In this guide we’ll cover some of those common risks as well as explain why cloud storage for startups should be one of the must-haves that will make the difference for you.

Common risks faced by startups

According to CBInsights, 38% of startups fail because they ran out of cash, with 35% falling by the wayside because there was no market need for their product or service. A further 20% found that they were outcompeted, while 19% had a flawed business model.

Other issues identified in the report were regulatory or legal challenges (18%), pricing/cost issues (18%). So while some risks can only be avoided through careful planning and research into the potential market for the product or service being offered, or through finding the right investment, some are very much down to day-to-day operations.

This is where cloud storage for startups is the kind of solution that can help mitigate some of these risks.

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Reasons why a cloud storage solution is necessary for startups

Top 10 reasons why cloud storage for startups is a ‘must-have’

A cloud-based solution makes sense for startups for many reasons so we’ve picked out the top ten most important when it comes to the risks that startups face.

1. Cost savings

Running out of cash seems to be the most common reason why startups fail, so it’s clear that finding the most cost-effective way to run your businesses on a day-to-day basis is essential.

Buying unnecessary IT hardware is definitely not the best way to go when cloud-based software can fulfil so many of the same needs at a fraction of the price.

One of the main advantages of cloud technology for storage is that it requires no spending on hardware and no committing to paying rent on physical premises, so startups can stay lean and sleek. 

2. Automation

Another way that startups can save money is by not committing to hiring too many staff and one of the benefits of cloud technology is that you don’t need your own staff to manage storage solutions because everything can be automated or managed by your provider.

This makes cloud storage the ideal solution for a business that needs to avoid committing to paying too many salaries early on, as well as ensuring that only real experts are being used to manage the technicalities of your storage solution.

3. Flexibility

Physical storage solutions might have worked in the old days of business but startups have different needs. There’s a good chance you may all be working remotely rather than from one location, with staff potentially scattered across the country or even the globe.

So you need everyone to have access to the right documents at the right time and this is best achieved through cloud storage for startups. 

4. Security

Using blockchain cloud storage from Cert-Trace® means having safe and secure technology working to ensure your startup’s most sensitive documentation and data is protected from hacks.

Startups can be at particular risk of this kind of security breach affecting their intellectual property, especially if money hasn’t been spent on security.

Blockchain technology provides a decentralized and tamper-proof system, making it virtually impossible for anyone to alter or access documents without proper authorization.

5. Compliance

Regulatory challenges were one of the biggest risk factors for startups and this is another of the signs your business needs cloud data storage.

Cloud storage providers offer much greater security protection for your documents than the traditional methods and this helps you to comply with relevant industry standards and regulations. 

6. Recovery and backup

Disasters happen and as a startup you could be more at risk of not being able to bounce back than a more established business.

However, if you choose cloud storage you will be paying for comprehensive disaster recovery solutions and minimized downtime, ensuring that your business can recover and maintain operations.

7. Scalability

When you are first starting your business, it’s easy to find solutions that work for you in that moment but you can find that they start to be less effective as you scale up.

This leaves you needing to go through the inconvenience of finding a replacement and switching over, but cloud storage solutions can scale up with you.

8. Connectivity

Using legacy-style storage solutions can mean that crucial documents exist in a vacuum, but cloud storage offers the ability to connect to and integrate with other software solutions.

This makes it easier to share documents with colleagues and clients safely and securely, so there are no unnecessary hold-ups.

9. Competitive advantage

Being outcompeted is a major risk for startups, especially in very competitive markets. We’ve seen a huge shift to cloud-based storage in recent years, so if you are opting for a more dated storage solution, you risk being left behind before you’ve even really started out.

As a startup, you’re in the perfect position to start out with cloud storage without needing to move your documents over to it.

10. Synchronization

One major issue with having teams working remotely with the wrong kind of storage solution is that multiple versions of a document can be created.

This can lead to confusion at best and serious compliance issues at worst but can be avoided using cloud storage software where any changes can automatically be synchronized.

Meanwhile, essential documents can be protected from being accidentally edited or deleted.

Starting your own business is a risky move, which is why it comes with such big rewards, but you’ve now seen why cloud storage is a must-have for startups, so why not get in touch with our Cert-trace® team at to find out more? 

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