Is data recovery business profitable?

Cloud storage is a miraculous invention and widely used in the present. About 90% of businesses are on the cloud. This is because data are extremely valuable and no one wants to lose them. Though the cloud is occupying the storage market gradually, physical hard drives still exist. When hard drives fail, we go to a data recovery company to restore all data. But, is data recovery business profitable in the age of cloud storage? Will it survive in the future? Stay reading to explore more.

Is data recovery business profitable?

A study shows that the success rate of data recovery was 97% after the ransomware attack. This is a revolutionary triumph. The data recovery business requires thorough knowledge and expertise. Though it’s not easy to promote awareness among people about data recovery, this is a rapidly growing industry. A report published by “Report Buyer” says the data recovery service market will reach about $4.1 billion by 2024, which is 12.9% of market growth. The data recovery business is undoubtedly a profitable business because the concern of data safety is rising. It will be profitable in the future as well if recovery experts can adapt to technological changes.

Challenges of data recovery business

Like all other businesses, the data recovery business has both internal and external challenges. All endeavors of a data recovery company can be ruined if they fail to overcome these challenges intelligently. The usage of cloud storage is becoming popular continually. Service providers fully control cloud storage and there is nothing to fix. This is one of the biggest challenges in this industry. Besides, the sector is very competitive. This does not mean the industry is dying. It is changing like other IT sectors. If you believe challenges are new opportunities, your business will survive.

How to start a data recovery service in a profitable way?

Any business can be profitable if the right procedures are followed. Each business has a unique market, marketing plan, and challenges. Before you start a data recovery business, you need to study them deeply to avoid obstacles as much as possible. Here is a simple data recovery start-up guideline you can follow.

☑ Identifying a niche

You must have realized that data recovery is already a business niche. Then, why we are talking about picking the right niche? It is because data recovery services can be categorized in different micro-niches. There are several data recovery services such as hard drive recovery, optical recovery, tape recovery, RAID recovery, removable recovery, and more. You can start with the one you have deep knowledge and expertise. You can even sell data recovery tools or consultancy services.

☑ Market analysis

Why are some people so good at business? The secret behind their success is the market investigation and they truly know how to do it. For instance, a hard drive clicking is a widely known hard drive issue. If you are an expert at solving it, then you have a market. You need to find out a problem that people are suffering but the solution is infrequent. Besides, gathering and analyzing data relevant to the issues will boost your business.

☑ Invest in the best tools

The success and reputation of the data recovery business depend on the percentage of data successfully recovered. People will bring their damaged drives to you with an expectation of full data recovery. For the highest user satisfaction, investing in the right tool is crucial. Cheap data recovery software often fails to recover corrupted files. On the other hand, premium tools are renowned in the market for years because of successful data recovery. Though they can be expensive, the outcome is phenomenal. You can check online what types of financing are available for your new company, and from there, apply for a loan that will help acquire better software and specialized tools to offer the best service possible.

☑ Get certified

In the IT industry, holding a professional certification is a trend. You might have years of experience, but a certificate assures your trustworthiness. Take it as an opportunity rather than impertinence. Studies have found that clients feel more comfortable with working professionals who are certified. There are several certifications in data recovery such as CASS, CEPT, CPT, CREA, etc. You can admit to a course or have a certification that matches your skill.

☑ Set appropriate price

Most data recovery labs charge 100 to 300 USD per hour on average. However, it depends on many factors, including the lab location, expertise of engineers, recovery success rate, and more. Should you copy others’ prices? Absolutely not. Focus on the pricing strategies and find out the most suited one. You can set the perfect price of your service based on cost, market, and dynamic models. Cost-based pricing is a simple and effective pricing method that seems appropriate for most start-ups.

☑ Find out the perfect location

The place is one of the beams of the seven Ps of marketing. If your business is in the right place, it will survive and grow day by day. A business place involves budget, demographics, competitions, and a lot more things. Besides, consider the business opportunities and future of the market. Never rent an office because your competitor did it. Note that renting an office is very costly and long term planning. You need to be wise to discover the perfect business location for data recovery services.

☑ The Marketing plan

You should implement both physical and digital marketing for your data recovery business. The best way to grab peoples’ attention is to promote the importance of data security and how you can help. Educate potential clients and create a demand. Try to attend events, seminars, trade fairs, and meet managerial persons for direct marketing. Besides, don’t neglect the power of digital marketing. You can write articles on websites, list your brand on business directories, and publish commercial ads on social media platforms. Your focus should be creating demand for your service, no matter how you promote them.

Conclusion

The data recovery business is still profitable and a growing business niche. The biggest challenge in this industry is the rapid technological changes. But, smart data recovery company owners will exist by modifying their business models.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes