Originally published in The Canberra Times

By Bruce Billson

Digital tools have transformed the economy and the ways in which we do business.

There's much to be gained for a small or family business deepening its digital engagement.

But it is not without cost, careful consideration, risk management and the need for cyber security care.

Whether it be digital platforms that have changed the way consumers find and buy their goods and services; the remarkable rise in digital payments; how smart systems are helping us with the "business of running our businesses"; or even how regulators expect business to interact with them and meet ever-growing compliance obligations, digital engagement is unavoidable.

For many this continuing digital transformation is irrevocably changing just about everything in commerce.

An aspiring entrepreneur can present a new product to countless customers without a multi-year lease on premises or an expensive marketing campaign to find potential customers.

Accounting software today offers so much more than replacing the old shoebox of receipts or clunky spreadsheets.

Accurate invoices can land with business customers at lightning speed through e-invoicing, and electronic payment systems allow for that invoice to be paid (hopefully) in minutes, with no more lame cheque-in-the-mail excuses.

AI tools are helping many small businesses streamline "admin", support compliance, automate routine tasks and even help time-poor business owners organise their busy lives - so more time and attention can be given to the joy and value-creating reasons for being in business in the first place.

For many, AI is a new world. Thankfully, there is support for small businesses thinking about what opportunities AI may present.

The deeper the digital engagement of a small or family business, the more likely the business will be growing revenue, creating jobs, tapping into export markets and innovating new product and services, according to a long line of research.

That's why governments invest in programs that can support small businesses on their digital journey. The Australian government's Digital Solution program is a leading example.

But it is not all sunny upside. There is a time and resource commitment involved to make sure that the digital investment a small and family business owner is considering is right for the business and its needs, ambitions and operating context.

There is no one-size-fits-all approach here. Trusted advisers can play a key role in making sure technologies and systems being considered are right for the particular business. We have published some handy guidance on choosing and working with advisers who help with digital marketing.

Dipping a toe into a digital marketplace may well present your product or service to a vast aggregated set of customer eyeballs. But this is also the case for your competitors and without something quite different and unique, it can quickly become a race to see who is cheapest.

Beyond being aware of potential margin squeeze, your business also has to be alert to the terms and conditions of the platform. Fulfilment support is great but if your stock isn't moving, prepare to go and collect it, or pay for its return or destruction.

Disputes between small and family businesses and digital platforms and service providers is the fastest-growing category of challenges leading to business reaching out to ASBFEO for assistance.

The disputes we help with include search engine advertising accounts being suspended or hacked, linked credit cards being compromised and falsely used to promote bogus content or spam ads, losing control of social media channels, delivery platforms deactivating driver accounts or payments, incentives not being paid, tradespeople being charged for leads that lead nowhere, subscription services that cannot be suspended, false charge-backs leaving sellers without payment or their product, overseas competitors claiming copyright breaches forcing platforms to take down your content, unilateral changes to terms and conditions and distribution platforms charging for services not asked for. Just to name a few ...

It is encouraging that the Parliament is considering legislation to enable the government to impose obligations and specific duties on financial institutions, telcos and digital platforms about preventative measures they need to take to ensure users of their systems are protected from cyber fraud and threats.

This is a good step that would be improved by the codes that will be enacted to bring the new law into operation providing for more realistic compensation for financial loss for those harmed (like those operating in the UK) and not just if it is determined the prevention steps a provider has taken are inadequate.

There should also be an obligation on these providers to have mechanisms to quickly resolve disputes and remedy cyber harm so that the small and family businesses that rely on these services can get back to business.

While these critical service providers have a key role to play alongside digital system, app and software designers and suppliers, small and family businesses themselves have a vital role - even if only viewed as self-interest.

A cyber security incident can devastate a small business. The Australian Cyber Security Centre (ACSC) tells us that the average cost of cybercrime for an impacted small business increased to $49,600 for the most recent full year of data. For too many, such an incident may be and enterprise-ending event due to the cost, loss of control of business systems or loss of customer confidence.

Programs like the Australian-government-supported, COSBOA-delivered Cyber Wardens can build workplace awareness and some cyber first aid skills. The ACSC provides some useful guidance on steps to safeguard a small business from common cyber security threats.

The new Small Business Cyber Resilience Service is also an excellent resource providing one-on-one support to small businesses and sole-traders looking for help to build cyber resilience or recover after a cyber incident.

Securing the benefits of a deeper digital engagement by small and family businesses is well within reach for most, albeit with support and trusted advice. Making sure we guard against the risk presented by scams and cyber-attacks will take the best of all of us, and for small business to play an active and engaged part.

As a business owner, we wouldn't leave the front door of our unattended premises wide open all night with the lights on and our valuables sitting on the front counter. We take the steps to protect our interests.

So it also is for cyber security - there are simple and inexpensive steps small businesses can take to improve their cyber security and resilience. As a minimum, please:

• Enable multi-factor authentication
• Change passwords frequently
• Update your software (routinely or by activating automatic updates)
• Back up files and devices regularly
• Listen to your spidey senses (if it seems suss, it probably is)

These steps (and others we have shared) will help to ensure that while small businesses wisely pursue deeper digital engagement, risks are mitigated and managed where they can be and that help is available.