How to Start a Data Recovery Business
A data recovery company helps its client restore data they must have lost, mostly from their electronic devices. The rate at which people accidentally delete information from their electronic gadgets makes it impossible for data recovery businesses not to thrive. Starting a data recovery company will only take a few steps which you will find out in this post. Also, you’ll discover just how much you should expect to make from this venture and what is required of you in this industry.
Data is the heart and soul of any business, and the bigger the company, the more vital data is to its existence. As data is important to both private and governmental organizations, so is it equally important to individuals.
Even though modern technology allows one to store data on the cloud, there’s still a need to have some stored in a drive or directly on electronic devices. Data can come in the form of evidence to prove a deed, an authorization to access other data, or simply a harmless collection of recorded activities. It takes an awful lot of time, and sometimes a lot of money, to get data, and the loss of such data cannot be taken lightly; people go extra lengths to retrieve them.
Why data recovery is a profitable venture
The importance of data to an individual, or an organization, makes people do everything within their power to retrieve lost data, and it can be priceless. The following reasons show why starting a data recovery company is profitable.
Data recovery companies make huge sums
Since tons of people lose important data every single day, data recovery companies receive clients regularly; this increases their chances of making a profit. The average data recovery technician earns between $120 and $300 per hour depending on the nature of the task ahead.
People lose all sorts of data; some are vital to the success of their business, some hold sentimental value, while some are secret activities they want no one to find out. As a result, people consider the recovery fee a small price to pay whenever they get the bill from data recovery companies.
The demand for data recovery is high
There is an incredibly high demand for data recovery, which is why this business is lucrative. People lose data on a daily basis, including companies, and some of these previously stored data can be too valuable to lose. From family photos to criminal evidence, people will move mountains to get them back. Data recovery companies are sought after because they are perhaps one’s last hope of regaining lost information.
In addition to deleting files from a mobile device, computer, or an external drive, any damage to the device can also lead to loss of data on it. Therefore, each time a data storing device gets broken, and the data in it gets altered or lost, the owner won’t only think of repairing the broken device; he or she would also try retrieving the data from it.
The problem data recovery companies face
Tough competition
Data recovery is a good business to start and it is a booming industry, which is why you should expect stiff competition as you start your firm. There are many data recovery companies around and they are all doing their best to keep their customers satisfied; it won’t be easy to top them.
Some established data recovery companies have all the tools and manpower to cater to their customers’ needs and they keep improving, which means you’d have to make extra efforts to topple them. Nonetheless, the competition can make you better if you patiently and tactically plan your business strategy. You have competition on all sides; other data recovery companies, small-time data recovery technicians, and data recovery applications.
The influx of data recovery apps
If not for the many easy-to-retrieve data apps on the market, data recovery companies would be earning perhaps more than double what they make. There are apps these days that you can use to get back lost or deleted data depending on a few factors, but yes, they do exist.
If not for these apps, everyone would need to visit a data recovery center every once in a while for the slightest problem. These data recovery apps get more advanced with each upgrade; meaning they perform more tasks than before. This ability limits people’s dependence on data recovery companies, and some of the apps are free.
Your data recovery company’s responsibilities
A lot is expected of a data recovery company, which is why customers pay so much. The responsibilities of a data recovery center go beyond just retrieving lost data; they have to do more than just that because of the sensitivity and importance of the contents of the files they are to restore. It is expected of every data recovery center to be capable of the following:
Restore data, repair and replace broken storage devices
The two things customers would patronize your company for in most cases is to restore their lost data or repair their storage devices. More than half of your clients will come to you to retrieve their lost data. The data may have been lost on their phones- through factory reset or through deleting of any form.
There are different techniques to fix the problem, and each issue will take a different time to resolve. You will put all the conditions for restoring the data into perspective and then get the data back for your client. Some data recovery centers don’t do a great job of recovering lost data, which is why you must have the best engineers working for you.
It takes expert storage device technicians or computer hardware engineers to carry out such tasks effectively, especially when it comes to repairing storage devices. There is no excuse for not being able to expertly fix broken data storage devices since that’s what your company prides itself on. To successfully carry out these activities, you must be sure to have capable technicians at your disposal. They will assess the faulty device, figure out the cost of repairing the device, and replace the broken pieces.
Be discreet
Anything can be on a storage device. There are incriminating data that could ruin an individual or a company which for some reason people care to save on their storage devices. Some people have habits that they dare not let the world know about otherwise their marriages, political aspirations, or career goals could be over.
Most of the time, these files will be seen by the technician operating on the device to restore the data upon repair. Even when they don’t have to open any file to restore it completely, they would at least get to see the title of the files. And in many cases, the client would be specific about what file they want to retrieve; they’ll have to tell the technician the name of the file
Knowing that these files of which you have temporary power and access can be the death of your client, you owe it to them to be discreet. You must make it a policy that anything you find does not get out. However, in cases of criminal activities-especially when the police or law enforcement agents are involved- you might be required to give details of the data you retrieved. Details of some criminal activities that can be found and if need be reported are child pornography, illegal arms trade, human or sex trafficking, and fraud, etc.
Advice clients
Besides restoring lost information on a drive or mobile device, data recovery technicians also have a responsibility to advise the customers on different issues. When a customer comes in with their faulty data storing device; after hearing the customer’s complaints, you or your technician have an understanding of where the problem lies. From their explanation, you can tell what they did wrong which led to the data’s loss; it would be your place to advise the client on how they could have avoided the error.
After you’re done with the job, you must also give the customer tips on the best ways to handle the device going forward. Even though you want to make sales, it is honorable to look out for what’s best for your customers.
Some customers might need to get a new storage device or a reliable vendor to safely store some of their data with; they might ask for your opinion. Whatever options you give them will not be taken lightly, and they will always need you for more advice- be available to give it.
What determines how you set up your data recovery firm
You can never go wrong in choosing to start a data recovery company, but before you take the vital steps to open your office, make sure you consider a few aspects of the business. These factors will determine how much success you should expect from the venture the moment you start.
The location
The site of a business is perhaps the most important factor that can determine how it fares in the industry. A data recovery firm is not the type that can be run virtually since the data’s storage device must be thoroughly assessed by a technician. The location of a data recovery center must first and foremost be accessible to both vehicles and pedestrians.
Also, a data recovery center must be located where people can easily gain access to it, preferably a centralized location. The competition is already stiff, so, the last thing you want for your company is to make it more difficult to be seen. Also, consider a location that its inhabitants will be most likely need to recover data. Those who amass data on a regular basis, whether for business or fun, are most likely to constantly access their data and lose some by accident in the process.
Those who fit this description the most are business people, young adults, and middle-age. A data recovery center should target corporate organizations, growing businesses, and colleges or higher institutions. The most successful data recovery centers are the ones who operate in their vicinity.
The severity of the damage
You’ll be remiss to start operating your business without first considering the severity of the damage done to the storage device or lost data. The type of damage done will determine how long it will take to retrieve the data.
In addition, you will have an idea of what it would cost or what method would best solve the problem by knowing how much of a problem there is. At the end of the day, the amount you’ll charge will be as a result of the methods you applied, the tools you used, and the time taken to get the data restored. Without knowing how intense the situation is, you will never truly know what to do.
Consider Franchising
A good business idea can easily be trumped by a lack of sufficient funds to either start the business or compete with rivals in the industry. Every serious aspiring entrepreneur knows that they must have a reasonable capital or well-planned budget to start a business but sometimes they can’t keep up with the demands of the business. For this reason, one might need to consider buying a franchise.
Buying a franchise is a good idea when the competition in the market is tight and the business owner wishes to speed up the growth of the business. A partnership of this nature will provide the necessary assistance you need to start a data recovery business. The franchiser will assist the franchisee, which is you, in different ways to keep the business running and maintain the standards of their preexisting franchises and branches.
Data recovery means that a client is placing a high level of trust in the recovery company; hence, renowned data recovery companies have loyal customers. You would be tapping into that customer-base if you choose to buy a franchise.
Starting a data recovery company
There are a few things to acquire and also understand, before having a proper data recovery establishment. To establish a successful data recovery company means that you’ll need to hire people; however, you’ll need to have some basic IT skills.
The skills you acquire might not be sufficient to troubleshoot faulty devices but it will help you know the basics of the business and all the necessary aspects of data storage devices. For example, when placing an order for data storage hardware, or software plans, you’d know what exactly to look for before making a purchase. Other vital steps to starting a data recovery company include the following:
Get an education in data recovery certification
The technicians, including you, must possess a formal knowledge of how to work with electronic devices. There is a plethora of colleges and universities that offer degree programs in these fields, which will make one qualified to work on electronic devices and software.
In this field, whether you will be directly responsible for recovering lost data for your clients or you’ll hire technicians, you must have the appropriate certifications. It is standard practice for a data recovery professional to not only have a degree in data recovery-related fields but to also have certification from a recognized institution.
There are different types of certifications a data recovery technician can bag, and there are also various renowned institutions that one can get training and certification in the field.
The Information Assurance Certificate Review Board (IACRB) is one of the most recognized bodies who offer certifications to skilled data recovery technicians. An aspiring technician would first undergo an online test to be considered for the certification. Some of the certifications one can get from IACRB include Certified Data Recovery Professional (CDRP), Certified Mobile Forensics Examiner (CMFE), Certified Security Awareness Practitioner (CSAP), Certified Mobile and Web Application Penetration Tester (CMWAPT), among others..
Plan your data recovery company
With proper planning, your company can reach great heights no matter how humble its beginning may be. Right after you must have formed the idea of starting a data recovery firm, you should document every detail regarding the company. The direction in which you wish the data recovery company to follow and important aspects of the company must be clearly stated.
The possible challenges you’ll face, how you hope to overcome them, and your overall expectations for the business must be noted as well. State what it would cost to set up the company, where would be the best location, and why. Also document how long it would take and how many people you’ll need to achieve your goal.
Your budget must be clearly stated in your plan after making your feasibility studies. If your budget will not be enough to get you started, that’s when you start thinking of getting a loan or funding from other sources. This business plan will increase your chances of getting financial assistance from investors.
Secure the permits
A data recovery company will need to get permits to operate wherever it is located. These permits are issued depending on the state or region of the business’s operations. To be aware of what it would take to get it done with ease, meet the government department responsible for granting permits to operate such businesses in the vicinity. You will need to get a license to be a data recovery specialist.
The seriousness of this business means that you should have legal backing. You must have a lawyer on standby in case something goes wrong. Also, there might come a time when law enforcement agencies will be interested in one of your clients, and since anything you do or say might be used against you in court, you must first consult your lawyer. Your legal practitioner will also help you make other vital legal business decisions.
Procure an office or a workshop
Although there are some services you can make available to your clients online like making inquiries and booking appointments, but the real deed is done at the office. A spacious office with different compartments will suffice.
Skilled and educated persons are required to work on electronic devices, especially when it comes to recovering lost data. Before you hire any technician, make sure they have the required skills and certifications fit for the job. The experience will be a plus for any new recruit, but the basic skill set and knowledge of data recovery software are the most important things to look out for. You must make sure to enlighten the new intakes on the importance of good customer service, as well as discretion when dealing with customers.
You can’t run a data recovery company without the right data recovery tools. No matter how talented a data recovery technician is, he or she will use some sophisticated tools to retrieve lost data. The most dependable tools and applications are sold directly from the manufacturer and they are not common among the average electronic device owner.
Once you’ve got everything set, start telling the world about your establishment and open your office doors. Promoting your company is vital if you want people to seek your services. Start with the cheapest, yet effective, means of marketing available to you and have an online presence where you can both advertise your services and connect with your clients.
Make data recovery apps
Since data recovery apps will never go out of the picture, it is best if you join the market. It may not be what you must do immediately you start your company, but it should be what you plan for as your company kicks-off. There is a market for applications and software; whether you’re making them for free or you want to charge an amount for them, you’ll be making a profit. A data recovery app does not have to solve every lost data issue; it can be limited to some simple tasks.
Conclusion
Data can be difficult to gather but alarmingly easy to lose. Professionalism is the key to offering the best service to your clients. Both you and your employees must know the difference between invading a customer’s privacy and looking for ways to troubleshoot a faulty device.
The competition is tight, so you must make sure to provide the best customer service in order to keep your clients. With the right technicians and the best software, you’ll be running a thriving data recovery company in no time.
