What is a Virtual Private Network for Small Business?

Summary: Data security is no longer a luxury — it’s a necessity. Small and midsized businesses (SMBs) were once thought to fly under the radar but are now frequent targets of cyberattacks. One of the most effective and affordable solutions to protect data and secure communications is a virtual private network (VPN). Learn why every small business should use them to protect network data and business communication.

What is a Virtual Private Network?

At its core, a VPN is a technology that creates a secure and encrypted connection over a less secure network, such as public WiFi or home networks. It acts like a “tunnel” between connected devices and the websites they visit. If a cybercriminal intercepts a VPN-protected communication, they would only see scrambled words and files. VPNs are essential for network cyber security wherever employees go online.

Small businesses should use VPNs to protect:

• Sensitive customer data
• Internal communications
• Remote employee connections
• Resources stored in the cloud

By setting up a virtual private network, businesses can ensure that even if the data is intercepted, unauthorized parties cannot read it.

Why Should Small Businesses Consider VPNs?

Many small business owners wonder whether they need this level of security. The short answer? Yes. Here's why:

• Small businesses are more vulnerable because they often lack in-house IT security teams
• A data breach could cost over $100,000 in recovery fees, direct theft of funds, legal actions and reputational harm
• With employees working remotely from unsecure WiFi, secure access to internal systems is critical

Understanding and setting up a virtual private network can help protect a business from serious financial risks and cyberattacks.

What Are the Types of VPNs?

When exploring types of VPNs, small business owners have several options. Each type suits different use cases and security needs:

• Remote Access VPN — This allows employees to connect to the company’s private network from remote locations, perfect for work-from-home setups
• Site-to-Site VPN — Ideal for businesses with multiple offices, it connects one entire network to another, maintaining internal communications securely
• Client-Based VPN — Installed on individual devices, allowing employees to use an application to establish a secure connection to the business network
• Cloud VPN (VPNaaS) — A scalable solution for businesses that use cloud services. Managed by third-party providers, it's excellent for minimizing on-site infrastructure

When choosing a VPN, consider the best fit based on company size, number of remote employees and long-term growth plans. IT providers can make recommendations based on how you do business and which devices connect to the network remotely.

What Should Companies Know Before Setting Up a Virtual Private Network?

Before setting up a VPN, think about a few essential factors:

• Understand Your Business’s Needs — Does the company have remote workers? Multiple locations? Sensitive client data? Pinpointing these will help determine the type of VPN to deploy
• Choose the Right VPN Provider — Look for one that offers business-grade encryption, reliability, customer support, and scalability
• Hardware vs. Software VPN — Decide whether a hardware appliance (ideal for large offices) or a software-based solution (more affordable and flexible for small teams) makes more sense
• Compliance Requirements — What industry and regional regulations apply, such as HIPAA, GDPR or local city regulations? Make sure the VPN supports compliance.

Being proactive about setting up a virtual private network ensures it effectively serves operational and security goals.

What Are VPN Best Practices for Small Businesses?

Using a VPN isn’t a set-it-and-forget-it operation. SMBs need to follow VPN guidelines to ensure ongoing security and performance:

• Educate Your Team — Train employees on proper VPN use, what cybercriminals are looking for and potential cyber threats. Employee training is critical to maximizing the effectiveness of a VPN
• Regularly Update VPN Software — Patches and updates fix known vulnerabilities that hackers often exploit
• Use Strong Authentication Methods — Incorporate multi-factor authentication (MFA) to reduce unauthorized access. A code is sent to another device, preventing hackers from logging in without the code and alerting you to attempts on important accounts
• Limit VPN Access — Not every employee needs full access to all systems. Use role-based access to minimize risk
• Monitor VPN Usage — Use analytics and logs to track unusual activity or unauthorized login attempts

Integrating VPN best practices into employee operational requirements can significantly improve your cybersecurity posture.

How to Ensure the Stays Secure?

Installing a virtual private network is a smart first step, but maintaining a secure VPN requires continuous efforts such as:

• Encrypting Data End-to-End — Ensure the chosen VPN offers military-grade encryption to secure all transmitted data
• Avoiding Free VPN Services — Free VPNs often monetize by selling customer data. Free versions may log activity and sell the data, which undermines the purpose of having a VPN. Use a VPN recommended by IT professionals
• Testing Regularly for Weak Points — Use penetration testing or hire cyber security consultants to assess vulnerabilities
• Backing Up VPN Configuration Files — Keep secure copies offsite in case of system failure or malware attacks. A managed services provider can perform this task
• Incorporating Firewalls and Antivirus Software — A VPN is not a complete security solution. Combine it with other tools for layered security.

Using multiple layers of data security best practices makes it less likely a breach will occur, or reduce the scope of damage if one does occur. Protected and properly configured networks make recovery possible after a cyberattack.

What Are the Business Benefits of Using a VPN?

Having defined the correct type of VPN and VPN best practices, small businesses have a lot to gain:

• Secure Remote Access — With secure remote access, employees can work from anywhere without compromising data, even on risky public WiFi in hotels, terminals and coffee shops
• Bypass Geo-Restrictions — Access services or websites that may be restricted based on location, useful for business travel outside the U.S.
• Data Privacy and Anonymity — VPNs hide IP addresses and online activity from potential threats
• Improved Client Trust — Clients and connected business partners will appreciate the commitment to strong data security
• Cost Efficiency — Avoid costly data breaches (now averaging $115,000 per incident) and reduce the need for additional expensive on-site security hardware

For SMBs, the return on investment from a virtual private network adds up quickly.

How to Choose the Right VPN Solution for Any Business?

Choosing the right solution depends on multiple factors:

• Business Size — Smaller teams might go with cloud-based VPNs; larger operations may need hardware-based solutions. Assess the number of devices needing protection
• IT Expertise — SMBs without an in-house IT team should look for VPNs with strong customer support. A managed IT services provider can help select an appropriate solution
• Budget — Balance cost with features. Don't sacrifice security for savings
• Scalability — Pick a solution that grows with your business

When in doubt, enlist the services of an IT professional who understands the types of VPNs and various business uses.

Is It Time to Invest in a VPN?

Any business owner or manager who’s asked, “Why do I need a VPN?” or “Should I be setting up a VPN for my business?” should come to one conclusion: Yes. Start the process by assessing needs, learning the types of VPNs and understanding best practices. Implementing a VPN could be one of the most valuable cybersecurity decisions.

“What is a Virtual Private Network?”

A VPN is a way to funnel network communications, either internal or across the internet, through a dedicated server, providing the digital “tunnel” that shields traffic from outside view. Using one provides a layer of privacy and security to business communications and web surfing. Think about the type of data a cybercriminal could discover if company communications were intercepted; fund transfers, account logins, sales lists, client financial and credit card information, business plans, proprietary data, employee human resource data, health information and more.

Why Do SMBs Need a VPN?

Cyber security threats aren't slowing down, and small businesses can't afford to be unprotected. Working with professional IT experts helps protect data in the office and for remote workers. Following best practice protocols and choosing a solution that fits a company’s unique needs protects data and builds trust, improving performance and creating a secure digital future.

Schedule a call with your IT provider to discuss adding VPNs to the company network and all network-connected devices (phones, laptops, tablets) to add an important layer of data security.