Every year, small businesses find themselves in the crosshairs of cyberattacks more often and suffer the consequences of data breaches. According to recent data, 58% of all reported cyberattacks in 2020 targeted small businesses. Nearly 60% of small firms leave business within six months of a cyberattack.
Yet readiness is startlingly low when meeting the U.S. Department of Defense’s Cybersecurity Maturity Model Certification (CMMC) requirements. In fact, a study found that only 4% of DoD contractors are fully prepared to satisfy even the baseline cybersecurity standards.
If you’re a small business that hopes to bid on DoD contracts, CMMC compliance is not optional. If you wait too long to comply, you could lose contracts, have to pay big fines for breaches, or even be kicked out of supply chains.
In this article, we’ll dig into why CMMC matters now more than ever, what the real costs of waiting look like, and common misbeliefs that slow small businesses down.
Why Small Businesses Can’t Ignore CMMC in Today’s Defense Supply Chain
Small businesses are the backbone of the American economy and play an essential role in the defense supply chain. However, many small businesses may not realize the impact the Cybersecurity Maturity Model Certification (CMMC) could have on their operations. CMMC is a unified standard for implementing cybersecurity across the defense industrial base and is designed to protect sensitive government data.
But why should small businesses take CMMC seriously? Here are reasons why:
- The Department of Defense is the largest buyer in the world, and SMBs are an integral part of the supply chain.
- Small businesses that comply with CMMC requirements can bid on DOD contracts.
- Non-compliance with CMMC could lead to losing business opportunities and potential revenue.
- CMMC compliance can also increase trust and credibility with potential customers, not just within the DOD.
- CMMC compliance can also help small businesses improve their cybersecurity practices.
- If you don’t follow the rules for CMMC, the DOD will punish you with fines and penalties.
- The DOD is taking steps to make sure that contractors know what the CMMC standards are and how to meet them.
So, companies must follow the steps needed to become CMMC compliant if they want to keep doing business with the DOD and maybe even get other users who care about cybersecurity.
The Real Cost of Delaying CMMC Compliance Is Higher Than You Think
Missed opportunities and disqualified bids
Defense spending is increasing, and the DOD actively seeks new contractors to support its initiatives. The Government Accountability Office (GAO) reported that the DOD had awarded over $755 billion in contracts in the fiscal year 2024 alone. This presents significant business opportunities to secure lucrative contracts and grow their revenue.
Small businesses may be barred from bidding on DoD projects without CMMC certification. This means they will lose access to billions of dollars in defense spending each year. Therefore, small businesses need to work towards obtaining certification to remain competitive in the government contracting market.
Comparing compliance costs vs. breach fallout
A major concern for businesses is the cost of obtaining CMMC certification. The process can be time-consuming and expensive, requiring significant technological, training, and security infrastructure investments. However, the cost of non-compliance can be even more devastating.
Companies that have a data breach may have to pay big fines or go to court. They may also lose trust of customers and have their reputation damage. The fallout from a breach can far outweigh the cost of compliance. The average cost of a data breach jumped from $4.45 million in 2023 to $4.88 million in 2024. Companies need to take data protection very seriously now that the cost of a data breach has gone up by 10% in just one year.
Procrastination leads to rushed and costly fixes
Procrastination can have serious consequences for data compliance. Companies that don’t update their systems or put in place the security steps they need to are more likely to have data breaches.
Waiting until a breach occurs to address data protection can lead to rushed and expensive fixes. Companies now face the added costs of damage control, regulatory fines, and potential lawsuits. Also, businesses can be left open to future attacks if they try to fix a data breach too quickly and make mistakes or not finish the job.
Falling behind competitors who are already preparing for CMMC
Forward-thinking businesses are already marketing their readiness to primes. These companies are positioning themselves ahead of the curve by investing resources and time into becoming CMMC certified. Companies that fail to keep up with this industry standard face the risk of being left behind by their competitors.
If you delay, you risk being left behind as others position themselves as “safe and compliant” partners. Companies that aggressively pursue certification will have a competitive advantage in the defense contracting. They will be able to get bigger orders from the government and maybe even work together with other businesses that need CMMC certification.
Common Myths About CMMC That Keep Small Businesses Stuck
“CMMC is only for big companies with huge budgets”
Many small business owners mistakenly believe CMMC is only relevant to large corporations with deep pockets. Even the smallest subcontractors handling FCI or CUI must comply. The framework was deliberately scaled to include smaller players. With proper preparation and a comprehensive approach, small businesses can achieve compliance without breaking the bank.
“We don’t deal with sensitive data, so we’re exempt”
Many businesses underestimate the type of information they touch. It’s not just classified government data that falls under CMMC requirements. Any information that the US Department of Defense (DoD) considers sensitive, including technical data and intellectual property, must be protected. Even if your company only has indirect involvement with the DoD supply chain, compliance is still required.
“It’s too expensive to get started right now”
Delaying actually makes it more expensive. CMMC compliance requires resources, but ignoring the process is far more costly until a contract is at risk. Multi-factor authentication and safe backups are two 1 practices that any business can start today and won’t cost much. Then you can make a budget to get to a higher level of compliance.
“We’ll handle it later when it becomes urgent”
Delaying compliance until it’s urgent puts your business at a disadvantage. You will have to work hard to catch up, and you could miss out on jobs or lose ones you already have because you aren’t following the rules. You also risk facing legal consequences, which can be costly and damage your reputation. Instead of rushing to comply when it becomes urgent, take steps towards compliance now.
Practical Steps Small Businesses Can Take to Prepare Without Breaking the Bank
Start with a simple cybersecurity gap analysis
A gap analysis compares your current practices to CMMC requirements, showing exactly what needs fixing. You can conduct this analysis yourself or hire a professional to do it for you. The goal is to identify areas where your business is most at risk and prioritize addressing these issues. Some common areas where small businesses may have gaps include:
- Lack of secure network infrastructure
- Weak access control protocols
- Poor patch management practices
- Inadequate employee training on cybersecurity best practices
Taking the time to complete a gap analysis and address these areas can greatly improve your business’s cybersecurity posture.
Adopt affordable tools and practices (MFA, backups, patching)
Implementing strong cybersecurity measures can often be perceived as costly and complex. However, many compliance basics can be done with low-cost or free tools. For example, enforcing strong passwords, updating systems, and enabling multi-factor authentication (MFA) can go a long way in protecting your business from cyber threats. When implemented correctly, these are relatively simple measures that can reduce the risk of cyber attacks.
Invest in employee awareness and training to reduce risks
Human error is often the weakest link in cybersecurity. Employees may inadvertently fall for phishing scams or unknowingly download malware, risking the security of your company’s data. You can invest in employee awareness and training programs to educate them about potential cyber threats and how to prevent them.
These programs can include:
- Regular training sessions on cybersecurity best practices.
- Simulated phishing attacks to test employees’ awareness and provide feedback.
- Employee handbooks or guidelines on how to handle sensitive information.
- Mandatory password changes and the use of strong passwords.
- Encouraging employees to report any suspicious emails or activities.
- Providing resources and support for employees to work from home securely.
- Regular updates on current cyber threats and how to stay protected.
By investing in these programs, companies can significantly reduce the risk of a cyber attack caused by human error.
Partner with managed service providers for expert support
Organizations with limited resources or expertise in cybersecurity can benefit from partnering with managed service providers (MSPs). These specialized companies offer security services, including threat detection and response, vulnerability management, and network monitoring. Companies can access expert support without additional hiring or training by outsourcing these tasks to MSPs.
Position compliance as a long-term business advantage
Being CMMC-ready strengthens your brand’s credibility, protects client trust, and opens new growth opportunities. Compliance becomes a long-term business advantage to stay ahead of the competition and win new clients. Companies that prioritize compliance can confidently market their security posture as a differentiator. When clients see that your business is CMMC-compliant, they know their sensitive data and information will be handled with the utmost care and security.
Conclusion – Can You Afford to Delay?
For small businesses in the DoD supply chain, CMMC isn’t optional; it’s the price of admission. Every month you delay means lost bids, higher compliance costs later, and leaving your business vulnerable to attacks that could shut you down for good.
The smartest move you can make right now is to partner with experts who live and breathe compliance. Sync Resource helps small businesses overcome confusion, close compliance gaps, and get audit-ready without draining their time or budget.
Don’t wait until the door to DoD contracts closes. Get ahead today. With Sync Resource, you can build a stronger, more competitive business that primes want to work with.
