·7 min read·small-business

The 3-2-1 Backup Rule for Small Business Data

A practical guide to backing up your business data properly. Learn the 3-2-1 rule, best tools for Australian businesses, and how to test your backups actually work.

The Backup Reality Check

Here's what I see constantly with Adelaide small businesses:

  • "We backup to Dropbox" - That's file sync, not backup
  • "It backs up automatically somewhere" - When did you last check?
  • "We've got an external hard drive" - When did you last plug it in?
  • "Our accountant has copies" - Of everything? Updated how often?

The uncomfortable truth: Most small businesses discover their backup doesn't work when they need it most.

The 3-2-1 Backup Rule

This simple rule has protected data for decades:

  • 3 copies of your data
  • 2 different storage types (e.g., local drive + cloud)
  • 1 copy offsite (physically separate location)

Let's break that down practically for a small Adelaide business.

Copy 1: Your Working Data

This is your computer, server, or cloud storage where you work daily. It's not really a "backup" - it's your primary copy.

Copy 2: Local Backup

A backup on the same premises, but separate from your main system:

  • External hard drive or NAS
  • Second computer with backup software
  • Local server with RAID (redundant drives)

Why local? Fast recovery. If a file gets deleted or corrupted, you can restore in minutes, not hours.

Copy 3: Offsite/Cloud Backup

A copy stored somewhere else entirely:

  • Cloud backup service (Backblaze, Wasabi, Microsoft 365 backup)
  • External drive stored at home/another office
  • Your accountant's secure storage (for financial records)

Why offsite? Protection from physical disasters - fire, flood, theft, lightning strike.

The "Sync Is Not Backup" Problem

Dropbox, OneDrive, and Google Drive are file sync services, not backup:

What they doWhat they don't do
Sync files across devicesKeep historical versions forever
Quick access anywhereProtect against ransomware
CollaborationSeparate offsite copy

The ransomware problem: If a virus encrypts your files, that encryption syncs to all your devices. Sync services might keep some version history, but it's usually 30-90 days, and restoring is painful.

A true backup is:

  • Separate from your working data
  • Versioned (keeps old copies you can go back to)
  • Tested (you've verified it works)

Recommended Backup Stack for Adelaide Small Business

For 1-5 Person Teams

Option A: Simple Cloud Backup

  • Backblaze Personal/Business - $9/month unlimited for one computer
  • Backs up everything continuously
  • 30-day version history (1 year with Business plan)
  • Australian data can be stored in Sydney region

Option B: Microsoft 365 + Cloud Backup

  • Your data lives in OneDrive/SharePoint
  • Add a third-party backup like Acronis or Veeam for M365
  • This protects against accidental deletion and ransomware

For 5-20 Person Teams

Local + Cloud Combo:

  1. Synology NAS on-premises (~$500-1500)
  • Automatic backup from all computers
  • Fast local restore
  • Built-in cloud sync for offsite copy
  1. Cloud backup service
  • Synology C2 (their own cloud)
  • Backblaze B2 (cheap storage)
  • Wasabi (fast, no egress fees)

What About External Hard Drives?

They're fine as ONE part of your strategy, but:

  • Don't rely on them alone
  • Don't leave them plugged in 24/7 (ransomware will encrypt them)
  • Use for weekly/monthly "cold" backup
  • Store one offsite (swap between two drives)

The Test That Most People Skip

When did you last test a restore?

Backing up is only half the job. You need to verify:

  1. The backup is actually running
  2. Files can be restored
  3. You know HOW to restore

My recommendation: Every month, pick a random file or folder and restore it. If you can't, your backup isn't working.

Real Scenarios I've Seen in Adelaide

Scenario 1: The Ransomware Hit

A Norwood accounting firm got encrypted. Their "backup" was Dropbox sync - also encrypted. No offsite backup. They paid the ransom ($15k) to recover client data.

With proper backup: Wipe systems, restore from yesterday's backup, lose a day's work maximum.

Scenario 2: The Stolen Laptop

A consultant's laptop was stolen from their car in Glenelg. No backup. Two years of proposals, client files, and templates - gone.

With cloud backup: Buy new laptop, install Backblaze, restore everything by end of day.

Scenario 3: The "It Was Backing Up" Surprise

A Prospect retail business had an external drive "for backups." When their main computer died, they discovered the drive had stopped working 8 months ago. No-one checked.

With monitoring: Backup software alerts you if backups fail. Someone actually reads those alerts.

What About RAID?

RAID (redundant hard drives) protects against drive failure, NOT:

  • Ransomware
  • Accidental deletion
  • Fire/flood/theft
  • Corruption

RAID is great for uptime. It's not a backup strategy on its own.

Quick Action Checklist

Today (5 minutes):

  • Write down where your data is backed up right now
  • Check if backups are actually running

This week (1-2 hours):

  • Test restoring a file from backup
  • Identify any gaps (no offsite? no versioning?)

This month:

  • Implement 3-2-1 if you haven't already
  • Set a calendar reminder to test restores monthly

Need Help Setting This Up?

Backup configuration is one of my most common call-outs. I can assess your current situation, recommend the right tools, and get everything configured properly.

Pricing depends on complexity - simple setups might only take an hour, larger businesses might need half a day. Either way, it's cheap insurance compared to losing everything.

Book a backup assessment →

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