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 do | What they don't do |
|---|---|
| Sync files across devices | Keep historical versions forever |
| Quick access anywhere | Protect against ransomware |
| Collaboration | Separate 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:
- Synology NAS on-premises (~$500-1500)
- Automatic backup from all computers
- Fast local restore
- Built-in cloud sync for offsite copy
- 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:
- The backup is actually running
- Files can be restored
- 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.
Need Help With This?
If you're dealing with something covered in this article and want hands-on help, book a call-out. $170 includes travel and the first 30 minutes.
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