"Don't scrimp on security software," explains Selby. "The most important thing is to make sure it's updating daily or, even better, hourly. I'd also think about outsourcing because no one should expect to - or have to - become a security expert overnight."

You'll also want to encrypt data on your wireless network, and lock down outside access to that network using Wi-Fi Protected Access (WPA), which should be built-in to most wireless routers. Why should you care about someone using your wireless signal? Because it puts your company at risk.

"Let's say that a child pornographer uses your wireless connection to send files," says Selby. "Do you want that to come out? That your business allowed those files to be transferred over your network?"

It's a people problem, too

Of course, there's more to security than software and hardware. In fact, those companies that relax just because they have their end points and network secured may be putting their existence in great peril, says JupiterResearch's Kountz. "Internal hacking or data compromise is a risk for anyone who has data flowing or stored electronically," he says. "Employees do steal, both physically and electronically." For example, you could be doing everything right, but if you forget to encrypt your backups, you may be sunk without knowing it.

"Encrypting your backup tapes is absolutely crucial. With a smaller business, the easiest thing to do is to lose backups. Someone - especially an employee - can just walk by and pick up a tape and then they've got your entire business sitting in their hands," explains The 451 Group's Selby. "You may not live in a state that requires data breach notification, but to have the local paper writing that you've lost personally identifiable customer data is a death sentence."

This is why you need to focus on controlling the flow of all data - not just your backups - where it sits, who has access to it, and whether or not it's encrypted.

And then there's the issue of access control. You wouldn't hand a stranger the key to your front door, but that's just what happens when companies unwittingly leave the 'doors' to their network - and office - open.

This is why password protection is so important, as is physically locking doors and file cabinets. Even USB devices such as iPods, digital cameras, and external storage drives can and should be locked down.

"If you've got confidential process lists, customer contact lists, credit card numbers, you want to look at hardware and software that limits access to those types of devices," says Selby. "Most companies can easily implement device or port control."

But it's not the only answer. You can have the best technology in place, but without human compliance, you can have serious issues. This is why communicating risks to employees is important. For example, most people are aware that malware and viruses can originate in emails or shared files, but few realise that a Web page - even one from a known, trusted company - can harbour something dangerous.

"The concept of drive by download is a prevalent threat, and clear and present danger," says Selby. "Type in the right URL, go to a social networking site that has flash animation that exploits a vulnerability and you can become infected. Employees should know that they can pick up malware from legitimate Web sites."

And that's where education - as well as a good software program or hardware appliance comes in.

So with all these issues, how can a business owner do the right thing without panicking or losing sight of what's most important? Unfortunately, there isn't a one-size-fits-all fix to potential threats, says Selby, but you can make a difference.

"Most businesses will find three things that will comprise 80 percent of their risk," he explains. "Fix those first. Start with the stupid - the things you know you should be doing but just aren't."

For more information on security, visit the Dell website