December 4, 2020 is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Resources for Entrepreneurs


Becoming an Entrepreneur


Opening a Data Recovery Business

These tips are written for those who plan on opening a data recovery business. Read these tips before you open up shop.

Wondering how to start a data recovery business? We take you step-by-step from start to success.

Data Recovery Company

To do well as a data recovery business owner, make sure your company is staffed with fully trained and certified personnel.

The Business of Professional Data Recovery

Data is the currency of the Information Age. When companies lose access to critical data, the consequences can be devastating to their workflows and bottom lines. Since most businesses lack internal data recovery specialists, the task of data recovery often falls to qualified third-party service providers.

Emerging entrepreneurs in data recovery must understand the central role professional competency plays in the industry. Unfortunately, the data recovery marketplace is currently rife with startups that lack the skills or ability to perform effective data recovery, causing many customers to rely exclusively on established providers for their data recovery needs.

As a new data recovery business owner, it is essential to equip your business with fully trained and certified personnel. Certification with the International Professional Data Recovery Association (IPDRA) or similar trade organization can help differentiate your startup from the unqualified providers littering the marketplace.

Startup Requirements for Data Recovery Service Providers

Adequate training in data recovery techniques for a wide range of systems and hard drives is a prerequisite, but it's not the only thing you'll need to launch your startup. When it's done right, data recovery utilizes specialized equipment and facilities to locate and restore data.

  • Data recovery tools & equipment. Every data recovery startup should be equipped with professional grade tools. Torx head screwdrivers, specialty pliers, tweezers, top-grade soldering equipment, heat guns and other pieces of equipment will come into play on a daily basis. Plan appropriately and factor the cost of high quality tools into your startup capital budget.
  • Clean room. Legitimate data recovery providers maintain a "clean room" where they work on computer storage components, hard drives and other sensitive elements of physical data recovery. At a minimum, your clean room should meet ISO 1000 particle standards and feature Laminar flow work benches to minimize the potential for dust and other particles to contaminate your clients' hardware.
  • Sales team. Aside from the technical assets required for data recovery, your startup will need a dedicated sales team whose sole function is to acquire new clients. Since data recovery can be an intense and focused activity, it's unreasonable for business owners or data recovery specialists to perform double-duty as sales representatives.

Best Practices for Writing a Data Recovery Company Business Plan

Many new data recovery business owners feel unprepared for the challenge of writing a business plan.

Fortunately, you don't have to tackle your data recovery company's business plan by yourself. There is a broad range of resources available for solo entrepreneurs who face the daunting task of writing a business plan from scratch.

If you're feeling overwhelmed, take a look at Gaebler's Business Plan Help section for a list of business plan writing resources.

Check Out the Competition

Before you open a data recovery business within your community, it's a smart move to determine how strong the competition is. Try our link below to find competitors in your city. After following the link, enter your city, state and zip code to get a list of data recovery businesses in your area.

How are you going to successfully complete with existing firms? It's important that you never underestimate the competition.

Find Good Remote Business Advice

As part of your due diligence on opening a data recovery business, it's essential that you talk to somebody who is already in the business. If you think owners of nearby data recovery businesses will give you advice, think again. What's in it for them?

However, an entrepreneur who owns a data recovery business outside of your community may be more than happy to give you a few tips, as long as they don't view you as a competitive threat. In that case, the business owner may be more than happy to discuss the industry with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.

What's the best way to find somebody who runs a data recovery business in a different locale who can assist you?

We can help. Follow the link below, try a few city/state combos or zipcodes, and then start calling!

Benefits & Drawbacks of a Data Recovery Business Acquisition

An acquisition can be a great way to enter data recovery business ownership. But it's important to evaluate the benefits and drawbacks of buying a business before you decide on either an acquisition or startup approach.

PROs: Acquired data recovery businesses should be profitable right out of the gate; they should also be capable of demonstrating a loyal customer base, brand identity and operational efficiencies.

DRAWBACKS: However, purchased companies can also come with pre-existing challenges and/or liabilities. Ultimately, it may be more difficult to tailor a purchased business to your ownership style.

Don't Forget About Franchising As an Option

As an entrepreneur, your chances doing well with your venture are substantially improved when you opt to franchise in lieu of doing everything yourself.

Before opening a data recovery business, you would be wise to investigate whether buying a franchise could alleviate your startup process.

The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.

Related Articles on Starting a Company

These additional resources regarding getting started as an entrepreneur may be of interest to you.

Starting a Business

Naming My Business

LLC Advantages

Conversation Board

What do you have to say about starting a data recovery business? We enjoy hearing your comments, insights and suggestions

Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code

Already Own a Data Recovery Business?

If you already are in business and came here to learn about growing an existing data recovery business, try these useful resources:

Marketing a Data Recovery Business

Selling a Data Recovery Business

Are You Selling to Data Recovery Businesses?

If you sell to data recovery businesses, this isn't the right place for you. These resources are more appropriate for you:

Selling to Data Recovery Businesses

Mailing Lists for Data Recovery Businesses

More Startup Guides

If you are interested in starting a different kind of business, please browse our directory of guides below.





Additional Resources for Entrepreneurs

Entrepreneur Features

Employee to Entrepreneur

Small Business Ethics

Good Business Books

Studying Entrepreneurship

How Kids Make Money

Social Entrepreneurship

Mergers and Acquisitions

Entrepreneur Blogs