The Impact of Slow Internet on Small Business

If you're a small business owner, you'll know that a fast and reliable internet connection keeps your operations running smoothly.

Whether you're processing payments, managing online orders, or handling customer enquiries, when the internet slows down, so does everything else.

As a result, employees get frustrated, you probably get even more frustrated, your customers can lose patience, and productivity takes a hit.

In fact, a 2023 Deloitte study found that businesses with strong digital connectivity see 25% higher revenue growth than those struggling with poor connections.

In short, reliable internet for small business is everything!

Reduced efficiency and lost time

I don't know about you, but when internet speeds are slow and tasks take longer than they should, it frustrates me to my core. Sending emails, uploading files, or saving important documents to the cloud becomes punishing.

What adds to the frustration is how it affects my bottom line. These delays add up. If you have employees, it's worse. Their lost productivity means you're not getting your money's worth.

If your business relies on large file transfers, the impact is even greater. Imagine a small marketing agency trying to upload high-resolution videos for a client. Slow internet speeds have a roll-on effect. It can turn a 10-minute task into an hour-long ordeal.

As a result…

Deadlines get pushed.

Frustration builds.

Efficiency takes a serious hit.

Productivity drops.

What the statistics say

I researched some statistics to support my discussion on the cost of slow internet for small businesses. Here’s what I found.

• 94% of UK small businesses experience poor connections, with 91% facing outages, leading to lost productivity (Zen Broadband UK).
• 48% say connectivity issues hurt their efficiency, costing up to 3 hours a month in downtime.
• Slow internet leads to missed sales and poor customer experience. 40% report customer complaints due to online issues.
• 53% of users abandon a website if it takes longer than 3 seconds to load (Google).
• Tech issues, including slow internet, cost businesses 12 working days a year in lost time.
• £1.28 billion is lost annually to UK broadband outages (Unswitch).
• Internet outages cost USA companies over $10 million per month, highlighting the critical need for robust internet resilience strategies
• Nearly one-third (33%) of small businesses struggle with broadband speeds insufficient for their current needs, and 40% say their broadband is not adequate for future requirements.
• Additionally, 32% report that poor connectivity has prevented them from contacting customers (Federation of Small Businesses UK).

Customer dissatisfaction and lost sales

They say there are two certainties in life. Death and taxes.

I think there's a third. Customers don’t like to wait.

A slow point-of-sale (POS) system in a retail shop or café can cause long, slightly awkward moments. These can lead to queues, which can result in impatient customers walking out.

Unfortunately, in today's world where speed matters, sluggish internet can mean lost sales.

Operational disruptions

Today, many businesses rely on the cloud, as well as VoIP phone systems, and video conferencing, to stay connected. But when the internet is subpar, so are these essential services.

I recently worked remotely from a developing country. The internet was slower and power outages were common. Video meetings had occasional cutouts and audio lags. It was definitely a learning experience.

Employee frustration and low morale

A UK study found that poor internet speed is one of the biggest tech-related complaints in the workplace, contributing to stress, lower morale, and poorer job satisfaction.

The article starts with the headline: “Study suggests small businesses could be losing out on two and a half working weeks a year from employees because of unreliable internet connections and technology issues.” As a business owner, that's a big loss.

When employees feel like they’re constantly battling slow systems, it can affect motivation. Imagine your team trying to meet tight deadlines but spending half their time waiting for files to upload.

What starts as minor frustration can quickly turn into disengagement, eventually leading to higher staff turnover.

How to fix slow internet for your small business

So, the question is: how do we fix it?

Assess your internet speed and needs

Start by testing your current internet speed using a tool like Speedtest.net.

Things to consider:

• Download and upload speeds
• How many devices and applications are using the network
• How big your team is
• How many cloud-based tools your business uses

These factors will help you determine what kind of upgrade you need.

Upgrade your business internet plan

Many small businesses stick with the same internet plan for years, even as their needs change. Just like your banks of choice, there's no requirement to stay loyal to your telco.

If your connection is consistently slow, then just go where you're treated best. Forget loyalty and switch to a business-grade service with higher bandwidth and better reliability.

Many providers now offer fast fibre business internet, and you can compare different speed tiers with a provider like Swoop here.

Invest in better hardware

Outdated routers and modems can slow down even the fastest internet plans. Upgrading to a high-performance business router can make a huge difference.

Use wired connections where possible

While Wi-Fi is convenient, it’s not always the most reliable option.

For example, ethernet connections offer faster and more stable speeds, especially for critical tasks like point-of-sale (POS) systems, video conferencing, and cloud backups.

Optimise network settings and manage bandwidth

Routers have quality-of-service (QoS) settings that allow you to prioritise important applications over less critical ones. You can optimise these.

For example, reducing streaming and large downloads during peak hours can also help maintain a smooth connection.

Consider a backup connection

Internet outages can bring business to a standstill. A secondary connection, such as a 4G or 5G mobile broadband plan, can serve as a backup to keep your business online in case of disruptions.

Most importantly, it gives you peace of mind should your main internet fail.

Key points:

• Slow internet cuts productivity. Delays in tasks like file uploads and cloud access waste time and lower staff efficiency, with some businesses losing up to 12 working days a year.
• It frustrates employees and customers. Staff morale suffers, deadlines slip, and poor customer experiences (e.g. slow POS or website load times) lead to lost sales.
• It can cost businesses big. Poor connectivity leads to lost revenue and growth opportunities, with global downtime costs reaching billions annually.

Author: Marshall Thurlow is Director and Founder of Orion Marketing Pty Ltd. He is a digital marketer with expertise in SEO, website design, content marketing, and project management.