Large cyber breaches tend to make the biggest headlines, but physical breaches remain a costly and ongoing threat to brick-and-mortar businesses. From burglary and internal theft to impersonation attempts, physical vulnerabilities can compromise your company’s assets and data. Let’s look at the most common risks small businesses face and how you can best protect your business.
Why physical security is just as critical as cybersecurity
As our world becomes increasingly digital, it’s easy to assume that cybersecurity is the biggest priority for your business. But physical security matters just as much, because over 60% of companies experienced a physical security breach in the past year. And physical breaches are expensive, costing midsize companies an average of $450,000.
These costs stem from operational downtime, loss of inventory or equipment, regulatory fines, or business interruption costs. And in many states, insurers can raise your premiums or even deny your claim outright if your business didn’t have reasonable security measures in place.
And while many business owners think of cybersecurity as a purely digital concern, a lack of physical safeguards increases your business’s vulnerability to a cyberattack. For example, one report found that 1 in 10 data breaches stemmed from lapses in physical security. So protecting your network and systems starts with securing your building, devices, and access points.
Small businesses are often targets for crime because they tend to do large cash transactions and have fewer staff members and security measures in place. Data also shows an alarming increase in incidents of workplace violence.
In 2025, 30% of full-time employees witnessed violence against co-workers, and 15% experienced workplace violence themselves. Physical security measures are often necessary to protect your employees and customers.
Small businesses are often targets for crime because they tend to do large cash transactions and have fewer staff members and security measures in place. Data also shows an alarming increase in incidents of workplace violence.
How small businesses get targeted: Common risks and entry points
It’s common for businesses to overlook or simply underinvest in physical security measures, because the threat feels less urgent than those posed by cyber risks. But the reality is that theft, burglary, and unauthorized access are more common than many business owners realize.
For instance, surveys show that more than half of small businesses report some type of physical loss resulting from shoplifting or a break-in. And many of these business owners admit they didn’t have cameras or access controls in place when these incidents occurred. Here are some of the biggest physical security vulnerabilities for small businesses.
Break-ins and burglary
Break-ins are a common threat to small businesses, especially for restaurants, retail stores, construction sites, and discount stores. Criminals often gain access to the building through unsecured doors and windows or by forced entry.
And in recent years, smash-and-grab thefts have become a growing concern for businesses. These incidents involve groups of thieves breaking into a store and quickly stealing large amounts of merchandise before fleeing. Because these incidents occur so quickly, the thieves are usually gone before law enforcement arrives.
Blind spots
Physical blind spots around a store or buildingleave businesses vulnerable during the day and at night. Poor exterior lighting, camera dead zones, and back-alley loading zones reduce visibility and make it easier for thieves to enter your building undetected.
Unsecured delivery entrances, propped-open doors, or storage rooms with unrestricted access also allow easy entrance into sensitive areas. These gaps become especially risky when combined with predictable patterns, like staff leaving through the same unattended exit every night.
Internal theft
While external threats tend to get the most attention, internal loss is a big problem for many small businesses. U.S. companies lose an estimated $50 billion per year due to employee theft. And roughly a third of all business bankruptcies are caused in part by employee theft. The most common types of theft include cash skimming, stealing products, giving fake refunds to customers, or misusing business property.
Unauthorized access also becomes a problem when former employees hang onto keys or alarm codes. And a lack of surveillance and inventory controls complicates investigating these incidents.
Impersonation attempts
Some criminals gain access to your building by finding ways to appear legitimate. Common tactics include pretending to be maintenance workers, vendors, contractors, or delivery personnel to bypass screening and enter restricted areas.
Tailgating is another common tactic, which involves following an employee through a secure door before it closes. These incidents are often successful when businesses don’t have sign-in procedures for visitors.
Key components of a modern small business security system
It’s not enough for businesses to install basic cameras and deadbolts. A small business security system should combine smart devices, access controls, and procedural safeguards that work together to deter intruders. Here’s what a comprehensive security system includes:
- Access controls: Strong access controls limit who can enter your facility and sensitive areas within it. Tools like key cards, PIN pads, and smart locks ensure only authorized personnel have access to your building. Digital logs also document who entered and when, which can be invaluable after a theft occurs. And anytime an employee leaves the company, their access permissions should be revoked immediately.
- Video surveillance: Camera surveillance helps deter theft and provides visual evidence when incidents happen. Features like night vision, motion-based alerts, license-plate capture, and cloud-based storage let business owners monitor their location after hours. It’s a good idea to install cameras at the main entrances, at all cash-handling areas, and in inventory rooms.
- Alarm systems: Door and window sensors, glass-break detectors, and alarm systems are crucial for detecting unauthorized entry. Panic buttons at registers or reception desks provide fast alerts during emergencies, while silent alarms can help dispatch responders without escalating a situation.
- Physical barriers: Barriers like commercial-grade locks, gates, and perimeter fencing help deter forced entry. Adequate lighting around the building helps eliminate hiding spots, while secured delivery areas reduce opportunities for tailgating and unauthorized access.
- Cyber secure infrastructure: Using strong passwords, multifactor authentication, and regularly updating software prevents criminals from disabling cameras, unlocking smart doors, or accessing footage remotely. Anytime you add new devices, you should confirm that the equipment uses encryption and secure data transfer.
- Visitor management: Sign-in procedures, badges, and digital guest logs help verify who’s on-site and prevent impersonation attempts. Contractors, maintenance teams, and delivery personnel should be screened rather than waved in, and audit logs should be maintained.
- Policies and training: All employees should understand opening and closing procedures, know which areas are restricted, and be trained to recognize suspicious behavior and report it. Businesses should also establish protocols for lost keys, regularly update alarm codes, and monitor access to cash drawers and inventory.
- Security assessments: Semiannual reviews help ensure your business’s security measures keep pace with ongoing threats. This testing can include testing alarms, checking camera angles, evaluating lighting, auditing access logs, and walking the property to identify blind spots or damaged equipment. A simple assessment can reveal vulnerabilities that have developed over time, particularly after staffing changes or shifts in business hours.
- Partner with local law enforcement: Many police departments offer facility assessments or guidance on securing commercial spaces in high-risk areas. Working with local law enforcement can help you identify vulnerabilities and streamline response times if an incident occurs.
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