GDPR for Small Business: Five Simple Steps to Help Avoid a Data Protection Fine

As a growing business owner, you’re juggling everything from sales to sourcing. Data protection compliance may sound like something only tech giants need to worry about. However, the truth is that any business holding personal data (whether in the form of customer email addresses or employee records) must comply with privacy laws. The good news? Compliance doesn't have to be a nightmare. Taking a few simple steps can significantly reduce your risk of major penalties. Here are 5 quick things you can do to protect your business.

Taking simple steps may mean avoiding a data protection fine

1. Map Your Data: Know What You Have and Why

You can't protect what you don't know you have. High-risk issues often stem from holding onto data you don't need.

• The Audit: Create a simple spreadsheet. List every place you store personal data (CRM, physical files, spreadsheets, cloud backups).

  
  

• The What & Why: For each piece of personal data ask yourself two questions:

  
  

  1. Do I have a “lawful basis” to keep this? For example, is keeping the data necessary to fulfil a contract or comply with a legal obligation? If not, do you have consent to keep the personal data or a “legitimate interest” in doing so?

     
     

  2. How long do I need it? If you don't need a customer's old bank details after they stop working with you, delete them securely. Holding on to unnecessary data for too long is a common, high-risk error.

     
     

Action Point: If you can't justify why you have personal data, securely delete it.

2. Fix Your Consent (Especially for Marketing)

While the concept of “soft opt-in” continues to apply in certain circumstances, the days of pre-ticked boxes are long over. Relying on invalid consent to send direct marketing is one of the quickest ways to attract regulatory attention.

• Be Specific: If you collect an email address for an order confirmation, you cannot automatically use it for your weekly newsletter. Unless the “soft opt-in” exemption applies, your direct marketing needs separate, explicit permission.

  
  

• The Easy Opt-In: Ensure any checkbox or button people click to sign up for marketing is unticked by default and clearly states what they're agreeing to (e.g., "Yes, I would like to receive your weekly newsletter.").

  
  

• Keep a Record: Your systems must be able to prove when a person consented, what they consented to, and how they did it. If challenged, your proof is your protection.

  
  

Action Point: Review how you collect consent to direct marketing to ensure that such consent is freely given, specific, informed, and unambiguous.

3. Secure Your Weak Spots

The majority of data breaches in small businesses are not due to sophisticated hackers, but to human error (e.g., sending an email to the wrong person or using weak passwords to secure accounts).

• Password Policy: Implement a mandatory strong password policy and use Two-Factor Authentication (2FA) on all systems that hold personal data (email, CRM, cloud storage).

  
  

• Encryption: Any device that leaves the office (laptops, USB drives) and holds personal data should have its storage encrypted.

  
  

• Staff Training: Every staff member must know what personal data is, what a data breach looks like, and what to do if they spot one. Simple training is a crucial defensive step.

  
  

Action Point: Encrypt laptops and run a short, mandatory staff training session on common email mistakes and secure password use.

4. Prepare for Subject Access Requests (SARs)

Individuals have the right to ask for a copy of all the personal data you hold about them. These requests are known as a Subject Access Request (SAR). Failure to respond properly and on time to a SAR may land you in hot water.

• Designate a Contact: Decide who in your business (even if it's just you) is the official contact for data-related requests. This ensures nothing gets missed.

  
  

• Have a Process: Know where the personal data you hold is (see step 1 above). If a SAR arrives, you will generally be required to respond within one-month.

  
  

Action Point: Put a process in place to ensure that you’re equipped to respond to a SAR quickly. Don't wait until a SAR hits to figure out what to do.

5. Have a 72-Hour Breach Plan

A data breach is any loss, theft, or accidental exposure of personal data. How you respond to a data breach is critical to mitigating the risk of a fine.

• Identify & Contain: Staff must know to immediately report a suspected data breach to your designated contact person. The first goal is to contain the risk and stop the damage.

  
  

• Notify: If the breach is likely to result in a "risk to the rights and freedoms" of individuals (meaning it could lead to financial loss, discrimination, or distress), you must notify the ICO within 72 hours of becoming aware of it.

  
  

• Remediate: Once the initial threat is contained, you must take steps to fix the vulnerability that allowed the breach to happen. This might involve updating security software, patching a system flaw, retraining the staff member involved, or improving access controls.

  
  

Action Point: Create a data breach response plan that outlines the roles, responsibilities, and step-by-step procedures you will follow in response to a data security incident.

Need Help Getting Started?

Clause Two is well versed in helping clients put these practical steps in place. We also work with clients to ensure internal policies and contracts are legally robust. Whether you need assistance reviewing your most sensitive data flows, responding to a SAR or a data breach, or simply updating your Privacy Policy, get in touch for a no obligation, fixed price quote today.