What is a Firewall, and What's the Best Type for Your Small Business?

January 28, 2025

More and more small businesses today are falling victim to cyberattacks. In fact, according to The State of SMB Cybersecurity in 2024 report by IT services platform ConnectWise, 94% of small- to medium-sized businesses (SMBs) have experienced at least one cyberattack. This is a significant increase from 2019’s 64%. To make things worse, 76% of these organizations don’t have the in-house skills to handle security issues.

To protect against escalating threats, you need to implement business-grade security measures. One of the best things you can do is to implement a firewall.  

In this blog post, we’ll discuss what a firewall is, its benefits for your business, and factors to consider when choosing one.

What is a Firewall, and How Does it Function?

A firewall is a network security system designed to prevent unauthorized access into, out of, or within a private computer network.  

Think of it like physical walls in a house that slow down the spread of fire until the firefighters can extinguish it. In the same way, security firewalls slow down cyberthreats before they can infiltrate an IT system.

A firewall acts as your business’s initial line of defense as it monitors and filters all network traffic. This includes incoming, outgoing, and application-layer traffic, communications, connectivity, and online transactions. It stops incoming threats using a set of rules that may also define which network areas users can access.

However, a firewall is not a silver bullet from all cyberthreats. For one, they can’t detect or block malware, especially if it is embedded in legitimate-looking traffic. Also, firewalls may not recognize new, previously unknown vulnerabilities (also known as zero-day exploits). Finally, they cannot protect your organization from phishing attacks and other social engineering tactics that rely on human error.

What are the Types of Firewalls?

Firewalls can vary based on their filtering methods and be implemented as either hardware or software. The most common ones are:

Packet-filtering Firewalls

The most basic type of firewall, these check data packets as they travel between computers on the internet. If a packet matches the firewall’s rules, it’s allowed to go through.

Stateful Inspection Firewalls

These analyze network traffic by monitoring the state of active connections in a network. They inspect the context of each data packet, such as its source and destination addresses, to determine whether to allow or block it based on predefined rules.

Proxy Firewalls

Also called application-level gateways, proxy firewalls function as intermediaries between the user and the internet. They inspect the data at the application level before allowing it to enter the network.

Next-Generation Firewalls

These advanced firewalls go beyond basic packet filtering and inspection. They also include features like intrusion prevention systems and application awareness to protect against more complex threats.

Hybrid Firewalls

Hybrid firewalls use two or more types in a single private IT network.

What are the Benefits of Having a Firewall for Your Small Business?

If you’ve been wondering to yourself, “do I need a firewall for my small business?”

The answer is yes! Firewalls are a smart investment for any small business. Let’s explore some of their benefits:

  • Access control: Firewalls allow you to define rules for who can access certain parts of your network and what traffic types are permitted. This way, you can better safeguard your business’s sensitive data and resources from cyberthreats.
  • Round-the-clock monitoring and alerts: Firewalls constantly monitor your networks and send you alerts so you can analyze network activity. These help you identify any potential problems before they escalate into serious threats.
  • Versatility: Your small business can choose from a variety of firewall options depending on your needs. For instance, software firewalls provide basic protection. On the other hand, Software-as-a-Service (SaaS) firewalls, also known as cloud-based firewalls, offer better protection by centralizing security management in the cloud. They also pack more advanced features like real-time threat intelligence, automated updated, and the ability to scale seamlessly as your business grows.
  • Simplified network monitoring: Because firewalls can automatically monitor traffic and alert you of suspicious activity, your IT staff’s workload will be reduced. Your team can manage your business’s security more efficiently.

Which Firewall Type Should You Choose for Your Small Business?

When it comes to the best firewall for small businesses, the answer will depend on your business and your specific security needs.

For instance, if you’re in an industry with high security requirements like healthcare or finance, proxy firewalls are a standard as they inspect traffic data at the application level. Or if you normally deal with heavy network traffic, you need a stateful inspection firewall that can manage higher volumes and maintain faster performance.

Finally, go for a next-generation firewall if your business constantly faces sophisticated cyber threats and need a robust, multi-layered network defense.

How Much Does a Firewall Cost for a Small Business?

The cost of a firewall can vary based on the type and features you need for your small business.  

  • Hardware firewalls: Basic models normally range from $700 to $1,000. More advanced models, meanwhile, can cost around $1,500 to $4,000.
  • Software firewalls: These can start as low as $50 to $100 for basic firewall solutions, and cost as much as $500 for those with advanced features.
  • SaaS firewalls: These firewalls can cost from $10 to $100 per month, depending on your chosen features and level of service.

Remember to choose a solution that fits both your budget and security needs.

How to Setup a Firewall for Small Businesses

Setting up a small business firewall might seem daunting at first, but it’s manageable with a few steps:

  1. Pick your firewall: Decide if you want a hardware firewall (a physical device) or a software firewall (a program on your computers).
  1. Install the firewall: Place the hardware firewall between your internal network and internet connection. If you have a software firewall, install it on your business’s computers.
  1. Change default passwords: Make sure to think of strong, unique passwords that cybercriminals cannot easily guess.  
  1. Create network zones: Divide your network into zones (e.g., a private zone for internal resources and a public one for internet-facing services). This helps you better manage traffic and enhance security.
  1. Set up Access Control Lists (ACLs): ACLs define which traffic is allowed or denied. For instance, you may allow traffic to your public-facing servers but block it from your internal network.
  1. Enable logging and alerts: Make sure your firewall can log events and send alerts for suspicious activities. This way, you can better monitor and respond to threats.
  1. Assess and audit: Test your firewall regularly to ensure it’s working correctly. Audit its settings to guarantee that it’s updated and working as intended.
  1. Maintain and update: Keep your firewall’s firmware and software updated to help protect your business against new threats. Finally, frequently review and update your firewall rules as your security needs evolve.

Important tip: Not all firewalls are the same, which means the one you have for your business might have a different installation process. For more technical support when setting up your firewall, it’s best to consult an IT expert like Techmedics.

Get Reliable Managed Security Services with Techmedics

Ready to harness the benefits of having a firewall in your small business? With our managed security services, we’ll analyze your cybersecurity needs and recommend the best technologies that can protect your business from all threats. Whether you’re in Los Angeles, Dallas, or Denver, we can help. Schedule a call today.  

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