Microsoft 365 for Small Businesses: Setup and Best Practices

html

Here in western Connecticut—from Litchfield County down through Fairfield and New Haven counties—we help dozens of small businesses get set up with Microsoft 365 every year. Whether you're running a home office in Heritage Village or managing a small shop in Southbury, getting Microsoft 365 configured properly from the start will save you headaches down the road.

Setting Up Microsoft 365 for Your Small Business

Microsoft 365 (which used to be called Office 365) gives you email, Word, Excel, and other programs your business needs. Here's how to get everything working correctly:

Step 1: Choose the Right Plan for Your Business

Microsoft offers several plans, but most small businesses do well with either Business Basic or Business Standard. Business Basic costs about $6 per person per month and includes email and web versions of Word and Excel. Business Standard runs about $12.50 per person per month and adds the full desktop programs that install on your computer.

If you have 1-5 employees, Business Standard usually makes the most sense. You get everything installed on your computers just like the old days, plus everyone gets email with your business name (like [email protected] instead of [email protected]).

Step 2: Purchase Your Subscription

Go to microsoft.com and click on Products, then Business. Click on Microsoft 365 and choose your plan. You'll need a credit card and will create a Microsoft account if you don't have one already. Write down your username and password somewhere safe—you'll need these often.

Microsoft will ask for your business name and a domain name. If you already have a website, use that domain. If not, they'll set you up with a temporary one that ends in .onmicrosoft.com, which you can change later.

Step 3: Set Up Your Business Email Addresses

Once you're logged into the admin center (admin.microsoft.com), click on Users, then Active Users, then Add a User. Fill in the person's name, and create their email address. For example, if you're adding Susan Johnson, you might make her email [email protected].

Create a strong password for each person. Microsoft will want at least 8 characters with a mix of letters and numbers. You can either email people their passwords or write them down and hand them out in person.

Step 4: Install Microsoft 365 on Your Computers

Each person should go to office.com and sign in with the email address and password you created for them. Click Install Office in the top right corner, then Install Microsoft 365 Apps. The download will start automatically.

Once downloaded, open the file and follow the prompts. The installation takes about 20-30 minutes depending on your internet speed. If you have Frontier, Optimum, or Xfinity in your area, make sure you're connected to your fastest connection before starting.

Step 5: Set Up Email on Your Phone

On an iPhone, go to Settings, then Mail, then Accounts, then Add Account. Choose Microsoft Exchange. Enter the email address and password, and everything should connect automatically.

On an Android phone, open the Gmail app, tap your profile picture, then Add Another Account, then Outlook/Exchange. Enter the email and password.

If it asks for server settings, the server is outlook.office365.com. Most of the time, though, it figures this out on its own.

Step 6: Configure Security Settings

Back in the admin center at admin.microsoft.com, click on Setup, then Sign-in and Security. Turn on multi-factor authentication. This means when someone logs in from a new device, Microsoft will send them a text message code to make sure it's really them.

Yes, this adds an extra step, but it stops almost all hacking attempts. We see businesses without this protection get their email broken into regularly, and it's a mess to clean up.

Step 7: Set Up File Sharing with OneDrive

Each person gets 1TB (that's 1,000 GB) of storage in the cloud with their account. OneDrive will install automatically when you install Office. You'll see a blue cloud icon in your system tray at the bottom right of your screen.

Click the cloud icon, then the gear icon, then Settings. Under Account, click Choose Folders to pick which folders sync to your computer. Start small—just sync your Documents folder at first. You can always add more later.

Files you put in your OneDrive folder are automatically backed up to Microsoft's servers. If your computer dies, your files are safe. This has saved countless businesses we work with from disaster.

Best Practices Once You're Set Up

Now that everything's installed, here are some tips to keep things running smoothly:

Keep Your Passwords Safe

Write down all your Microsoft 365 usernames and passwords in a notebook that you keep in a locked drawer. Yes, security experts say not to write passwords down, but in reality, small businesses that don't write them down end up locked out of their accounts. Just keep the notebook secure.

Check Your Billing

Microsoft bills monthly or yearly depending on what you chose. Log into admin.microsoft.com once a month and click on Billing to make sure the charge looks right. If someone left your company, remove their account so you stop paying for them.

Update When Prompted

When Microsoft Office asks you to update, go ahead and let it. These updates fix security problems and bugs. We recommend doing updates at the end of your workday so your computer can restart overnight if needed.

Use Shared Calendars

In Outlook, you can share your calendar with other people in your business. Right-click on your calendar, choose Share, then pick the person's name. This way everyone can see when others are available for meetings without playing phone tag.

Frequently Asked Questions

Q: What happens to my old email when I switch to Microsoft 365?
A: Your old email stays where it is unless you move it. You can set up forwarding from your old email to your new Microsoft 365 email so you don't miss anything during the transition. Most people run both for a month or two before fully switching over. If you need help moving old emails into Microsoft 365, that's something we do regularly—it takes about an hour per person depending on how much email you have.

Q: Can I use Microsoft 365 if I have a Mac?
A: Yes, Microsoft 365 works great on Macs. The programs look a little different than on Windows, but all the same features are there. You install it the same way—go to office.com, sign in, and click Install Office.

Q: What if I already have an older version of Microsoft Office installed?
A: The Microsoft 365 installer will either update your old version or install alongside it. Generally, we recommend uninstalling the old version first to avoid confusion. On Windows, go to Settings, then Apps, find Microsoft Office in the list, and click Uninstall. Then install the new version fresh.

Q: Do I need to pay for Microsoft 365 every month forever?
A: Yes, Microsoft 365 is a subscription service. As long as you keep paying, you keep getting updates and new features. If you stop paying, you lose access to the programs after 30 days, but your files stay on your computer. Some people prefer the old way of buying Office once, but that version never gets updated and eventually stops working with newer computers. The monthly cost works out to less than buying new versions every few years like we used to do.