How to Choose the Right Microsoft 365 Plan for Your Small Business Startup
Wide range of productivity tools are present in Microsoft 365 (formerly office 365) tailored for small business. Selecting the right plan is essential for small business startup to control cost and maximize efficiency. Multiple options are present, so making the correct choice can be confusing. This article can guide you to make the right choice when choosing Microsoft 365 plan for your small business.
Understand Your Business Needs
You need to plan and understand basic needs before dividing into Microsoft 365 plans
- Number of employees who will use the service
- Kind of work to be done ( Basic documentation, editing, collaboration data storage, etc.)
- Your budget
- Any industry-specific regulation (such as GDPR compliance that requires security features)
You will be preventing overpaying for services you may not use by understanding your needs to identify the features more important.
Microsoft 365 Plans for Small Businesses
Several tiers for small businesses are offered, and below are the relevant plans.
Microsoft 365 Business Basic
- Cost: Lower than other options.
- Key Features: Web and mobile version of office app, 1TB of one drive storage, business email, Microsoft Teams for collaboration, and 24/7 phone and web support
- Who is best for: This plan is ideal for startups that need email cloud storage and basic collaboration features. If your team works with heavily based web tools and rarely needs desktop applications, this plan provides an affordable solution.
Microsoft 365 Apps for Business
- Cost: Mid-range.
- Key Features: Desktop versions of Office app (Word, Excel, Powerpoint) 1TB one storage drive and standard support. However, it does not include business e-mail or Microsoft Teams.
- Who it’s best for: If your team needs full access to desktop office app but already has email solution this plan is good middle ground. It is also great for business with heavy documentation creation but no urgent requirement for cloud collaboration tools.
Microsoft 365 Business Standard
- Cost: Cost higher than basic but still affordable for small business
- Key Features: Full desktop version of Office app business email, Microsoft Team, 1TB storage drive, and collaboration tools
- Who is best for: Plan offers for small business that needs both desktop applications and strong collaboration. It requires tools to work in real-time, conduct meetings, and share files.
Microsoft 365 Business Premium
- Cost: Highest among small business plans
- Key Features: All features in the standard plan of business. Additional security measures such as conditional data loss prevention and Microsoft Defender
- Who is best for An advanced security plan is essential to handle the sensitive data of customers’ strict regulatory requirements. This plan is suitable for businesses to seek quickly and requires robust security measures from the start.
Factors to Consider When Choosing a Plan
Number of Users
Microsoft 365 Business plans are priced per user month. Small teams must ensure to choose the plan that fits your budget as your team grows business basic and business standards are best for startups with limited members of users. A detailed comparison is also available on Get into My PC which may help you understand better.
Collaboration Needs
If your team needs to work closely to share documentation and communicate regularly, Microsoft Team (included in Basic, standard, and Premium) will be a crucial tool. For startup teams, remotely or spread across different locations that feature productivity
Security Requirements
If your business involves handling sensitive information, security becomes a high priority. While business basic and standard offers some protection. Features the risk of cyber attack is reduced with added advanced tools to protect your data
Budget
During startup managing cost is important. If your business requires basic functionality, like email and cloud storage, the business basic will be best. For more advanced collaboration tools consider the business standard plan. Especially when your business grows consider the security needs might require investment in business premium.
Comparison Table
| Plan | Cost (per user/month) | Key Features | Best For |
| Microsoft 365 Business Basic | $6.00 | – Web and mobile versions of Office apps (no desktop apps) – 1 TB OneDrive storage – Business email – Microsoft Teams – Standard support |
Startups needing basic email, cloud storage, and collaboration tools |
| Microsoft 365 Apps for Business | $8.25 | – Full desktop versions of Office apps – 1 TB OneDrive storage – No business email or Teams |
Startups needing desktop Office apps but no email or Teams |
| Microsoft 365 Business Standard | $12.50 | – Full desktop versions of Office apps – Business email – Microsoft Teams – 1 TB OneDrive storage – Standard support |
Startups needing both desktop apps and collaboration tools |
| Microsoft 365 Business Premium | $22.00 | – All Business Standard features – Advanced security (conditional access, Microsoft Defender, data loss prevention) |
Startups with strict security needs or handling sensitive data |
Conclusion: Finding the Right Fit
Your team’s specific need and budget depends upon your small business plan and startup. The business standard plan is striking the right price and functionality and collaboration of tools. Basic is a starting point. Businesses, on the other hand, are regulated, and those handling sensitive information should opt for a business premium for added security compared to the feature plan. You need to evaluate your business needs and should select the most effective solution.
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