How to Set Up Microsoft 365 for a Small Business: A Step-by-Step Guide for Owners

by | Sep 28, 2025

Stage 1: Prepare Before You Create Your Microsoft 365 Tenancy

Before you begin setting up Microsoft 365, it’s important to gather a few key pieces of information. This preparation will make the process smoother and help avoid delays. By now, you would have already:

  • Analysed your business’ needs.
  • Assessed the quality of your Internet connectivity.
  • Provisioned a domain name to reflect your trading style.
  • Assessed what kind of Microsoft 365 licenses you need.
  • Who to assign the licenses to.
  • Outlined a scheme for departmental users, folders, files.

 What You Need before you begin

  • Primary and Secondary Email Addresses
    • You will need a personal email address that is private and secure. This will act as your secondary contact and recovery address. Avoid using shared or public emails.
  • Payment Information
    • Have a valid debit or credit card ready. Microsoft requires this to activate licenses and subscriptions.
  • Domain Name Access
    • You must have access to your domain registrar (e.g., GoDaddy, 123-Reg, IONOS). You’ll need login credentials to configure DNS records for services like Exchange email.
  • Mobile Phone with Microsoft Authenticator Installed
    • Download and install Microsoft Authenticator app on your smartphone. This is essential for setting up Multi-Factor Authentication (MFA), which protects your admin account. See this article for guidance notes.

Backup Your MFA Credentials

You should configure and back up your MFA credentials during this initial stage. This is because if you cannot get access to 365 once you have started, there is no other way to recover your account. Tenancy owners have to take special measures to avoid losing 365 credentials. Once Microsoft Authenticator is installed:

 

  • Enable cloud backup inside the app (Microsoft Authenticator –> Settings –> Backup).
  • Use a personal Microsoft account (e.g., Outlook.com) to store the backup.
    • if you use iPhone, you can use iCloud to backup Authenticator credentialsw
    • write down your recovery key and store it securely offline.
  • Write down your recovery key and store it securely offline.

This ensures you won’t lose access if your phone is lost or reset.

Stage 2: Create Your Tenancy and Configure Microsoft 365

Once you have prepared preliminary essentials, you can begin setting up your Microsoft 365 environment.

Step-by-step workflow

  • Create Your Microsoft 365 Tenancy
    • Visit Microsoft 365 Business and choose a plan (Business Standard or Premium is typical). Follow the prompts to create your account.
  • Verify and Configure Your Domain Name
    • Microsoft will guide you to add DNS records to your domain registrar. This enables services like Exchange Online and Teams.
  • Add Users
    • Create user accounts for each employee. Use their real names and assign usernames based on your domain (e.g., jane@yourcompany.co.uk).
  • Purchase Licenses
    • Buy the appropriate number of licenses for your team. You can mix Business and Enterprise licenses depending on needs.
  • Assign Licenses to Users
    • Go to the Microsoft 365 Admin Center → Users → Active Users → Assign licenses.
  • Set User Roles
    • Keep yourself as the Global Administrator. Assign others as Standard Users unless elevated access is needed.
  • Prepare User Documentation
    • Create a simple guide for your team explaining:
Stage 3: Secure Your Domain and Expand Admin Capabilities

Once your tenancy is operational, it’s time to secure your email and prepare for future service expansions.

Configure Email Security

  • Set Up DKIM and DMARC – these protocols help prevent email spoofing and improve deliverability.

Expand Microsoft 365 Global Admin privileges

Some advanced features require additional permissions:

  • Security Group Memberships – add yourself to:
    • Security Administrator
    • Compliance Administrator
    • Exchange Administrator (for mail flow and connectors)

These memberships may not be necessary immediatley, however if you do not enable these now you may be frustrated when you try dealing with some functions that do not automatically appear to be available to you, including:

  • Microsoft 365 connectors
  • Threat policies
  • Data loss prevention (DLP)

Enable Additional Microsoft 365 Services

Microsoft 365 includes other services that may be disabled by default that you should enable:

  • Microsoft Teams – Collaboration and chat: installed, but requires enabling
  • Microsoft Loop – Real-time document collaboration: installed, but requires enabling
  • Planner – Task management: installed, but requires enabling
  • Bookings – Appointment scheduling: installed, but requires enabling
  • Power Automate – Workflow automation: installed, but requires enabling

To enable these services:

  • Go to Admin Center → Settings → Org Settings → Services.
  • Toggle on the services you want to use.
Summary

Setting up Microsoft 365 for a small business can be accomplished with thorough peparation and an understanding of the workflow. With the right preparation and a step-by-step approach, you can create a secure, scalable environment for your team. What you do when creating your Microsoft 365 tenancy will dictate how the tenancy works in production, and although it is possible to accomplish a functioning Microsoft 365 tenancy using our guidelines, we recommend our professional experience to provide a solid foundation for your tenancy to scale as your business grows.

About ComStat.uk: Internet Service Provider Comstat provides IT support, web hosting, and media services including web design, Microsoft 365 setup, and audio/video production, serving businesses across Denbighshire, North Wales and Wirral from Ruthin, and Lancashire and the Northwest from Bolton.

How to Use Folder Color Coding in Microsoft 365 to Boost Productivity

by | Sep 22, 2025

Why Folder Color Coding Matters in Microsoft 365

Microsoft 365 folder colour coding lets users customize folder colors in OneDrive for Business and SharePoint. This feature is gaining popularity among individuals and organizations for its ability to visually organize files and improve workflow efficiency.

Colour coded folders help users quickly identify project types, priorities, or departments—especially in long lists of folders. The screenshot below (not shown here) demonstrates how customized Microsoft 365 folder colour coding appears in OneDrive for Business when using dark mode.

Microsoft 365 folder colour coding

How to Change Folder Colors in OneDrive for Business

You can change folder colours in both the desktop OneDrive for Business app and the browser-based OneDrive dashboard. Here’s how:

  1. Right-click on the folder you want to modify.
  2. Select “Folder color” from the dropdown menu.
  3. Choose your preferred color.

This simple customization can make a big difference in how you navigate and manage your files.

Important Notes About Folder Color Functionality

OneDrive for Business: Personal Use

OneDrive for Business is designed for individual users. While you can share folders with others, folder colour changes are only visible to the person who made them. This means collaborators won’t see your colour-coded folders unless they apply their own preferences.

SharePoint and Teams: Group Use

In contrast, SharePoint and Microsoft Teams are built for shared access and collaboration. When folders are stored in SharePoint or Teams:

  • Folder colours are visible to all users with access.
  • Only the folder owner or SharePoint admin can change the colour.
  • Colour coding in these environments helps teams maintain consistent visual organization across shared resources.

However, note that Microsoft 365 folder colour coding in SharePoint may be restricted to global administrators or site owners, depending on your organization’s permissions and policies.

Limitations and Compatibility
  • Windows File Explorer does not currently support folder colour changes for locally stored folders.
  • macOS allows folder colour changes, but the process is complex and not recommended without technical support.
  • Outlook does not display folder colours when browsing for attachments or navigating folders.

These limitations highlight how Microsoft 365’s cloud-based tools offer enhanced functionality compared to traditional desktop environments.

Next Steps for Users and Admins

If you are a regular user:

  • Try colour coding a few folders in OneDrive for Business to see how it improves your workflow.
  • Use colours to tag folders by priority, project type, or deadline.

If you are a SharePoint or Teams administrator:

  • Test folder colour coding in shared libraries.
  • Establish naming and colour conventions to help teams stay organized.
  • Ensure permissions are set correctly so users can view—but not alter—shared folder colors.
Summary

Folder colour coding is a small but powerful feature in Microsoft 365 that enhances file organization and team collaboration. While OneDrive for Business is best suited for personal work-in-progress, SharePoint and Teams are ideal for shared group resources, especially when managed by global administrators.

This feature is another example of how Microsoft 365 continues to evolve beyond traditional desktop capabilities, offering smarter tools for modern work environments.

About ComStat.uk: Internet Service Provider Comstat provides IT support, web hosting, and media services including website design, Microsoft 365 setup, and audio/video production, serving businesses across Denbighshire, North Wales and Wirral from Ruthin, and Lancashire and the Northwest from Bolton.

How to Transition Users to Microsoft 365 Sign-In and Entra ID

by | Sep 20, 2025

Planning the Transition: Know Your Environment

Planning is decisive when you implement changes that affect daily IT habits. Before adopting Microsoft 365 sign-in, assess your current setup:

  • What types of licenses are in use? (Exchange Online, Business Basic, Standard, Premium, Enterprise)
  • Are users signing in with personal Microsoft accounts or local profiles?
  • Are devices running Windows 10/11 Pro or Enterprise?
  • Is Microsoft Intune available for device management?
  • Should this be a gradual change?

Understanding these factors will help you and your team understand what the onboarding process means for users. Microsoft 365 licenses support varying features,. For instance. Business Premium and Enterprise licenses include Microsoft Intune services. Apart from 365 Business Premium, other Business 365 license do not, and this will have a bearing on how Single Sign-On (SSO) rules, policies, and device management work.

To review our first article for an overview: Why Switching to Microsoft 365 Sign-In Matters for Small Businesses

Click open the headers below to learn about implementing Microsoft 365 sign-in. 

Step-by-Step: Onboarding Users to Microsoft 365 Sign-In

1. Communicate the Change Clearly

Start with a simple message to users like:

“We are moving to Microsoft 365 sign-in to improve security and simplify access to your work tools. This means that soon you will use your Microsoft 365 account to sign into your computer and Microsoft apps.”

Include:

  • Benefits (SSO, security, better data separation)
  • What to expect during the transition
  • Where to get help

2. Prepare Devices

Device configuration depends on whether the workstation is a new machine or if it is an existing workstiona.

For new devices:

For existing devices:

  • Backup important files.
  • Convert the device to Entra ID join via Settings > Accounts > Access work or school.
  • Remove personal Microsoft accounts from OneDrive and Office apps.

3. Migrate Content

Users often store business files in personal OneDrive or local folders. So, vetting content is crucial to avoid data loss and confusion. It is labout intensive too, and perhaps explains why Microsoft 365 Sign-in is necessary.  Help them:

  • Move files from personal OneDrive to OneDrive for Business.
  • Organize folders to separate personal and work content.
  • Use SharePoint for team-based storage when appropriate.

4. Enable Conditional Access and MFA

This stage depends on the license which governs your, or your user’s, Microsoft 365 account. The last step is available only where user have 365 Business Premium and 365 Enterprise licenses, which include Microsoft Intune. Set up policies in Microsoft Entra Admin Center to:

  • Require MFA for cloud access.
  • Block access from unmanaged or risky devices.
  • Enforce sign-in only from Entra-joined devices (if Intune is available)

5. Train and Support Users

Offer short guides or walkthroughs:

  • How to sign in with Microsoft 365 credentials
  • How to access OneDrive for Business
  • What to do if they’re locked out or need help

Power users are a terrific way to demonstrate end educate. Also, consider organizing a short Q&A session or creating a helpdesk channel in Teams as another ways to build confidence in this upgrade.

Common Challenges and How to Solve Them

Adopting Microsoft 365 sign-in across your team is likely to introduce some resistance. In our experience these are common friction points:

Challenge Solution
Users fear losing files Review existing folder/file methodology and support a plan for backup and migration
Confusion between personal and work accounts Educate on OneDrive for Business vs personal OneDrive
Resistance to change Emphasize security and ease of use
Devices not eligible for Entra ID join Upgrade to Windows Pro or use hybrid join

 

Why Resistance Happens—and How to Address It

Changing user behaviour is never easy. We are comfortable with our habit. We tend to resist changing habits because it means expending effort. Common concerns when switching to Microsoft 365 Sign-in include:

  • “Will I lose my files?”
  • “Do I need to reset my computer?”
  • “Why can’t I keep using my personal account?”

To ease a transition of this kind across an organization, it helps to:

  • On-board select power users first
  • Communicate the benefits clearly
  • Offer support for content migration wit experience gained by power users
    • Provide training or walkthroughs
Admin Tips for a Smooth Rollout
  • Start with a pilot group (e.g., IT or field engineers)
    • include IT support and select power users to front-run adoption
  • Use Microsoft 365 Business Premium for full device management via Intune
  • Monitor sign-in activity and device compliance in the Entra Admin Center
  • Document the process for future onboarding
Summary

Transitioning users to Microsoft 365 sign-in and Entra ID is a strategic move that improves security, simplifies access, and clarifies data ownership. While it requires planning and support, the long-term benefits outweigh the initial effort. With Microsoft 365 Sign-In, you can elevate compliance standards to more closely align with Enterprise standards.

For small businesses with mixed licenses, this change ensures that every user is part of a secure, unified environment—whether they’re using Exchange Online, Business Basic, Standard, or Premium. Lastly, Microsoft 365 Sign-in automatically takes care of significant compliance issues which are often beyond the budget of small business.

To review our first article for an overview: Why Switching to Microsoft 365 Sign-In Matters for Small Businesses

About ComStat.uk: Internet Service Provider Comstat provides IT support, web hosting, and media services including website design, Microsoft 365 setup, and audio/video production, serving businesses across Denbighshire, North Wales and Wirral from Ruthin, and Lancashire and the Northwest from Bolton.

Why Switching to Microsoft 365 Sign-In Matters for Small Businesses

by | Sep 18, 2025

Introduction: Microsoft 365 Sign-In

Small businesses users still sign into their Windows devices using personal Microsoft accounts or “local” Windows user profiles. This may seem convenient, it creates confusion between personal and business data, especially when using tools like OneDrive. Using Microsoft 365 Sign-in allows users to separate personal and business content by signing into Microsoft 365 at Windows startup.

What’s the problem?

Field engineers have long known that 365 users store business files on personal OneDrive or local drives, making it hard for business owners to enforce data governance. This blurred line between personal and professional content can lead to:

  • Data loss or leakage
  • GDPR compliance issues
  • Difficulty in managing business data on user devices remotely

Microsoft 365 sign-in bypasses Microsoft personal accounts

Now, logging directly into your Microsoft 365 account at Windows startup dedicates Windows directly to your Microsoft 365 services and content. Meanwhile, you can still operate your personal content by logging into your existing Windows “personal” profile as you need to.

Article focus and goal

This is the first of two articles for business principals, global admins, and team leads. In this article, we explain the risks of current habits, and the benefits  of using Microsoft 365 sign-in in the workplace.

Click this link to read the second article in this series: How to Transition Users to Microsoft 365 Sign-in and Entra ID. 

Click open the headers below to learn about Microsoft’s recent security improvements with Microsoft 365 sign-in. 

What Is Microsoft 365 Sign-In?

Microsoft 365 sign-in means using your work account (e.g., name@company.com) to log into Windows and Microsoft apps. When a device is joined to Microsoft Entra ID (formerly Azure AD), users authenticate with their business credentials at startup. This means that the Windows desktop is governed by your Microsoft 365 services, not your Microsoft personal account. For instance, when you use Microsoft 365 Sign-in to start your workstation, the desktop you log into is a work desktop which is controlled by Microsoft 365.

Using Microsoft 365 sign-in you can use Microsoft 365 to:

  • Use Single Sign-On (SSO) to Outlook, Teams, SharePoint, and OneDrive
  • Operate improved security through Conditional Access and MFA
  • Enable centralized device visibility for administrators

Basic Microsoft 365 Sign-in features are included in all Business 365 licenses. Business 365 Premium and Enterprise 365 licenses include enhanced features that enable advanced device management and other configuration options.

Benefits for Business Owners and Admins

Adopting Microsoft 365 sign-in across your user base offers clear advantages:

1. Security – Microsoft 365 sign-in:

  • enforces password policies and MFA
  • reduces risk of unauthorized access
  • supports admin-level remote wipe of business data

2. Productivity – Microsoft 365 sign-in:

  • enables seamless access to Microsoft 365 apps
  • means fewer login prompts
  • permits better collaboration through shared resources

3. Data clarity – Microsoft 365 sign-in:

  • Separates personal and business content
  • Ensures files are stored in the correct OneDrive for Business location
  • Simplifies compliance and auditing
Why Resistance Happens—and How to Address It

Changing user behaviour is never easy. We are comfortable with our habit. We tend to resist changing habits because it means expending effort. Common concerns when switching to Microsoft 365 Sign-in include:

  • “Will I lose my files?”
  • “Do I need to reset my computer?”
  • “Why can’t I keep using my personal account?”

To ease a transition of this kind across an organization, it helps to:

  • On-board select power users first
  • Communicate the benefits clearly
  • Offer support for content migration wit experience gained by power users
    • Provide training or walkthroughs
When Is the Best Time to Switch?

The idealtime to move a user to Microsoft 365 Sign-in is when mnew workstations are deployed. is during new device setup, where Entra ID join can be enforced from the start. For all users, 365 licenses need to be reviewed to understand what levels or conditional access and policies will be operative in a user’s new environment. For existing devices, a planned onboarding process is needed to:

  • Compare existing files stores and prepare for migration
  • Reconfigure sign-in settings
  • Educate users on the new workflow

Successful planning is decisive. Our experience is that a gradual or organic adoption of is the best way to keep disruption to a minimum.

Summary and Next Steps

Adopting Microsoft 365 sign-in is more than a technical upgrade — it is a strategic move toward better security, productivity, and data management. For small businesses with mixed licenses like Exchange Online, Business Basic, Standard, and Premium, this shift ensures that every user is part of a unified, secure ecosystem.

Click this link to read the second article in this series: How to Transition Users to Microsoft 365 Sign-in and Entra ID

About ComStat.uk: Internet Service Provider Comstat provides IT support, web hosting, and media services including website design, Microsoft 365 setup, and audio/video production, serving businesses across Denbighshire, North Wales and Wirral from Ruthin, and Lancashire and the Northwest from Bolton.

How to Set Up a Microsoft 365 SharePoint Site for a Small Business

by | Sep 12, 2025

Using Global Admin To Set Up Shared Microsoft 365 Services

If you are running a small business with Microsoft 365 and have around four employees, you might be tempted to let everyone use OneDrive for Business to share files. I is simple, familiar, and feels like using a personal folder. When it comes to managing shared resources, though, SharePoint is the better choice.

Sharepoint sites should be set up by a global administrator. Why? Because shared services like SharePoint are central to your business. They hold files, folders, and data that multiple people need to access. If these services are created by individual users, folders and files can become fragmented, hard to manage, and even insecure. When an individual who sets up a Sharepoint site leaves your business, the site could be compromised without careful modifications.

A global admin ensures:

  • Consistency in naming, structure, and permissions.
  • Security by controlling who can access what.
  • Scalability for future growth or integration with tools like Microsoft Teams.

Even if you are not IT-literate, Microsoft 365 makes it surprisingly easy to set up a SharePoint site. You do not need to write code or understand complex systems—just follow a few guided steps, and get the basic steps according to Micrsoft’s conventional advice.

Click on the headers below to learn more about Microsoft 365 Sharepoint. Click on images to view at full-sized resolution. For guidance about BoxTrapper, please contact us for help.

Why Not Just Use OneDrive for Business?

OneDrive for Business is great for personal work files. But it’s not designed for team collaboration. Here’s why SharePoint is better for shared work:

  • Centralized Access: Everyone knows where to find files.
  • Permission Control: You decide who sees what.
  • Integration: SharePoint works seamlessly with Microsoft Teams, Outlook, and other 365 apps.

Using OneDrive for shared files can lead to confusion, version conflicts, and accidental data loss. SharePoint avoids these problems by offering a structured, secure environment.

How to Set Up a SharePoint Site in Microsoft 365

If you have not worked with Sharepoint or shared resources before, we recommend that you establish a “sandbox” site that you can experimaent with. This way you can work with other capable users in your workgroup to test features and behaviours before embarking on a “production” Sharepoint site. Also, we can provide help where services need to be deployed rapidly, or when non-standard features are needed.

Follow the steps below for a global admin to create a SharePoint site:

  1. Log in to Microsoft 365 Admin Center
    1. Go to https://admin.microsoft.com and sign in with your global admin account.
  2. Open SharePoint Admin Center
    1. From the left-hand menu, choose “Admin centers” > “SharePoint.”
  3. Create a New Site
    1. Click “Create” > “Team site.” Give it a name like “Sales Team” or “Operations.”
  4. Assign Owners and Members
    1. Add yourself as the owner and include relevant employees as members.
  5. Set Permissions
    1. Decide who can edit, view, or manage files. You can always adjust these later.
  6. Start Uploading and Organizing Files
    1. Use folders to keep things tidy. You can also add document libraries, calendars, and lists.
  7. Connect to Microsoft Teams (Optional)
    1. If your team uses Teams, you can link the SharePoint site directly for easy access.
Why You Should Fragment Sites by Department or Role

Even in a small business, not everyone needs access to everything. Creating separate SharePoint sites for different teams or roles helps to:

  • Protect Confidential Information
    • For instance, HR files should not be visible to sales staff. Finance documents should be restricted.
  • Improve Security
    • Fewer people with access means fewer chances of accidental changes or leaks.
    • In the event of an external hack, segmented sites frustrate hacking attempts.
  • Simplify Collaboration
    • Each team gets a space tailored to their needs, without clutter from other departments.

Example structure

Organizations have differing needs so there is no uniform site structure that is “right”. However, most businesses have common “departments” that classify files and data, like:

  • Sales Site: For client proposals, CRM exports, and pitch decks.
  • Finance Site: For invoices, budgets, and payroll.
  • HR Site: For contracts, onboarding documents, and policies.
  • IT Site: for managing IT assets and connecting to external support

In this way, this kind of structured approach makes it easier to manage permissions, scale resources, and audit access later on.

Summary

Setting up a SharePoint site in Microsoft 365 does nt require deep technical knowledge. Global admins are in the best position to create a secure, organized, and scalable environment for your team. Avoid the pitfalls of using OneDrive for shared work, and embrace SharePoint for what it’s built to do—collaborate securely and efficiently. It is no secret – Onedrive for one, Sharepoint for sharing.

If you are unsure where to start,  do not be afraid to get in touch. We have a wealth of experience and even if we do not have an immediate solution, our job is to know where to find the right answer fast.

About ComStat.uk: Internet Service Provider Comstat provides IT support, web hosting, and media services including web design, Microsoft 365 setup, and audio/video production, serving businesses across Denbighshire, North Wales and Wirral from Ruthin, and Lancashire and the Northwest from Bolton.