If you’re a small business owner trying to keep costs down, it’s tempting to purchase a single Microsoft 365 Personal license and share it among your employees. After all, why pay more when you can “make it work”? Unfortunately, this shortcut quickly backfires—and I’ve seen it happen to countless businesses.
As someone who works closely with business IT every day, let me save you a world of hassle: using a personal license for business is both risky and inefficient. Here’s why:
The Hidden Challenges of Sharing a Microsoft 365 Personal License
1. Security and Compliance Risks
When multiple employees share a single personal license, Microsoft treats all devices and users as one individual. This means:
- No centralized security settings
- No admin controls
- No user management
This setup leaves your business wide open to security breaches and compliance failures. If you’re storing business documents in OneDrive Personal, anyone with access can see all your data—both personal and professional. Imagine if a sensitive client file ended up in the wrong hands!
2. Lack of Access Control
Let’s say an employee leaves your business. With a Business license, you can easily revoke their access. With a shared Personal license? You can’t. This opens the door to ex-staff potentially accessing sensitive information long after they’ve moved on.
3. Collaboration Setbacks
Microsoft 365 Business Premium is built for seamless teamwork. Your employees can:
- Use Microsoft Teams for chat and meetings
- Work together in SharePoint and OneDrive for Business
- Manage permissions centrally and securely
With OneDrive Personal, you’re limited:
- No shared team folders
- No business-grade admin controls
- No true collaboration features
4. Scalability Nightmares
As your business grows, you’ll eventually need to migrate to a proper business solution. Making the switch later on can be disruptive, costly, and time-consuming. It’s much easier (and more cost-effective!) to start on the right foot with business-appropriate licensing.
Where You Buy Matters, Too
I always recommend buying Microsoft 365 direct from Microsoft, not through third-party providers like GoDaddy.
Buying direct gives you full control through Microsoft’s robust admin console—allowing you to set security policies, add or remove users, and manage your environment with ease.
Third-party sellers like GoDaddy might appear convenient, but they often provide a stripped-down admin experience. You’ll have fewer options, less control, and added complexity if you ever need to move or upgrade your setup later.
Key Takeaways for a Successful Business IT Admin Setup
- Assign a Microsoft 365 Business Premium license for every employee—no sharing!
- Each staff member needs their own license for compliant, secure, and efficient operations. All this is managed by the business owner & IT Support.
- Invest in Endpoint Security & Management
- Use a paid-for, business-grade endpoint security/anti-malware solution ( we can help with this)
- Protects against malware, ransomware, and other online threats while allowing for centralized management of devices.
- Implement Data Backup and a Disaster Recovery Plan
- Microsoft 365 data should be backed up with a third-party solution (such as Redstor, or Acronis).
- Draft (and test!) a disaster recovery plan so you can recover quickly from unexpected events—whether it’s hardware failure, accidental deletion, or cyberattack.
- Keep Spare Hardware on Hand
- Have at least one spare, pre-configured laptop or desktop in the office. Hardware failures happen—be ready to get staff back online instantly.
- Partner with Professional IT Support
- Don’t gamble with DIY IT. Arrange for professional support through block hour packages or a support contract with a trusted provider like us at Cranfield IT Solutions.
- Fast, expert help when you need it most—saving you stress and lost productivity.
Set Your Business Up for Success
It’s tempting to cut corners and save a few pounds today, but this approach can cost your business much more in the long run—from lost productivity and data breaches to endless admin headaches.
Take it from a business IT professional: invest in the right Microsoft 365 Business licenses from the start. Your data, your team, and your future self will thank you!