Guide

How to choose the right Microsoft 365 plan for your small business

By Ranjal 12 May 2026 6 min read

Most small businesses we meet are either not using Microsoft 365 at all, or paying for a plan that does not match how their team actually works. Picking the right one is not complicated once you know what each tier is actually for.

Compare the plans

The three plans, in plain English

Pick based on how your team actually works, not by feature count.

Business Basic

A professional email address on your own domain, plus Teams, SharePoint and OneDrive - all through a web browser or mobile app. There is no installed desktop version of Word or Excel. It suits staff who mostly need email, chat and shared files, and are comfortable working in the browser.

Business Standard

Adds the fully installed desktop apps - Word, Excel, Outlook, PowerPoint - on up to five devices per user, along with webinar hosting and basic booking tools. This is the plan most small businesses end up on, because most staff still expect a "real" desktop copy of Office.

Business Premium

Includes everything in Standard, plus advanced security: device management, conditional access, protection against phishing, and tools to remotely wipe a lost laptop or phone. Built for businesses handling sensitive client data, or anyone who needs to meet a compliance or insurance requirement around data protection.

How to actually decide

Count how many staff genuinely need the desktop apps versus those who only check email and chat

Check whether you are contractually or legally required to prove data protection controls (NDIS providers, healthcare, finance and trades handling client contracts often are)

Think about device loss risk - if staff use laptops or phones outside the office regularly, remote wipe capability in Premium is worth the extra cost

Remember you can mix plans across your team rather than putting everyone on the same licence

Common mistakes we see

The most expensive mistake is putting every staff member on the top-tier plan "to be safe" without anyone using the extra features - that is pure waste, every month, forever. The second most common mistake is the opposite: staying on Basic because it is cheaper, then losing hours a week to staff working around the lack of desktop apps.

The other issue we fix constantly is businesses that bought a plan correctly, but never configured it properly - no custom domain email, no folder structure in SharePoint, no security baseline. The licence is only half the job; proper setup is what actually makes it useful.

Frequently asked questions

Business Basic gives you business email, Teams, SharePoint and OneDrive through a web browser and mobile apps only. Business Standard adds the fully installed desktop versions of Word, Excel, Outlook and PowerPoint, plus Teams webinar and small-business tools like Bookings.

Only if you need advanced security controls such as device management, conditional access, or protection against phishing and identity theft. Most teams under 15 people are well served by Standard until they are handling sensitive client data or regulated information.

Yes. It is common and often the cheapest approach - for example, giving Standard licences to staff who need desktop apps and Basic licences to casual staff who only need email and Teams on the web.

Current Microsoft 365 pricing changes periodically, so we always check the live Microsoft pricing page before recommending a plan rather than quoting from memory. If you want a second opinion on what your team actually needs, that is a free conversation.

Ranjal Solutions and growth at Trivion - websites, dashboards, automation and AI for Sydney small businesses.