Setting Up a Small Business Network: Step-by-Step Guide

Whether you are moving into a new office, upgrading from a consumer setup, or opening your first business premises, a properly designed network is the foundation for everything your business does digitally. Email, cloud applications, phone systems, printers, and security cameras all depend on a reliable network.

This guide walks you through setting up a small business network from scratch, covering hardware selection, configuration, and best practices for offices with 5 to 30 staff.

Planning Your Network

Before purchasing any equipment, plan what you need.

Assess Your Requirements

Number of devices: Count every device that will connect to the network:

• Desktops and laptops (wired or WiFi)
• Mobile phones (WiFi)
• Printers and scanners
• VoIP phones
• Security cameras
• Smart TVs or displays
• Any other networked devices

Internet requirements: Estimate your total bandwidth needs. For general office use (email, web, cloud applications), plan for 5 to 10 Mbps per concurrent user. For businesses that rely heavily on video conferencing or transfer large files, plan for more.

Wired vs wireless: Determine which devices will use wired connections and which will use WiFi. Generally:

• Desktops, VoIP phones, printers, and servers should be wired for reliability.
• Laptops, mobile phones, and tablets typically use WiFi.

Network services: Will you run any on-premises servers? Do you need a VPN for remote access? Do you have VoIP phones that need PoE (Power over Ethernet)?

Design the Network Layout

Sketch a simple network diagram showing:

• Where your internet connection enters the building.
• Where the firewall and switch will be located (ideally in a dedicated, lockable network cabinet).
• Where wired network ports are needed (at desks, in meeting rooms, at printer locations).
• Where WiFi access points will be placed for optimal coverage.

Engage a qualified cabler if you need to run new Ethernet cables. Use Cat 6 or Cat 6A cable for future-proofing — it supports higher speeds and is not significantly more expensive than Cat 5e.

Equipment You Will Need

Here is the essential equipment for a small business network:

1. Business Internet Connection

Contact your internet service provider and choose a business-grade plan. Key considerations:

• Speed: For 10 to 20 users, a plan with 50 to 100 Mbps download and 20 to 40 Mbps upload is generally sufficient.
• Static IP address: Needed if you will run a VPN, host services, or need consistent remote access.
• SLA: Business-grade plans often include service level agreements with faster fault resolution.
• NBN technology: If you are on NBN, FTTP or FTTC provides the best experience. FTTN is variable depending on your distance from the node.

Budget: $100 to $500 per month depending on speed and SLA.

2. Firewall/Router

The firewall is the most critical piece of network security equipment. Do not use the modem/router provided by your ISP as your primary network device.

Recommended for small offices:

• Fortinet FortiGate 40F: Excellent next-generation firewall with IPS, web filtering, and VPN. Approximately $600 plus $300/year for security subscriptions.
• SonicWall TZ270: Solid SMB firewall. Similar pricing to Fortinet.
• Ubiquiti UniFi Dream Machine Pro: More affordable option with good routing and basic firewall features, though less sophisticated on advanced security. Approximately $600.

The firewall connects to your ISP modem and serves as the gateway for all network traffic.

3. Network Switch

A switch connects all your wired devices. Key specifications:

• Ports: Count your wired devices and add 25% for growth. For 15 wired devices, a 24-port switch is appropriate.
• PoE (Power over Ethernet): If you have VoIP phones or WiFi access points, PoE eliminates the need for separate power supplies. Look for a switch with enough PoE budget for your devices.
• Managed vs unmanaged: A managed switch allows VLAN configuration and QoS, which are important for VoIP and network segmentation. An unmanaged switch is cheaper but offers no configuration options.

Recommended:

• Ubiquiti UniFi Switch 24 PoE: Managed switch with 24 ports and PoE. Approximately $500.
• Cisco Catalyst or SG series: Enterprise-grade reliability. $400 to $1,200 depending on model.
• HPE OfficeConnect or Aruba Instant On: Good mid-range options. $300 to $800.

4. WiFi Access Points

Do not rely on the WiFi from a consumer router. Business-grade access points provide:

• Better range and performance
• Support for more simultaneous devices
• Centralised management
• VLAN support for network segmentation

Recommended:

• Ubiquiti UniFi U6-Lite or U6-LR: Excellent performance at a reasonable price. $150 to $250 each.
• Cisco Meraki MR series: Cloud-managed with excellent features, but requires an annual licence. $300 to $600 each plus licence.
• Aruba Instant On: Good balance of features and price. $200 to $400 each.

How many? One access point covers approximately 50 to 100 square metres effectively (depending on walls and interference). A small office of 200 square metres typically needs 2 to 3 access points.

5. Network Cabinet

A wall-mounted or freestanding network cabinet keeps your equipment organised, secure, and properly ventilated. A 12U or 18U wall-mount cabinet is sufficient for most small offices. Cost: $200 to $500.

6. Uninterruptible Power Supply (UPS)

A UPS protects your network equipment from power surges and provides battery backup during short outages, keeping your network running while you save work and shut down gracefully.

Recommended: APC Smart-UPS 1500VA or similar. $400 to $700. Ensure it has enough capacity for your firewall, switch, and access points.

Step-by-Step Setup

Step 1: Physical Installation

1. Install the network cabinet in a well-ventilated, secure location.
2. Mount the firewall, switch, and patch panel in the cabinet.
3. Connect the ISP modem to the firewall’s WAN port.
4. Connect the firewall’s LAN port to the switch.
5. Connect WiFi access points to the switch (using PoE if available).
6. Connect all structured cabling to the patch panel and cross-connect to the switch.
7. Connect the UPS and plug critical equipment into it.

Step 2: Configure the Firewall

This is the most technical step and may require your IT provider’s assistance.

Essential configuration:

• Set up the WAN connection (static IP or DHCP depending on your ISP plan).
• Configure the LAN subnet (typically 192.168.1.0/24 or 10.0.0.0/24).
• Enable DHCP to automatically assign IP addresses to devices.
• Set DNS servers (your ISP’s, or better yet, a filtering DNS like Cisco Umbrella or Cloudflare).
• Configure firewall rules: default deny inbound, allow necessary outbound.
• Enable intrusion prevention system (IPS).
• Enable web filtering.
• Set up VPN if remote access is required.
• Configure QoS if using VoIP phones.
• Change the default admin password to something strong.
• Enable logging.

Step 3: Configure VLANs

Set up at least three VLANs on your switch and firewall:

• VLAN 10 — Corporate: Staff computers and business devices.
• VLAN 20 — Guest: Guest WiFi, completely isolated from the corporate network.
• VLAN 30 — IoT/Phones: VoIP phones, security cameras, and other IoT devices.

Configure firewall rules between VLANs to control what traffic can cross between segments.

Step 4: Configure WiFi

Set up wireless networks on your access points:

• Corporate SSID: WPA2-Enterprise (with RADIUS) or WPA2-Personal with a strong passphrase. Assigned to the corporate VLAN.
• Guest SSID: WPA2-Personal with a simpler password (that you change regularly). Assigned to the guest VLAN. Implement a captive portal if desired.
• IoT SSID (optional): For wireless IoT devices. Assigned to the IoT VLAN.

Position access points centrally and at consistent height (ceiling-mounted is ideal). Avoid placing them near metal objects, microwaves, or other sources of interference.

Step 5: Connect and Test Devices

Connect devices to the network and verify:

• Wired devices receive IP addresses via DHCP.
• WiFi devices can connect to the appropriate SSID.
• Internet access works from all VLANs.
• Corporate devices can reach internal resources (servers, printers).
• Guest devices can access the internet but cannot reach corporate resources.
• VoIP phones have clear call quality.

Step 6: Configure Printers

• Connect printers to the network (wired connection preferred for shared printers).
• Assign static IP addresses or DHCP reservations to printers so their address does not change.
• Install printer drivers on staff computers.

Step 7: Document Everything

Create a network documentation package:

• Network diagram showing all equipment and connections.
• IP address scheme (subnets, VLAN assignments, static IPs).
• WiFi SSIDs and passwords.
• Firewall admin credentials (stored securely).
• Switch and access point management credentials.
• ISP account details and support contact.
• Hardware serial numbers and warranty information.

Store this documentation securely — it contains sensitive information. Your MSP should also have a copy.

Budget Summary

For a small office with 15 to 20 users:

Item	Estimated Cost
Business internet setup	$0 - $300 (one-time)
Firewall	$600 - $1,200
Firewall security licence (annual)	$300 - $600
24-port PoE managed switch	$400 - $800
WiFi access points (3 units)	$450 - $1,200
Network cabinet	$200 - $500
UPS	$400 - $700
Cabling and patch panels	$500 - $2,000
Professional installation and configuration	$1,500 - $3,000
Total	$4,350 - $10,300

Ongoing costs: Internet ($100 to $500/month), firewall subscription ($300 to $600/year).

Ongoing Maintenance

A network is not “set and forget.” Regular maintenance keeps it running securely:

• Monthly: Check for firmware updates on firewall, switch, and access points. Review firewall logs for unusual activity.
• Quarterly: Review and update WiFi passwords. Verify network documentation is current. Check UPS battery health.
• Annually: Review the overall network design. Assess whether performance meets business needs. Plan for any necessary upgrades.

If you have a managed IT services provider, these tasks should be part of their service.

Common Mistakes to Avoid

• Using consumer equipment: Consumer routers and switches lack the security features, performance, and management capabilities businesses need.
• No network segmentation: Putting everything on one flat network makes it easy for a compromise to spread.
• Weak WiFi passwords: Use long, random passwords for corporate WiFi. Change the guest password regularly.
• No documentation: When the person who set up the network is unavailable, documentation is essential.
• Insufficient WiFi coverage: Dead spots frustrate staff and push them to use personal hotspots, bypassing your security.
• No UPS: A power surge can destroy network equipment. A UPS is inexpensive insurance.
• Ignoring updates: Network device firmware updates include security patches. Keeping them current is critical.

Getting Started

If your office is running on consumer equipment or has grown beyond its original network setup, a proper business network is one of the best investments you can make. Start by planning your requirements, engage a qualified IT provider for the installation, and establish ongoing maintenance practices.

A well-designed network is invisible when it works — which is exactly the point. Your team should be able to focus on their work without thinking about connectivity, and you should be confident that your business is operating on a secure, reliable foundation.