Small businesses are a primary target for cyber attacks. The 2026 Verizon DBIR found that 43% of all data breaches involved small businesses, and credentials were the #1 attack vector. The good news: effective password policies don't require a dedicated IT team or expensive software.
This is the single most impactful policy you can implement. Require all employees to use a password manager (Bitwarden, 1Password, or Keeper) for business accounts. This eliminates password reuse and weak passwords at the source. Many small business plans cost less than $5/user/month.
Require multi-factor authentication for all business accounts. Email, payroll, banking, CRM, and admin accounts should all have MFA enabled. Use TOTP authenticator apps — not SMS — for the best balance of security and convenience.
NIST SP 800-63B recommends a minimum of 8 characters for user-chosen passwords and recommends against complexity rules (mixed case, symbols, periodic rotation). Instead, enforce a minimum 12-character policy and encourage passphrases. Discourage regular rotation — force changes only after a known compromise.
For Microsoft 365, Google Workspace, and Active Directory, enforce password policies via the admin console. Set minimum length (12+), disallow common passwords (via Azure AD Password Protection or similar), and require MFA. Most platforms offer these settings at no extra cost.
Your policies are only as effective as your team's compliance. Run a 15-minute training session covering: how to use the password manager, how to recognize phishing attempts, and how to report suspected compromises. Annual refresher sessions keep security top of mind.
Generate business-strength passwords for your team. Free password generator.