How to set up a small business IT network – a jargon-free guide

An IT network gives your workforce access to the internet and other services like VoIP, allowing employees to communicate and share files with clients, customers, and each other.

As remote and hybrid work has become more common, networks must also support secure connections for employees working from various locations.

If a network malfunctions, it can even temporarily shut down your business’s operations, causing significant financial losses.

Small businesses often use a Local Area Network (LAN), which means a group of interconnected computers and other devices located within the same area, usually inside the same building.

However, many small businesses are now integrating cloud-based solutions to support remote workers and improve flexibility.

The decisions you make when setting up a small business data network can have implications for your business for years to come.

Getting it right is crucial, so let’s look at how to set up a small business network.

Evaluating What Your Business Needs

Because there is no one-size-fits-all IT network solution, you must analyse your business’s needs before building the network and investing in hardware and cabling.

Some factors to consider are the number and type of devices you’ll be connecting, as well as the size and layout of your office.

On the digital side, what files will employees share, and which applications will they run? Will you be implementing levels of access?

It’s also important to consider future expansion since the network will have to grow as the number of computers increases.

You may not need superfast connection speeds now, but what about in five years?

With the rapid evolution of technology, it’s important to plan for scalability to accommodate new devices and applications, especially with cloud-based tools and remote access.

Wired or Wireless?

Because of convenience and ease of installation, wireless networks have become essential for offices. Employees can have internet access as long as they’re within the area covered by the network and even connect devices such as smartphones and tablets.

Modern offices often implement Wi-Fi 6 or Wi-Fi 6E, offering faster speeds, better security, and more reliable connections than previous wireless standards.

However, wireless networks can still be less secure, and data is more vulnerable to outside attacks if not properly protected.

While Wi-Fi technology has improved, wired networks offer higher security and speed, especially when handling large files such as detailed engineering diagrams or video clips.

For this reason, most offices still opt to install wired networks alongside wireless ones.

The first benefit is faster speed, which becomes especially important for bandwidth-intensive applications. In addition, it’s much harder to hack a wired network from outside.

Having both a wired and a wireless network works well since it provides convenience, security, and speed.

Many businesses also use hybrid networks that combine the flexibility of wireless with the reliability of wired connections.

Basic IT Network Components

When building an IT network, make sure that you select high-quality components, which will consist of the following:

Server

An IT network has at least one server, which is a primary computer that stores data and sends it between computers. Instead of keeping the data on several computers, storing it on the server is more secure, and you can better control who has access to it.

Servers can be on-site or cloud-based. On-site servers give you direct control over your data, while cloud servers outsource the technical responsibility and allow for more flexible access from remote locations.

Many small businesses now opt for a hybrid model, using on-site and cloud servers for better scalability and resilience.

Cables

Both wired and wireless networks rely on cables. Even with wireless networks, the access point is connected to the overall network through cables. These are the two kinds of cables used for the network backbone:

• Copper: Twisted pair cables made of copper wire are the traditional choice. These look the same, but copper cabling standards give rise to several categories, from Cat3, Cat4, and so on up to Cat8. Each is an upgrade of the previous, with higher categories having faster speeds and frequencies.Copper is affordable and widely used but is not the fastest at transmitting data. Data can also be distorted by electromagnetic interference, such as from heavy machinery or motor controls.
• Fibre Optic: Fibre optic cables are made of small strands of glass that transmit data as beams of light. They’re future-forward and easy to run, and they’re very appealing because of their unmatched data speed and durability even in rougher environments.While copper still dominates due to legacy installations, many businesses are switching to fibre optic to future-proof their networks. Fibre optic is becoming increasingly affordable and offers superior performance for modern data needs.

Switches and Routers

Switches and routers are a network’s building blocks, providing connectivity to several devices.

• Switches: Switches act as a central point that connects all devices, including computers and servers. Before data can pass from one computer to the server, it has to go through a switch first.Many small businesses choose an unmanaged switch, which can be installed immediately without complex configurations. However, managed switches are becoming more accessible and offer additional control and security features.
• Routers: Routers link two networks together to produce a shared connection. Aside from forming a cohesive intranet for your business, routers also connect the devices in your network to the Internet. They’re smarter than switches and can protect your network from cyber threats and prioritise devices when resources are limited.Many routers now come equipped with advanced security features, and Next-Generation Firewalls (NGFW) are increasingly popular for defending against modern cyber threats.

A Network to Grow with Your Business

Your small business’s IT network will be there for the long haul, so you want to set a solid foundation right from the start. Components should be reliable, secure, easy to manage, and have minimal downtime.

Since your network will evolve alongside your business, it should be able to adapt well to new features such as integrated messaging, cloud services, and Voice over Internet Protocol (VoIP).

Cybersecurity should also be a key priority for all small businesses, with measures such as multi-factor authentication and network segmentation to safeguard your data.

Although it’s rarely ever in the spotlight, your network lies right at the heart of your business, and getting it right is crucial.

This guide was initially written for ByteStart by James Nash, director of Bristol-based data networking company TVNET. It was updated by the ByteStart team in September 2024.