Why Your Business Needs to Use Two-Factor Authentication (And How to Set it Up)

Who is this for?
This article is for solopreneurs and small business owners with 10 or fewer employees or contractors, especially those running digital-first businesses. You may be working with remote teams, online platforms, and customers spread across the globe. If that sounds like you, read on.

What is Two-Factor Authentication (2FA)?
Two-factor authentication is a security method that requires two steps to verify your identity when logging into an account.

Think of it like a nightclub with two bouncers:

1. The first bouncer asks for your name (your password) to see if you’re on the list.

2. The second bouncer asks for your license (your phone or fingerprint) to make sure you are who you say you are.

It’s a simple way to dramatically boost your security. Even if a hacker steals your password, they won’t have the second “factor” to break in.

Why Use Two-Factor Authentication?
If you’re like most business owners, you’re using a lot of software: email, CRMs, payment systems, social media, maybe even AWS or Shopify. Every login is a potential point of attack.

Without 2FA, a single compromised password could mean:

• Your customer data is exposed

• Your money gets stolen

• Your reputation takes a hit

And no, strong passwords alone aren’t enough. Phishing scams, brute force attacks, and credential stuffing (where hackers test stolen logins across multiple sites) are easier than ever, thanks to AI automation.

Adding 2FA is the fastest way to shut that down.

Is Two-Factor Authentication Secure?
In a word: yes. In fact, it’s one of the top recommendations from security professionals, including Google and Microsoft. It won't bulletproof your security, but it reduces your risk significantly.

Even better: most major platforms support it out of the box. No need for complicated tech. Just flip the switch on in your device or platform settings.

How Do I Set Up Two-Factor Authentication?
For most tools, it takes under five minutes. Here are some ways to set it up:

1. Choose Your Method:

   • Text message (least secure, but better than nothing)

   • Authenticator app (like Google Authenticator or Authy – our recommendation)

   • Hardware keys (most secure, used by advanced users)

2. Turn It On:

   • Go to the security settings in your app (Google, Microsoft, Slack, etc.)

   • Find the “Two-Factor Authentication” or “2FA” option

   • Follow the instructions to link your phone or app

3. Save Your Backup Codes:

   • Most services will offer unique backup codes in case you lose your 2FA device (aka, your phone)

   • If you have a password manager store them there

   • We also recommend printing them out and storing them in a safe place, such as a fireproof box

What Next?
Once 2FA is enabled on your main tools (email, financial apps, business dashboards), encourage your team to do the same. It’s a low-effort, high-reward way to lock down your business.

If you haven’t already, now’s a great time to combine this with a password manager. That way, you’ve got strong passwords and 2FA working together to keep your business secure.

Still unsure? Ask yourself this:
If someone guessed your main password today, how screwed would you be?

Let’s not find out.

What Else Can You Do to Protect Your Business?

Are you sure your business is protected from cyber attackers? If you lost access to your email or bank account today, would you know what to do next?

That's why we created Small Business Owner Security Survival Guides.

They are simple, easy-to-follow instructions that show you how to:

• Prevent cyber attacks before they happen and

• Quickly recover if you do get hacked

No jargon and no technical expertise required. Simple business security that works. Click here to get yours.