Startup / Small — Post S1 (IAM)
Focus: Building a secure identity foundation with no-cost or low-cost tools that get you to MFA, SSO, clean offboarding, and simple automation without breaking the bank.
Next: Post S2 covers lightweight governance (IGA) with the same pragmatic mindset.
TL;DR
You don’t need a six-figure budget to build a strong identity backbone.
You need a few free or affordable tools, a little discipline, and a simple offboarding workflow that always works.
By the end of this guide, you’ll:
- Centralize user access (SSO where it matters)
- Enforce phishing-resistant MFA
- Automate onboarding/offboarding in Active Directory or Entra ID
- Keep a basic audit trail (even if it’s just CSV logs)
- Build habits you can grow into, not throw away
1. Why startups can’t skip IAM
Startups run lean. That’s the risk: one shared password on a growth team, one ex-contractor with a saved API key, or one unexpired Microsoft 365 account can tank investor trust overnight.
Security doesn’t need to slow you down — but every account must trace back to one person. That’s IAM 101, whether you’re three people or thirty.
2. Define your “source of truth” (even if it’s just a spreadsheet)
If you don’t have an HRIS yet (Workday, BambooHR, etc.), designate one authoritative list of employees and contractors.
- A Google Sheet or Excel file is fine to start.
- Columns: Name, Start Date, End Date, Manager, Email, Apps.
- This is the “HR → IT trigger.” Once someone leaves, the next column should say “Deactivate in X minutes.”
When you do get an HRIS, most of them support API webhooks that can replace the sheet easily.
3. Your minimal IAM tech stack (no cost or low cost)
Here’s the “Good/Better/Best” for startups and small teams.
🟢 Good — “Free but Structured”
- Microsoft Entra ID Free or Google Workspace Basic for account control
- Microsoft Authenticator or Google Prompt/Passkeys for MFA
- Bitwarden Teams (Free tier) or Proton Pass Business for shared credentials (no spreadsheets!)
- Wisesoft Bulk AD Users for quick provisioning/deprovisioning of on-prem or hybrid AD accounts
- Batch import from CSV, set group membership, and enable/disable in bulk
- Great for “Friday terminations” when you need fast offboarding
- Simple PowerShell scripts for onboarding and cleanup logs
Get-ADUser/Disable-ADAccountscripts can be scheduled daily
- Shared storage audit via SharePoint/Google Drive permissions export
🟡 Better — “Automate Lightly”
- Softerra Adaxes (small license) for delegation, approval workflows, and email notifications
- Automate JML: when a user is created, auto-assign groups, licenses, and home drives
- Use the built-in web portal for manager self-service
- Entra ID P1 Trial or Free Tier: Conditional Access Lite — block legacy auth, require MFA for admin roles
- 1Password Teams Starter ($20/mo flat) if you want better shared secrets UX
- Intune (if licensed) or Kandji Free Tier for device MFA enforcement
🔵 Best (Still Affordable)
- Combine Adaxes + Entra Free/P1:
- HR spreadsheet → PowerShell trigger → Adaxes policy → automatic group/license assignment
- Layer a free SCIM connector (GitHub, Atlassian, Slack, Zoom, etc.) where available
- Add a simple audit folder: all scripts and actions dump to
/Logs/Identity_Actions/YYYY-MM-DD.log
This “stack” costs under $100/month, but it replaces manual chaos with traceable automation.
4. Step-by-step: 90-day plan
Weeks 1–2: Inventory & MFA
- List every app with credentials or admin accounts (email, payroll, project tools).
- Enable MFA or passkeys everywhere you can.
- Document who owns which app.
Weeks 3–4: Centralize & Simplify
- Ensure every person uses a named account (no shared logins).
- Move shared passwords into Bitwarden Teams or 1Password Teams.
- Standardize usernames ( first.last@company.com or similar).
- Start saving app data in a single “Access Register” sheet.
Weeks 5–8: Automate Offboarding
- Deploy Wisesoft Bulk AD Users or Adaxes for batch disablement.
- Script an “Exit Mode”: disables user in AD/Entra, resets password, moves to “_DisabledUsers” OU, notifies manager.
- Review accounts monthly — clean or archive.
Weeks 9–12: Audit & Tighten
- Export MFA reports (from Entra or Google).
- Run
Get-ADUser -Filter * -Properties Enabled,LastLogonDateto spot dormant accounts. - Build a basic “leaver checklist” for managers.
- Set quarterly reminders for account cleanup.
If you reach this point, you’ve built a repeatable process that auditors (or investors) will love.
5. Microsoft-first vs Google-first vs Hybrid
| Track | Core Platform | MFA | Directory Automation | Device / App Notes |
|---|---|---|---|---|
| Microsoft-first | Entra ID Free + AD (optional) | Microsoft Authenticator | Wisesoft Bulk AD Users or Adaxes | Use Intune (if available) for compliance gates |
| Google-first | Workspace Basic | Google Prompt / Passkeys | GAM (Google Admin Scripts) + CSV imports | Enable Context-Aware Access (beta) |
| Hybrid | Entra ID Free + Workspace | Either Authenticator or Passkeys | Use Adaxes for AD; connect Workspace via SCIM | Manage identities once, sync to both clouds |
The goal isn’t perfect sync — it’s consistency.
Hybrid is fine if roles are clear: Microsoft handles device trust, Workspace handles productivity.
6. Security habits > software features
Even free tools can do great work when habits are consistent:
| Habit | Description | Cost |
|---|---|---|
| Named accounts only | No generic logins. Tie every action to a person. | $0 |
| MFA on everything | Use Authenticator or Passkeys, never SMS if possible. | $0 |
| Central password vault | Replace Excel or sticky notes with Bitwarden or Proton Pass. | ~$10–$20/mo |
| Quarterly reviews | Manager checks “who has what.” Manual is fine for now. | $0 |
| One-click offboarding | Script or Adaxes workflow to disable & notify. | Free to low |
These five alone cover 75% of real startup breach vectors.
7. Looking ahead
Once IAM feels predictable:
- Replace manual reviews with Linx IGA or lightweight attestations.
- Add Okta Starter, Entra P1, or JumpCloud Free for unified SSO later.
- Integrate your HR source (API or webhook) to trigger JML automatically.
- Start logging approvals and deprovisions — that’s your IGA runway.
You’re not buying peace of mind — you’re building it, one low-cost control at a time.
Software mentioned (official links)
- Microsoft Entra ID — https://www.microsoft.com/en-us/security/business/identity-access/microsoft-entra-id
- Google Workspace / Cloud Identity — https://workspace.google.com/
- Wisesoft Bulk AD Users — https://www.wisesoft.co.uk/software/bulkadusers/
- Softerra Adaxes — https://www.adaxes.com/
- Bitwarden Teams — https://bitwarden.com/products/teams/
- 1Password Teams Starter — https://1password.com/business/
- Proton Pass Business — https://proton.me/pass/business
- JumpCloud — https://jumpcloud.com/
- Linx Identity Security Platform — https://www.linx.security/
Disclaimer: This article is intended as a general guideline for developing a startup-friendly IAM foundation. It is not an implementation plan and should not replace professional security or compliance advice. Always assess your organization’s unique risks, regulatory requirements, and technical environment before applying any recommendations.
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All products, costs, and capabilities reflect their latest free or low-cost tiers as of Q4-2025. Practical guidance verified against Microsoft, Google, and vendor documentation.