Owning a successful business is truly something surreal; there is nothing better than pursuing your dreams. Everything is going smoothly; sales are good, profits are skyrocketing, and you have the best pool of talent; what else can you wish for?
Wait a minute; you might have skipped something very important. Have you thought about your data storage practices? Is your business data safe from external or even internal threats; you cannot eliminate the possibilities of “black sheeps” in your organization, can you?
Or, how do the stakeholders access your business data? Are you satisfied with how business data is stored, accessed, or shared within or outside your organization? Are you looking for better data storage and management options? Have you considered using a virtual data room?
Let’s slow down a little; the security of your business data is as important as anything else in your organization. Are you using the best possible security measures? If not, this is the time to employ one of the safest options to keep your business data protected. Yes, we are talking about online data room software.
So what is a virtual data room? Why does your business need a data room? Let’s find out!
What is a virtual data room?
A virtual data room, aka electronic data room, is simply an online storage space or repository that keeps the data safe from any internal or external threats.
An electronic data room is not just an ordinary repository; instead, virtual data room vendors employ standardized or globally approved security features to ensure that chances of data theft can be minimized. Furthermore, data room software makes it easy to share and access data from anywhere at any time.
The next question is, why does your business need secure data room services? Let’s find out!
Top 4 signs your business needs online data room software
1. Better document preservation
Honestly, who uses those massive and “suffocated” physical data storages nowadays. Well, for starters, paper documents need a lot of space as your organization grows older. That means you have to keep “10-year old documents” or maybe more than that.
Sales records, inventory details, employees data, marketing plans, financial statements, minutes of meetings, and the list goes on. Imagine you have to store all this information in paper form? Or what if you have to find a file from a 5-year-old record?
Virtual data rooms can be the only and the most suitable answer to all your data storage needs. Data room vendors generally provide more than enough online storage to make sure that you have every single piece of data stored in your data room. Besides, you can always upgrade your subscription.
2. Impeccable data security
Data preservation is one thing, but preserving data safely is equally important. Virtual data rooms have built-in security features that ensure your data is totally safe from any threats. Data room software employs two-way authentication and data encryption features for maximum data security. This also allows data room users to share information with each other easily.
Apart from that, data room administration can set access restrictions for different users according to their roles and responsibilities. Admin can also set restrictions on downloading or printing any document(s).
- Top virtual data room providers always comply with internal data security standards such as ISO 27001 and FINRA.
3. Easy access for investors, stakeholders, and auditors
One of the biggest challenges for businesses is to make sure that investors and stakeholders have access to financial statements, progress reports, etc., because it is highly possible that investors are from different regions. So how can you make sure that they get what they want and your data security is not compromised?
Well, virtual data rooms allow you to give access to your stakeholders or investors as per their interest in the company. They can view, edit, modify documents and leave comments too. Moreover, they can communicate with each other easily through data room software. The best thing is, they can access the data room from anywhere at any time just by logging in from their devices.
Besides, if you want to provide information to potential investors, you can use a virtual data room for that purpose too. Want to get your records reviewed by external auditors safely? Data room is the solution you need.
4. More accountability
Accountability is what makes a business more transparent and successful. Investors and stakeholders only trust transparent and reliable businesses. Virtual data rooms give you a better chance of keeping everyone accountable.
For instance, you can keep track of who (and when) accessed, viewed, or modified a file. You can keep an eye on all the formal communication between your employees. The sense of accountability makes people more conscious and honest, too.
The takeaway
If you aren’t already using a virtual data room, it is time to start using one. Why? Because you need a better and highly reliable data storage option. But make sure you choose from the best data rooms available, specifically those who comply with international data security standards.
