Big and small businesses are familiar with the importance of virtual data rooms and may or may not have used them during their daily work life. A virtual data room is essentially an online repository where one can store and share important documents. It can be considered a safe room for sensitive company information and is typically used for mergers or legal purposes where the other party requires access to confidential company information.
While using a virtual data room seems easy, choosing an appropriate data room for your company’s needs can be tricky. Click Here to Learn More about the available data rooms in the market and given below are four steps to follow while choosing a virtual data room for your company:
Step 1: Identifying your company’s needs
The first step to choosing a virtual data room for your company consists of identifying the needs of your workplace: Why and how will the data room be used? How tech-savvy are your employees? What are your storage needs? How sensitive is the data you would be sharing?
The above questions will help you define the characteristics you would be looking for in your virtual data room. For instance, if your employees aren’t tech-savvy, you want an intuitive data room rather than a static one. On the other hand, if you need a data room for collaboration rather than simply storage, you’d be looking into those with more advanced project management features.
Step 2: Shortlist providers according to your budget
Virtual data room providers can differ in terms of their pricing, and once you have identified your needs, you should shortlist providers according to your budget. The costs associated with a virtual data room may vary depending on the length of your use, the number of users, the amount of storage required, and the advanced features you choose.
Often basic plans for virtual data rooms feature a limited number of users, and you may have to pay extra for each additional user you add to your room. Basic plans also feature a standard storage space of 10 GB available for free and may charge extra for more space. However, the most common pricing for virtual data rooms is setting a flat rate with an unlimited number of users and charging extra for storage needs.
Step 3: Compare different services and read reviews.
Once you have a budget in mind, shortlisting available providers becomes easy, and the next step is to compare them. Compare shortlisted providers based on security features they provide, pricing plans, number of users allowed, flat-rate fees, and how these platforms can be used. Particular providers are notable for mergers and acquisitions, whereas others are reputed for IPOs.
Before making any online purchase, we read reviews from other customers, and shopping for a virtual data room should be no different. The two most obvious places to look for reviews are the company’s website and Google. You may also look into reviewer websites and compare all the different ratings to decide. If the virtual data room’s website lists a specific company as a client, get in touch with the representatives at that company to gain insight.
Step 4: Speak to support and ask for a free trial.
The final step in choosing your virtual data room should be speaking to their customer support and asking for a free trial. While trying out the virtual data room, be sure to ask yourself the following questions: How friendly is the interface of this data room? How intuitive is this data room? Are other competitors in the industry using this data room? What free resources or templates would be available for your company?
The above questions would help you arrive at a solid decision regarding the virtual data room your company will be selecting. While testing out the virtual data room, be sure to give your team a hand at testing, as they would ultimately be using it much more than you. Make a decision only after taking everyone’s opinion into account.
While choosing a virtual data room for your company may feel like a daunting decision, you must do your research to ensure you do not make a mistake. Virtual data rooms are stacked with confidential company information, and you wouldn’t want to put your company’s essential data into the wrong hands. On the other hand, a trusted virtual data room is imperative to gaining investor confidence, establishing trust amongst customers, expanding your business, and sustaining collaboration.