How Improper Data Storage Can Affect Your Business
Using the right type of data storage for your business is vital in ensuring that all processes run smoothly and that your information stays secure. The last thing you want is for it to be accessed by inappropriate third parties and disclosed without your consent—not only does this affect you as a business owner, but also affects the employees and clients that work with you.
Rather than settling for basic software or practices that don’t offer any value when it comes to control and ease, make your document storage a priority. This article will discuss a few reasons why efficient data storage is necessary for running a business successfully and how to find the right kind for your company.
Not Enough Security
Generic document storage services such as Google Drive or Dropbox are cheap platforms that allow you to share basic documents, however don’t offer the utmost security for more complex data sharing. You can opt for them when you need to show your friends and family pictures of your vacation or collaborate on a school project, but it doesn’t offer the same level of safety with regards to how the data is being transported online and the access other users have to it once it’s uploaded to the platform.
Virtual data rooms are the better option when it comes to ensuring the security of confidential information during document sharing. A VDR offers features designed specifically to keep unwanted third parties out while still making it efficient for invited users to collaborate and share at anytime, from anywhere. Without the right amount of security, your documents can end up in the wrong hands through a data breach, affecting the safety of anyone involved in the process of sharing this information.
Not Enough Control
When you aren’t using the best storage for your documents you won’t have the level of control necessary to facilitate certain deals and transactions. Those that involve large amounts of documents to be stored and shared, such as M&A, require a platform that allows an administrator to maintain control over who sees what and for how long, ensuring that nothing is downloaded or disclosed without their knowledge.
Data rooms offer this control through features such as disable print and download as well as dynamic watermarks, making it difficult for users with less-than-desirable intentions to take sensitive documents from the platform and share them elsewhere. Without this level of control, your company’s financial or other confidential data can be exposed online, affecting the security of your business and anyone you do business with.
It’s Not Easy To Use
While generic document sharing tools are easy to sign up for, they aren’t necessarily the most organized and easiest to use when it comes to their interface. The difference between them and virtual data rooms is that the layout of a VDR is designed specifically to make navigation during large transactions with a plethora of documents more efficient so that arduous deals can be closed faster. Users can enter a data room and know exactly where to go to get the information they need while performing due diligence or other research on your business.
Basic interfaces that aren’t meant to withstand complex transactions by offering features such as folder structure organization can cost a business more money in the additional time spent sifting through disorganized documents during big projects. Make it easier for yourself and for those involved in your deals to find what they need when they need it so that no more time is wasted on a cluttered interface.
Not Establishing Accountability
One of the main reasons business owners use document storage platforms during deals such as M&A is to establish accountability with potential buyers or investors. Without software that allows users to review documents easily and ensure they know all relevant information before committing to a merger or acquisition there is the potential that you and your business won’t be seen as forthcoming. Whether you have any outstanding debt or litigation, it is important to disclose it with an interested buyer as a way to illustrate your reliability, which can also make a successful sale more likely.