Selecting the appropriate data storage for your business is crucial to ensure smooth operation and protection of your information. You certainly don’t want it to be accessed by unauthorised parties and disclosed without your consent, which affects not only you as a business owner but also your employees and clients.
Instead of using basic software or practices that provide little value in terms of control and ease, prioritise your document storage. This article discusses several reasons why efficient data storage is essential for successfully running a business and how to find the right solution for your company.
Not Enough Security
Generic document storage services, such as Google Drive or Dropbox, are affordable platforms for sharing basic documents but don’t provide the highest level of security for more complex data sharing. These services may be suitable for sharing holiday photos or collaborating on school projects, but they don’t offer the same level of safety regarding data transmission online and user access to the uploaded data.
Virtual data rooms (VDRs) are a superior option for ensuring the security of confidential information during document sharing. VDRs offer features specifically designed to keep unwanted third parties out while still enabling invited users to efficiently collaborate and share from anywhere, at any time. Without adequate security, your documents could fall into the wrong hands through a data breach, jeopardising the safety of everyone involved in the information-sharing process.
Lack of Control
Without using the best storage for your documents, you may not have the necessary level of control for facilitating specific deals and transactions. Situations involving large volumes of documents to be stored and shared, such as mergers and acquisitions (M&A), require a platform that allows an administrator to control access to information, ensuring nothing is downloaded or disclosed without their knowledge.
Data rooms offer this control through features such as disabling print and download functions, and dynamic watermarks, making it difficult for users with malicious intentions to remove sensitive documents from the platform and share them elsewhere. Without this level of control, your company’s financial or other confidential data could be exposed online, compromising the security of your business and its partners.
It’s Not Easy To Use
Although generic document-sharing tools are easy to sign up for, they might not provide the most organised and user-friendly interface. In contrast, virtual data rooms are designed specifically to make navigation during large transactions involving numerous documents more efficient, enabling deals to close faster. Users can enter a data room and quickly locate the information they need while conducting due diligence or researching your business.
Basic interfaces not designed to handle complex transactions with features like folder structure organisation can cost a business more money due to the additional time spent sorting through disorganised documents during major projects. Make it easier for yourself and those involved in your deals to find what they need when they need it, avoiding wasted time on a cluttered interface.
Not Establishing Accountability
A primary reason business owners use document storage platforms during deals like M&A is to establish accountability with potential buyers or investors. Without software enabling users to easily review documents and ensure they understand all relevant information before committing to a merger or acquisition, you and your business may not be perceived as transparent. Disclosing important information such as outstanding debts or litigation to interested buyers is essential to demonstrate your reliability, which can increase the likelihood of a successful sale.
