Data storage and document management probably aren’t at the top of a executive team's list of priorities. Nonetheless, for a growing company in a fast-paced industry, they will eventually become quite important. Of course, it is never a good idea to wait until something becomes an emergency to address it. Instead, leaders should plan ahead and invest in a data solution that meets their immediate needs and will be able to evolve to meet future needs as well. Plus, there are a lot of benefits to using a cloud solution to save important data beyond mere storage capacity. Here are seven signs that you should invest in a virtual data room:
1. You Have A Lot of Documents
If your company is involved in a document-heavy industry from the get-go, it makes sense to establish an online repository at the outset. A virtual data room will enable you to store all of these documents in one central location, allowing for better organization and easier access.
2. You Have Intellectual Property
In general, a reputable data storage service will make the privacy of its clients’ data one of its top priorities. This is particularly important when it comes to storing a company’s intellectual property. A solid virtual data room generally offers various security strategies, such as multi-level authentication, encryption, watermarking, disabled printing, and access control, to ensure that stored IP will remain confidential.
3. You Deal With Regulatory Agencies
For companies that must comply with rules and regulations that a state or federal agency oversees, diligent documentation and record-keeping are an absolute must. A virtual data room can be extremely helpful for this type of document management, as it allows the creation of folders and subfolders, tagging, highlighting, and indexing, all of which makes keeping track of crucial documents a whole lot easier.
4. You Are Fundraising
When it comes time to raise funds, companies need to be prepared to undergo a due diligence investigation. Of course, this requires scrutiny of countless documents by a lot of different people, including investors, lawyers, accountants, and so forth. A virtual data room allows those seeking funds to upload and organize all of the pertinent information that the key players will need to review. And, with a service that offers audit trails, you can even see who viewed what to get a sense of who is really interested.
Related Content: SecureDocs Complementary Due Diligence Checklist
5. Your Team Works Remotely
One of the great things about utilizing cloud technology is that it allows company personnel to work from anywhere, anytime. More and more businesses are allowing people to work from home for all sorts of reasons. Regardless of where members of your team are located, a virtual data room is the perfect, centralized online collaboration tool.
6. You Have International Offices or Partners
Even if the majority of your employees report to the main office, it is highly likely that your company has or will have additional offices elsewhere or perhaps important partners located abroad, such as external consultants. In these situations, a virtual data room provides anyone overseas or in a different time zone with round-the-clock access to the data they need to get their job done.
7. You Want an Organized and Successful Business
Okay, so maybe the scenarios mentioned above don’t apply to your particular company at this point, and maybe they never will. This certainly doesn’t mean that a virtual data room isn’t a good idea for your business. Using a cloud-based service to store company documents will help your company stay organized, which is critical to ensuring smooth operations. And, the more organized your company is, the more time people can spend on more important items that will help to grow the business.