Where data room software streamlines data management systems in corporations and mega enterprises, it simplifies a lot of things for entrepreneurs, small agencies, and startups.
Many still believe that virtual data rooms are only effective for large-scale businesses, which isn’t true. Today’s discussion is about the benefits of a virtual data room for small agencies, startups, and entrepreneurs.
Let’s start with the basic introduction of virtual data room software and then move on to its benefits.
What is a Virtual Data Room?
A virtual or electronic data room is multi-purpose cloud software that businesses, professionals, and entrepreneurs can use as:
- Online data repository for storing their business data at a centralized platform. Data room users can upload data in different formats and share it with other users.
- Virtual working space where team members or employees can safely communicate, exchange documents, carry out audio and video meetings, participate in group discussions, conduct Q&A sessions, cast votes, create polls, and whatnot.
- An online deal room where businesses can directly deal with current or potential clients and execute business transactions or sign agreements.
Who can Use VDR Software?
From the introduction, it is obvious that a virtual data room can be used by any type of business or professionals who have data storage needs and deals with other businesses or clients in any capacity.
Here are some common use cases of online data room software:
- Education sector
- Pharmaceutical companies
- Healthcare organizations
- Mergers & Acquisitions
- Initial public offerings (IPOs)
- SMBs (small and medium businesses)
- IT firms
- Government agencies
- Managerial level personnel
- Remote workers
- Project teams
- Investment bankers
Benefits of Virtual Data Rooms for Small Agencies and Entrepreneurs
Safe Data Storage
Safe data storage facilities are the primary needs of businesses of any type or size. The importance of data security increases if you run a data-driven company such as a marketing firm or consultancy services. Many businesses still stick to paper documentation that is more prone to data mismanagement and theft. Besides, on-site databases or paper documents are always vulnerable to natural disasters like fire, floods, storms, etc.
A new business cannot afford to lose important business documents, including business registration certificates, work policies, marketing and business strategies, legal documents, and other vital documents.
Virtual data rooms can take this burden off of your shoulders. You can upload any type of document in any format, including images, audio, videos, documents, etc. Many data rooms support multiple file formats, making it easier to upload files as they are.
The scarcity of funds is always a problem for entrepreneurs and small agencies. Therefore, it is important to use financial resources efficiently. Hiring professional developers to create a dedicated data management system may not be an option for many small businesses.
Again, online data room software can be the best possible solution in such circumstances. A business just has to buy a subscription plan according to its needs, set up the data room, and start uploading business data in it.
The best part? Virtual data room vendors usually offer flexible pricing plans that can easily match your budget. For example, some VDR software vendors offer $5/user/month, which is literally a negligible expense. Moreover, you can upgrade your package or unsubscribe whenever you want.
Pro tip: Making a virtual data room comparison can help you get the best possible solution because many data room vendors offer great features at very affordable prices.
For entrepreneurs, idea generation is the first step to launching a new business. The second step is to convince investors to invest in your idea, which is the hard part. Another issue entrepreneurs face at this stage is how to protect their business plan if an investor doesn’t agree to it.
Virtual data rooms can be handy in such cases. Here is how:
- If you want to present your business idea to multiple investors, you can add them to your virtual data room and communicate directly.
- A virtual data room allows you to set access restrictions on any document. That is, you have the right to decide who can or cannot access your documents. You can restrict investors from downloading or printing documents. In fact, with modern VDR software, you can prevent any user from taking photos or screenshots of your documents.
- Apart from that, you can protect your business plan or ideas by asking investors to sign NDAs. Virtual data rooms have built-in customizable templates of NDAs, which can be signed using the electronic signature feature in VDRs.
Online data rooms are remotely accessible, which means you can access your data from anywhere in the world at any time. Remote accessibility is convenient for business owners who travel more than usual.
What’s more, virtual data rooms are also accessible from your mobiles with the help of dedicated mobile or tablet apps. The best part? You can access data in your VDR even without an internet connection.
Virtual data rooms are one of the best options for entrepreneurs, startups, and small agencies to safely store their business data and help the workforce coordinate in a safe environment. Virtual data rooms are easy to use even if your employees are not tech-savvy. Most importantly, they are budget-friendly and help you reduce paper and printing costs.