Close deals from home like a pro with VDRs
The Covid-19 world has shown us that the need to work from home is not only a hypothetical possibility in the distant future, but rather a tangible and sustainable reality. But even if employees have adjusted to remote work, there are still some aspects of business that are trickier to transition.
Business deals traditionally occurred face to face, but in recent years modern technologies have moved the deal closing process to a virtual setting. The introduction of virtual data rooms has enabled businesses to successfully continue to close deals, while also making the process straightforward and secure.
What is a virtual data room?
A virtual data room is a secure cloud space for saving, sharing, and editing files.
What role does a virtual data room play?
Virtual data rooms have been designed as a replacement for the physical data room. Physical storage required a lot of travel, space, and cost. Not to mention the security of sensitive files is at risk. With many companies branching out to international office locations, relying on a physical data room has become costly and impractical.
However, using free online tools also does not solve the problem. Sending documents by email, keeping data in low-secured online clouds, and sending messages on social media could lead to data breaches.
In addition, data breaches cause financial and reputational losses.
Tips on how to successfully complete home deals with VDR
Here’s how to choose the most suitable virtual data room.
- Pay attention to characteristics such as:
- Business type
- Security features
- Testimonials and overviews
- Make a plan. Briefly describe every step you or your team need to take to close the deal. The fewer unexpected things that happen during the closing the better.
- Cut search time by using the virtual data room’s organization system. Create groups of folders and subfolders to keep all files logically structured.
- Get acquainted with all the features a virtual data room provides. Be sure to take a closer look at the virtual room’s functions and options before starting work. Go through the software interface and pay attention to useful features you can implement into your own user experience.
- Take care of both technical and non-technical aspects of deals accomplished from home:
- Set the meeting time that suits both sides
- Test the camera and audio before making a call
- Get rid of background noises and distractions
- Check the Wi-Fi connection
- Ensure devices needed are charged
- Use proper lighting in the room
- Upload to the virtual data room and organize files that are needed for the deal
- After the end of the meeting duplicate the summary of the meeting into a brief document and share it with other members
- Last but not least, avoid these cybersecurity mistakes:
- Using email to send sensitive data
- Using only one password for multiple accounts
- Opening spam-like emails
- Letting the team members work with corporate data from their own devices
- Using public Wi-Fi to send corporate documents
Virtual data room use checklist
- Make sure your partners have complete instructions regarding how to use a virtual data room.
- Prepare all the needed documents before communicating with partners and closing a deal.
- Be prepared to upload and download any files needed during the deal.
- Communicate with your clients, partners, or a team by using virtual data room tasks.
- Track the view history for each document if needed.
- Customize permissions according to the deal’s members’ roles.
- For government agreements, double check if virtual data rooms are an approved platform for closing.
- Organize documents in the virtual data room.
Innovations bring new opportunities to business. In the case of virtual data rooms, it means:
- Hours and hours of saved time
- Saved money
- A brand-new level of security for your corporate information
- Easier use of documents
- A professional deal-closing process
- Minimized risks during the deal making process
If a business experiences a data breach during a business deal, the impact can be damaging and costly. That’s why cybersecurity should be a primary focus. Virtual data rooms can help by ensuring the prevention of a security problem before it occurs, giving businesses a secure place to safely and successfully close deals.