A data room is a secure online repository of business documents and files. They are most commonly used to conduct due diligence on transactions in the near future, but due to the rise of remote working and technological development, they are being utilized in increasing numbers throughout the entire business cycle. From fundraising and divestitures to internal file sharing and storage.

It is crucial to spend some time during the planning phase in order to determine how you intend to use the data room and what features are most beneficial to your business. This will help you avoid unforeseen costs or wasted effort and ensure the right level of functionality is in place for your specific needs.

Selecting the right data room provider can also save you time and money. In contrast to physical rooms, virtual data rooms require a lower operating cost since you don’t need to hire a secure location and pay security companies to monitor the room at all hours. Furthermore, if your business has many users from a variety of locations and time zones it’s important to choose a vendor that provides 24/7 support so your team members can receive the assistance they need whenever they need it.

Another key feature to look for is the ability to easily access reports describing the user’s activity, including who viewed which documents, when they virtual data room accessed them, and whether they downloaded or printed them. These reporting tools are useful from a managerial and security standpoint since they provide a comprehensive view of user activity that can be used to help inform the future plan for data room implementation.