A virtual dataroom can be a useful tool to share information with investors. But, it’s essential to prevent common mistakes that could compromise security. These mistakes can be caused by a lack in training for data rooms as well as incorrect indexing and sharing non-standard data with investors. By learning from these mistakes and avoiding them, you’ll be able to make the most of your data room’s virtual version.
Using a data room without specific training for data is among the most costly mistakes that companies make. All users need to receive data room training to ensure they know how to navigate and use the system in a way that is efficient. This will cut down on time spent looking for data and increase efficiency.
Another mistake that companies make is failing to establish an organized structure for their data room. This can create a chaotic and inefficient structure for organization and make it difficult for users to to locate the documents they are searching for. To avoid this, it’s important to establish a logical organization of folders that includes main categories, subfolders, and common names for documents. It’s also important to update the hierarchy frequently to ensure that documents are easily accessible and that permissions remain the same across the entire data room.
It’s also crucial to limit the amount of information you share with your data room. For instance, you shouldn’t include old financial statements or contracts since they could mislead investors. Also, including these documents can result in an excessive amount of storage space being used, which can be expensive.