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How to Start a Virtual Data Room – Sample Business Plan Template

Do you want to start a virtual data room company from scratch? Or you need a sample virtual data room business plan template? If YES, then i advice you read on. With increasing risk of data loss due to system errors, natural disasters, and hacks, businesses are now turning away from traditional data storage systems in favor of web-based, secure, third-party storage systems known as virtual data rooms.

Virtual data rooms allow businesses that handle huge volumes of information to store and access lots–thousands and thousands–of documents in the cloud. In modern day business transactions, huge amounts of information change hands between the customers and businesses.

These pieces of information need to be stored for future use. And considering that they are sensitive and complicated, there is a need to set up access control system to determine who is allowed to see what. Virtual data rooms provide allow users to set up such systems and provide detailed tracking services that reveal who accessed what, and at what time.

Virtual data rooms are not new. They have only replaced the physical “document rooms” that many law firms, financial companies, and other business used to employ during deals. Their emergence became necessary when virtually everything started migrating to the web.

Virtual data rooms service all types of businesses that need to share information with third parties. Big new users of virtual data rooms include pharmaceutical companies, healthcare establishments, and government agencies. The increase in number of bankruptcies, caused by the worsening economic conditions experienced in most parts of the world has increased the use of virtual data rooms by the parties involved in restructuring or unwinding corporate liabilities.

Virtual data rooms are expected to continue growing at a fast pace because more and more paper-intensive businesses and organizations are taking to the cloud, and consumers are getting to realize the multiple benefits of sharing data. In 2012, the virtual data room market was worth $628 million, and the market is likely to grow to a whopping $1.2 trillion by 2017, according to IBIS, a research firm based in California.

Now, do you have a solid background in programming? Are you looking to start your own business and are considering starting a virtual room? If YES, then I advice you read on to understand more about the business.

Starting a Virtual Data Room – Sample Business Plan Template

1. Getting started

Starting a virtual data room business involves about the same steps as with any other business. Start by learning more about the business. Read online resources to understand more about the business. Contact a seasoned expert in the business to learn all you need to know before taking plunge. And gather enough information to help you make a well-informed decision whether to start go into the business or not.

2.  write a comprehensive business plan.

Your next step is to write a comprehensive business plan. This will serve as a step-by-step guide as you look to get your business off the ground and as you run it effectively after its launch.

Your business plan will include vital information about your virtual data room business, such as your mission and objectives, target market, market analysis and competition, startup and operation costs, projected sales and profit figures for the first few years, marketing strategy, unique selling propositions, sources of funding, management team, and exit strategy.

3. Certain paperwork.

As with any other business, you need to complete certain paperwork when starting a virtual data room business. Register your business with the business registration office in your state. Visit the appropriate local agency to inquire about the licensing requirements for starting a virtual data room business, and obtain all the required licenses and permits.

4. Choosing a good location comes next

Your ideal situation is one with enough space for your equipment and facilities and abundance of utilities required for the smooth running of your business, such as electric power. However, if you are planning to power your virtual data room with solar power or some other alternative, the availability of electricity becomes no longer necessary. After acquiring a good location for your business, set up your offices and data storage infrastructure such as computers, servers, and so on.

5. To build a successful virtual data room business

You will need a team of IT experts to work with you in varying capacities. In fact, the success of your business hinges largely on the skill set and experience of members of your team as well as their level of dedication to their work. So, you need to watch out for these qualities when hiring professionals to work with you.

With all the above steps taken, you can start marketing business through both online and offline methods. Bear in mind that customer satisfaction is key to the success of any business, and a virtual data room is no exception.