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 Research (the fourth R)
Sam Richter, President, James J Hill Library

Smaller, innovative, high growth companies are the heart of the American economy. According to the Small Business Administration, 86% of all U.S. companies have less than 100 employees, and small businesses represent 75% of all new jobs and 50% of all new revenues.

Yet according to a recent Dun and Bradstreet study, 90% of smaller businesses that fail do so because management is so focused on their firm’s internal behaviors, that they don’t take the time to locate external information critical to their success and maybe more important, critical to their customers’ success. In this age where almost any product and service can quickly become a commodity, the ability to find information and then use that information to provide value is imperative in creating competitive differentiation.

The traditional “business success” model taught today is mastery of the “Three Rs” – reading, writing and arithmetic. The ability to communicate effectively combined with the mastery of business financials certainly is imperative if you expect to do well in business. If, however, you want to excel in business, a solid understanding of the “Fourth R” – Research is necessary.

The “Fourth R” doesn’t mean you have to have the skills of a librarian. Yet a basic understanding of how to quickly find information and then apply that information in a sales call, proposal and throughout a relationship with a customer can be the key in differentiating you and your firm from competitors.

The “Fourth R” can truly be the difference between winning and losing an account; between building a long-term relationship based on value versus one based on lowest price. In a 2002 Cahners Research study of 23,000 purchasers of business-to-business products and services, 76% reported they are most frustrated with sales people that don't understand their business. Put another way, three-fourths of purchasing decision makers expect their vendors to practice the “Fourth R.” Let’s look at some hypothetical examples of the “Fourth R” in action:

Example 1: You sell office supplies and you’re meeting the CEO of ACME. Instead of opening your product catalog, what if your meeting starts with: “That recent article about you coaching your kid’s soccer team was wonderful and I see ACME has experienced a 23% growth rate compared to the industry average of 7%. How do you balance a family life and run a successful company?”

Example 2: You and your large competitor are pitching the same business. Their document is filled with case studies on past successes. Your proposal is filled with industry statistics, customer demographics and an analysis on new markets.

Example 3: You just won a great piece of business. Instead of resting on your laurels, you immediately start to provide value. You send an email featuring a recent trade journal article directly related to your client. You find a business opportunity for your client, totally unrelated to your business. You locate an analyst report related to a new market your client mentioned they’re exploring.

In each example, you’ve used the “Fourth R” to differentiate your firm and provide exceptional customer value. So how do you practice the “Fourth R?” The good news is it can be easy and most often free. Following are some “Fourth R” tips you can start practicing today:

Have someone do the work for you.
Visit your local library. You’ll find subscription databases, trade journals, industry directories and more plus expert help.

Contact a trade association for research reports, industry statistics, etc.
Find an association at www.asaenet.org/find.

Email the Hill Library at info@jjhill.org and let a business information expert help you with your search.

Use the “Advanced Search” function.
Clicking on “Advanced Search” in any good search engine takes you to an easy-to-understand form where you can narrow or expand your search and save hours “surfing.”

Search local publications.
Local publications feature in-depth articles on companies, executives and local industries. Visit www.newslink.org and www.bizjournals.com.

Search the Invisible Web.
Popular search engines cover at best 20% of what’s on the Web. Search the “Invisible Web” through sites like www.invisibleweb.com and www.lii.org and choose their business category links.

A 2002 Delloite and Touche survey of 200 CEOs of high growth companies showed six key concern these CEOs had for maintaining growth:

• Strong marketing and sales strategy
• Hiring and retaining staff
• Raising capital
• Technological advances
• Corporate culture
• Cash flow

Three of the top six concerns are directly related to finding relevant, credible and objective information. Practicing the “Fourth R” provides these firms the information they need to craft strong marketing and sales plans; the detailed data for business plans; and the latest information on technology trends. By practicing the “Fourth R” these companies will provide value to key stakeholders. By practicing the “Fourth R” you too can use the magic ingredient for personal and business success.