Much is made about the importance of persistence in business – and that is perfectly true. This does not mean, however, that you have to fly in the face of reality if the market moves away from you.
A recent example has been the so-called “Lads” magazine market. In the 1990’s these magazines boomed, appealing to young men.
The original title in this genre: “Loaded” has closed after four different owners have tried to revive its fortunes after the past three years. It finally bowed to the inevitable as its circulation had fallen to 30,000 from a peak of 650,000 in the year 2000.
This follows in the wake of the closure in 2014 of “Nuts” and leaves the title “Zoo” in a unique position of being one of the few weekly titles in this market with a rising circulation. This is presumably because it is picking up customers from its former rivals but this does not guarantee that this trend will continue.
Nevertheless, being the “last man standing” in any market means that they must be doing something better than the others.
Whether or not to give up on a market or a strategy is a hard call to make. If you give up too early you can lose out on a lot of opportunity and profit. On the other hand, persisting beyond the point of reason risks throwing good money after bad.
This is one of the hardest judgements for a management team to make as the owners of now defunct “Lads” magazine well know.
Make sure that your business takes an objective look at all initiatives that you undertake and do not allow pride or embarrassment lure you into making wrong decisions.