As the clock ticks closer to a U.S. ban on TikTok, small businesses are bracing for the loss of an app that has, in many cases, proven vital for their success.
Millions of small businesses use the short-video social media app to help them grow their business in a multitude of ways. From helping to grow a customer base and selling goods directly from the app to advertising and marketing, TikTok has become a lifeline for small and medium-size businesses, offering a level playing field for brands to connect with targeted audiences.
“This app saved our business,” posted one entrepreneur on TikTok. Last June, her crafting business was on the brink. But after launching her TikTok shop, the in-app shopping feature turned things around, driving sales far beyond what her website or other social platforms could achieve. “There is no other social like this one,” she said.
The U.S. government has cited national security concerns as the main reason behind its potential ban of TikTok. The Justice Department has ordered ByteDance, the China-based parent company of the app, to sell TikTok by January 19 or face a complete ban in the U.S.
If the ban goes into effect, TikTok estimates that small businesses on the platform would lose more than $1 billion in revenue in just one month.
TikTok’s short-video format, paired with its algorithm that prioritizes engaging content, has enabled small, local businesses to go viral and tap into global audiences. Entrepreneurs leverage the platform to showcase their products, offer behind-the-scenes glimpses, and build personal connections with customers, making it an invaluable tool for business growth. “69% of these businesses say that using TikTok has led to increased sales for their businesses in the last year, and 39% say that access to TikTok is critical to their business’s existence,” said Blake Chandlee, president of global business solutions for TikTok, in a court filing last month.
If a ban is indeed enacted, small businesses will need to shift to other platforms to connect with their customers. Instagram Reels, Snapchat, and YouTube Shorts are potential alternatives. But for many businesses, no other app currently offers the same blend of reach, functionality, and audience engagement that TikTok does.
Lizz Smoak, brand strategist and a SCORE mentor, urges small businesses to diversify their presence across different platforms if they haven’t already done so, as well as build email lists to keep in direct contact with customers, no matter the platform shifts. Teaming up with multi-platform creators and micro-influencers can also help boost visibility, while sharing user-generated content (UGC) from influencers and customers keeps the buzz alive and engagement high.
“The strongest marketing strategies are like roots of a tree,” says Smoak. “The deeper and wider they grow, the more resilient you’ll be when the winds of social change blow. Building a community both online and offline isn’t just smart, it’s essential for long-term growth.”
Related Topics: