A ban on TikTok could have devastating consequences for millions of small businesses that today rely on the platform to fuel their growth. Although the social network launched in 2016, it has already become a key tool for entrepreneurs, allowing them to connect with new customers through short videos.
The Power of TikTok for Small Businesses
Desiree Hill, owner of Crown’s Corner Mechanic in Conyers, Georgia, is a clear example of how TikTok has changed the way small businesses reach their audience.
By sharing videos of her work on the platform, Hill significantly increased her visibility and, in just 18 months, managed to open an 836 m² physical shop with five employees. “Every day, at least two or three new customers find me through TikTok,” he says.
The Threat of Significant Revenue Loss
TikTok has helped small businesses in a variety of industries expand their reach, but a potential ban could cost them more than $1 billion per month in revenue. This situation is complicated by decisions by the U.S. Department of Justice, which has ordered ByteDance to sell TikTok under threat of its ban beginning in January.
Small businesses would have to look for alternatives on platforms such as Instagram Reels, YouTube Shorts or Snapchat. However, while profiles already exist on these networks, attracting the youthful audience that has made TikTok their network of choice could prove much more complicated.
Adapting to New Platforms and Strategies
Some entrepreneurs are already evaluating other options, such as Crystal Lister, owner of Mommy and Me: The Listers in Cypress, Texas. Lister uploads videos to YouTube and posts previews on Instagram Reels, but acknowledges that TikTok is much more effective for promoting her business. “If TikTok gets banned, we will lose one of the main advantages it offers us,” he says.
To counteract this situation, many small business owners are starting to build databases with their customers’ contact information. In this way, they will be able to communicate directly with promotions and other marketing messages. However, some, like Hill, fear that no platform will be able to replicate TikTok’s reach. “Losing TikTok would mean losing a big part of my business,” Hill concludes.
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