Small businesses gear up for the impact of a potential TikTok ban

Small businesses gear up for the impact of a potential TikTok ban
02-Jan-2025 09:48 PM
A possible TikTok ban poses a serious threat to millions of small businesses that depend on the app for marketing, customer engagement, and sales. Entrepreneurs like Desiree Hill, who expanded her mobile mechanic service into a successful shop with TikTok’s help, are concerned about losing its unique reach. As the U.S. government pressures TikTok’s parent company, ByteDance, to sell or face a ban, businesses are turning to alternatives like Instagram Reels and YouTube Shorts, but matching TikTok’s impact remains a challenge.
A looming TikTok ban could disrupt millions of small businesses that rely on the app to grow and reach customers. Desiree Hill, owner of Crown’s Corner Mechanic in Conyers, Georgia, started her business as a solo mobile mechanic. Posting videos of her work on TikTok helped her gain popularity, eventually enabling her to open a 9,000-square-foot brick-and-mortar shop with five employees 18 months ago. “Every day, I get at least two to three customers who saw me on TikTok, watched my videos, and decided to become customers,” Hill said. Since its debut in 2016, TikTok has become a vital tool for small business owners. They use the platform for everything from building a customer base and marketing to advertising and selling products directly. TikTok estimates that small businesses could collectively lose over $1 billion in revenue within a single month if the platform is banned. The U.S. Justice Department has ordered ByteDance, TikTok’s China-based parent company, to sell the app or face a nationwide ban by January 19, citing security concerns. The Supreme Court will review the case in January, and President-elect Donald Trump, who takes office on January 20, has requested a delay. If the ban goes into effect, small businesses will need to shift to alternative platforms like Instagram Reels, Snapchat, and YouTube Shorts. While many brands already have a presence on these platforms, reaching TikTok’s primary teen audience could prove challenging. Another strategy is building customer databases with email or phone contacts, allowing direct outreach for promotions and marketing. Despite these alternatives, Hill is concerned about losing TikTok’s unique reach. While her business has a presence on YouTube, Instagram, and Facebook, she finds them less effective. “I’m worried because there’s no preparation for this,” she said. “TikTok is critical to my customer base and growth. Losing it would mean losing a significant part of my business or my ability to expand.” Crystal Lister, owner of Mommy and Me: The Listers in Cypress, Texas, shares similar concerns. Her business, which offers STEM-focused workshops, is transitioning to YouTube for videos and Instagram Reels for teasers. However, she says TikTok is unmatched. “If TikTok is banned, it’ll be a challenge,” Lister said. “We’ll lose the all-in-one functionality it offers for video creation and spreading the word, forcing us to juggle multiple platforms to make up for it.”