The impending ban on TikTok in the United States could affect the millions of small businesses that use the short-video social media app to help them grow their businesses.
Desiree Hill, owner of Crown's Corner Mechanic in Conyers, Georgia, started her business solo as a mobile mechanic. Sharing videos of her work on TikTok helped spread the word, and she became so popular that she was able to open a 9,000-square-foot brick-and-mortar store 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 wanted to become customers,” she said.
Although TikTok has only been around since 2016, small business owners are using the platform in a variety of ways, from expanding their customer base to advertising and marketing, as well as selling merchandise from the site directly.
According to TikTok's own estimates, small businesses on the social media would lose more than US$1 billion in revenue in a single month if the ban took effect.
The U.S. Department of Justice has ordered the app's parent company, China-based ByteDance, to sell TikTok or face a ban in the United States by Jan. 19, citing security concerns. The Supreme Court will consider the issue in January. President-elect Donald Trump, who will take office on January 20, has asked the Supreme Court for a delay.
If a ban occurs, small businesses will have to migrate to other platforms to find their customers. Instagram Reels, Snapchat and YouTube Shorts are other possibilities. The good news is that businesses are probably already there. However, it may be more difficult to reach teens who have made TikTok their social media app of choice.
Another option is to build a solid database of customers who choose to provide emails or phone numbers. This allows owners to contact customers directly with promotions and other marketing messages.
But Desiree Hill of Crown Corner Mechanic said she was concerned other sites wouldn't have TikTok's reach. She is present on YouTube, Instagram and Facebook, but it is not the same thing, she judges.
“I’m worried because there’s no preparation for this,” she said. It’s such a big part of my customer base and how I reach customers that if I lose TikTok, I’ll lose a large part of my business or I’ll lose my ability to expand further.”
Crystal Lister is the owner of Mommy and Me: The Listers in Cypress, Texas, which offers interactive workshops in STEM education, an interdisciplinary approach. She's working on turning to YouTube for videos and Instagram Reels for teasers to drive people to YouTube, but felt TikTok is easier.
“It will be a challenge if TikTok is banned because we kind of lose all the features that you want — the ability to create a video, the ability to get the message out through social media,” she explained. So we will have to use many other platforms to complement what TikTok has done in one.”
