TikTok is “back” after a 14-hour shutdown. What is the way forward for SMBs?
TikTok Ban for Small Business: What You Need to Know
January 19 was the deadline for ByteDance, TikTok’s Beijing-based parent company, to sell the app to a US company or face a nationwide ban, as ordered by the US Justice Department. The Supreme Court upheld the ban, and US TikTok went dark on January 18. However, through efforts from President Trump, TikTok restored its services after 14 hours.
With over 170 million users in the US alone, TikTok is a behemoth—both as a social platform and a hub for commerce, where users can seamlessly discover, purchase, and share. While the app has been restored, its future is still uncertain. What does this mean for small to medium-sized businesses (SMBs) riding the wave of TikTok’s success?
US TikTok Ban Key Takeaways for SMBs:
- Following recent developments (outlined below), businesses should continue to monitor for updates on access to TikTok in the US.
- Adapting to alternative platforms and diversifying strategies will be crucial for SMBs to thrive, whether TikTok stays or not.
- Learn from your TikTok wins—authenticity is still the way forward.
Where Things Stand
As of this writing, access to TikTok has been restored for US users following a 14-hour shutdown.
Here is a summary of the timeline:
- TikTok has long been the subject of government scrutiny due to data security concerns. Then-President Trump attempted to force a sale in 2020 and President Biden pushed for regulations in 2023.
- In March 2024, the House of Representatives passed the TikTok bill, forcing ByteDance to divest its stakes or face a nationwide ban, which Biden signed shortly after in April.
- After legal battles between the US federal government and TikTok/ByteDance, the Supreme Court ruled to uphold federal law, leaving TikTok open to a ban. The ban took effect hours before January 19.
- In a January 19 Truth Social post, President-elect Trump announced he would issue an executive order on Monday, January 20, to “extend the period of time before the law’s prohibition takes effect.”
- TikTok was back online for many US-based users by the afternoon of January 19.
We’re keeping an eye on the situation as it unfolds, but for now, let’s take a closer look at the US TikTok ban from a small business perspective.
How Will the TikTok Ban Impact Small Businesses?
@authorksandersdiggs My small business and the ban. #smallbusiness #tiktokban #diggspublishing #bodysafety ♬ original sound – Author K Sanders Diggs
A small business owner talks about how TikTok has helped their business and expresses dismay over the impending ban.
Ahead of January 19, small businesses were already bracing for the potential ban taking a bite out of their revenue. According to Oxford Economics research, over 7 million businesses rely on TikTok, and 45% of SMBs consider the platform critical to their business’s existence.
TikTok’s intuitive algorithm and potential virality are the platform’s key differentiators. SMBs benefit from TikTok both directly, through marketing efforts, or indirectly, through exposure. The same report highlights how TikTok helps businesses reach new audiences—73% reported at least moderate improvement.
Then, there are the stores—over 31,000—selling directly on TikTok Shop and catering to approximately 37.8 million US shoppers, per Statista data.
On a Square Seller Community forum, one user commented that a ban would be “brutal” for their business. According to Dina, co-owner of Amityville Apothecary, their shop had 260,000 followers on TikTok and they sold between $40,000 and $60,000 monthly on TikTok Shop.
Small business owner Desiree Hill told AP News that TikTok videos of her work as a mobile mechanic opened her business up to new audiences. Eventually, this popularity helped her establish a brick-and-mortar shop with five employees. Hill says she is worried that other platforms don’t have the same reach as TikTok and that she would “lose a large part of her business” or the “ability to grow anymore.”
Read more about TikTok Shop:
What SMBs Should Do
What’s next for small businesses that are dependent on TikTok in one form or another? TikTok may be back, but it’s too early to be complacent. Here are some tips to help you navigate the situation.
Reevaluate Your TikTok Marketing Strategy
TikTok is back (as of this writing) but it’s not the same—so neither should be your TikTok strategy. There are yet to be clear steps following TikTok’s restoration. Carefully evaluate how your current followers are responding to the ban before posting new content—monitor their tones and reactions.
Focus on engagement for now, not content. Right now, it’s all about re-establishing connections with your community rather than aggressively making new content. Check on your followers (and partners if you have them) and engage with their posts—show them you’re still there too and still care about them.
Additionally, let your followers know where else to reach your business—your other social media platforms, online store/website, your Google Business Profile, etc.
Watch for Updates
With President-elect Trump announcing that TikTok is back at his victory rally ahead of his three-day inauguration, TikTok’s future in the US is unfolding in real time. Currently, Trump is working on a deal to keep TikTok available in the US. So far, TikTok will likely have two paths: a new law will be passed reversing the old ban or TikTok will be bought by a new owner.
Learn from X
TikTok isn’t the only social media platform that’s undergone major changes in recent years. In 2022, X also saw significant platform updates following Elon Musk’s takeover. It’s unlikely that TikTok will experience the same “X-odus” (people mass-leaving X) but it will likely have some platform or content policy changes.
Diversify Your Social Strategies
TikTok’s potential for low-cost, viral marketing is particularly useful for small businesses. Within the digital economy, a TikTok ban isn’t necessarily a dead end for brands—alternative platforms, such as Meta (Facebook and Instagram), YouTube, X, and Pinterest, each feature their own strengths, so be prepared to diversify your approach as you build re-engagement strategies.
While TikTok has been restored for now, it’s still a good idea to diversify your social media platforms. We advise sticking with the two or three social platforms that work best for your business, but if TikTok is your biggest platform, consider strengthening your strategy on other similar platforms, like Instagram Reels. As always, track and improve your strategies as you go.
And although their algorithms might not target audiences the same way as TikTok, brands can capitalize on opportunities as these platforms develop them. Meta, for example, continues to invest in AI for more personalization. Instagram is a good alternative for connecting with users who respond best to video-based content. Businesses can even leverage forums like Reddit to engage their audience and target niche communities.
With users and creators making the shift to these alternative platforms, a surplus of content is likely. New platforms, such as RedNote, have also already started cropping up.
Work With Influencers
Influencer marketing remains a viable strategy for brands. As you explore other platforms, tapping into influencers can boost your reach. Meta, for example, is teeming with a variety of influencers with the ability to target niche communities and demographics.
Work with an influencer that best aligns with your goals and launch campaigns—whether a sponsored post on X or a giveaway with a micro-influencer on Instagram.
Related:
Double Down on Email Marketing
Email marketing is a tried-and-true strategy, especially for businesses with limited resources. Businesses can use both email and SMS to mitigate traffic losses from TikTok and stay connected with customers.
With the uncertainty of TikTok and TikTok Shop, nurturing and growing your email subscriber list can be a reliable tool to keep converting customers.
Read more:
Consider AI Solutions
Artificial intelligence tools let businesses tailor customers’ shopping experiences through personalization. For example, an AI chatbot could make it easy for users to identify local businesses or recommend products based on recent purchases. Implementing an AI solution for personalization may help your business become less reliant on TikTok’s algorithms for recommendations.
Learn more:
Keep It Organic & Authentic
As you reevaluate your TikTok strategy and diversify through other platforms, it’s important to take appropriate time to understand your audience on various platforms. Prioritize creating content that your audience will resonate and engage with, and work toward consistency. You can eventually invest in more targeted advertising on platforms like Meta to ensure you’re maximizing your budget.
Finally, people’s authenticity is the main reason TikTok thrives (aside from its signature algorithm). Already, people are posting TikToks of their personal experiences throughout its hours-long ban, so authenticity is still the way forward.
“The potential TikTok ban is a powerful reminder to never rely on a single platform for all your marketing or sales needs. As a small business, take this opportunity to diversify—grow your email list, utilize SMS marketing, invest in SEO, and educate yourself on other tools to expand your reach. Re-engage on Instagram, explore Pinterest, and build buzz for your brand across multiple networks to stay resilient and adaptable.”
—Kathleen Rock, Social Media Specialist
What to Expect in 2025: US TikTok Ban Ripple Effects
In 2023, small businesses’ use of TikTok contributed $24 billion in gross domestic product (GDP) and supported 224,000 jobs, according to Oxford Economics. TikTok’s net advertising revenue in 2024 was projected to reach $11 billion, per Statista data. From an economic standpoint, the stakes are high.
The effects extend to businesses in other countries that stand to lose sales coming from the US. The BBC reports that some firms have deemed the ban “potentially devastating” for UK businesses—about 1.5 million operating on TikTok. Similarly, imported products, such as cosmetics from Korea and China, will have to find their way to American buyers through different means.
While some worry that the ban would set a precedent, several countries have already implemented bans. Most notably, India banned TikTok in 2020, forcing 200 million users into alternatives.
Frequently Asked Questions (FAQs)
These are some questions we’ve recently encountered about the US TikTok ban.
January 19, 2025, is the deadline for ByteDance, TikTok’s parent company, to sell the app to a US company or face a nationwide ban. As of this writing, the ban was upheld, but TikTok restored access to US users after 14 hours.
With the fate of TikTok in the US uncertain, small businesses should leverage other platforms for their marketing efforts.
Brands should diversify their strategies—market through other social media platforms, nurture their email subscriber lists, and consider AI for personalization. Overall, brands should continue to engage customers with compelling content that resonates with them.
Bottom Line
Users and brands across the US still await the final word on TikTok’s future in the US. With a 170-million-strong user base, TikTok is a powerhouse businesses can leverage for authentic engagement and marketing.
For businesses that have built their followings on the app, the ban this is both a challenge and an opportunity to diversify their strategies and authentically connect with their audiences. Whether TikTok will continue to be available in the US or not, Post-TikTok, businesses will need to adapt quickly to thrive.
