A TikTok ban could go into effect in just days. What will its impact be on small businesses?
TikTok Ban for Small Business: What You Need to Know
January 19 is set to be the deciding date for the years-long conflict around TikTok’s future in the US. ByteDance, TikTok’s Beijing-based parent company, has until Sunday to sell the app to a US company, as ordered by the US Justice Department, or face a ban.
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. So, what does a potential ban mean for small to medium-sized businesses (SMBs) riding the wave of TikTok’s success?
US TikTok Ban Key Takeaways for SMBs:
- Ahead of the ban, businesses should leverage their existing TikTok presence.
- Adapting to alternative platforms and diversifying strategies will be crucial for SMBs to thrive post-TikTok ban.
- Learn from TikTok wins—authentic and compelling content keeps audiences engaged.
Where Things Stand
As of this writing, the future of accessing TikTok could be decided any day now by the Supreme Court, while TikTok is preparing to shut off its app for US users on Sunday.
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’s ruling is likely to uphold the sale-or-ban law.
According to Reuters, once TikTok shuts off, the ban would apply to new downloads on Apple and Google app stores and existing users could continue to use the app for some time.
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.
Small businesses are 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? Whether the Supreme Court moves to block the ban or not, your business must adapt.
Don’t Neglect Your Current TikTok Presence
While you can still access TikTok, harness your reach and the data available to you. It would be worthwhile to create posts letting your followers and customers know where to reach your business—your other social media platforms, online store/website, your Google Business Profile, etc.
Make posts or go live and share how your business is transitioning through the ban, letting customers know which products they won’t be able to access. This would also keep engagement steady and help nudge your current followers to stay connected through other platforms. Additionally, download your data to keep a record of your performance.
Leverage Existing Alternatives
TikTok’s potential for low-cost, viral marketing is particularly useful for small businesses. However, 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.
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.
Users and creators will logically shift to these alternative platforms, so prepare for a surplus of content at the onset. New platforms, such as RedNote, are also expected to crop up in the wake of the ban.
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:
Keep It Organic
As you transition from TikTok marketing, 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.
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.
“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
Learn more:
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, TikTok plans to shut off the app on the said date.
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
As users and brands alike await the final word on the looming TikTok ban, one thing is clear—TikTok’s 170-million-strong US base will need to go somewhere else. For businesses that have built their followings on the app, this is both a challenge and an opportunity to diversify their strategies and authentically connect with their audiences. Post-TikTok, businesses will need to adapt quickly to thrive.
