US businesses lose billions of dollars when TikTok is banned

The upcoming TikTok ban could impact millions of small businesses in the US that have used the social media app to conduct business in recent years. It is estimated that small businesses in the US will lose more than $1 billion in a month.

Loss of $1 billion in revenue in one month

Desiree Hill, owner of Crown's Corner Mechanic in Conyers, Georgia, started her business as a cell phone repairman. Sharing videos of her work on TikTok helped her go viral and become popular enough to open a new shop and hire five employees 18 months ago.

Tiktok will be banned from operating in the US from January 19, 2025.

“Every day, a couple of customers come to me on TikTok, watch my cell phone repair videos, and want to become a customer,” said Desiree Hill.

Although TikTok has only been around since 2016, small business owners in the US are using the platform for a variety of things, from growing their customer base to advertising and marketing, as well as selling directly from their website.

According to TikTok's estimates, small businesses will lose more than $1 billion in revenue in just one month if the ban on this social network operating in the US takes effect.

The US Justice Department has ordered TikTok's parent company, ByteDance, a Chinese company, to sell the app or face a ban from operating in the US starting January 19, 2025, citing security concerns. The Supreme Court is expected to take up the matter in January 2025. President-elect Donald Trump, who takes office on January 20, recently asked the Supreme Court to postpone the ban.

If the ban does happen, small businesses will have to turn to other platforms to find their customers. Instagram Reels, SnapChat, and YouTube Shorts are alternatives. The good news is that brands may already be there. However, they may have a harder time reaching the teen audience that has long made TikTok their social media app of choice.

Switch to other platforms like YouTube, Instagram, and Facebook

Another alternative is to rebuild a customer database that will agree to provide a contact email or phone number. This allows the owner to reach out to customers directly with promotions and other marketing information.

President-elect Donald Trump recently asked the Supreme Court to postpone the TikTok ban.

Still, the owner of Crown's Corner Mechanic said she worries that other sites may not have the same reach as TikTok. She's on YouTube, Instagram and Facebook, but engagement isn't the same.

"I was worried because I wasn't prepared for this. TikTok is so important to my customer base and how I reach customers. Without TikTok, I would lose a large portion of my revenue, or the ability to grow my business," Desiree Hill said.

Crystal Lister is the owner of Mommy and Me: The Listers, a Cypress, Texas, business that offers interactive workshops on STEM education . The entrepreneur has been trying to turn to YouTube for videos and Instagram Reels for trailers to drive people to YouTube, but she says TikTok has been more successful.

"It would be a challenge if TikTok was banned, because we would lose most of the functionality we have built, such as the ability to create videos or spread information through social media. If TikTok were banned, we would have to use many other apps to complement what ByteDance's apps already do in one platform," said Crystal Lister.

(Source AP)

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