When Karim Ullah opened his restaurant in March 2020, he did not expect to be forced to close 11 days later.
Karim Ullah, owner of restaurant Brohmon in Essex, joined TikTok three months ago
During the pandemic, Karim had to stay open for takeaways to stay afloat, and the restaurant has since successfully launched its own craft beer and gin.
Now he looks to TikTok to take his business to the masses after his daughter found success on the platform with her own musical ventures.
The current economic climate is tougher than ever for smaller businesses and like Karim, many entrepreneurs are looking for new channels to promote their products.
Given its popularity with younger audiences and more and more businesses moving to TikTok, could this be the answer for small businesses?
Can TikTok help my small business?
Platforms like Instagram, Facebook, and Twitter can be a great way to reach a wider audience and businesses large and small alike have benefited from them.
There are some runaway successes who have used social media to build their own businesses.
Joe Wicks, who rose to fame during the pandemic by teaching gym classes to the nation, has developed his own fitness app, while Grace Beverley, another fitness influencer, launched her own clothing line and recently secured an investment.
TikTok is the newest kid on the block. It now has 1 billion active users and launched in the UK in 2018.
Unlike other social media apps that prioritize connections, TikTok’s ‘For You Page’ presents users with videos related to their interests through its unique algorithm.
It also now has its own shopping feature, where creators and companies can sell their products, from which TikTok receives a small commission.
To many it may not seem like the most obvious place to advertise your business, but for many entrepreneurs it has proven to be a risk worth taking.
Candice Mason, founder of Mother Cuppa, first found success on TikTok
A new report from Oxford Economics found that one in five companies founded less than five years ago spend more than half of their social media budget on TikTok.
Candice Mason joined TikTok just six months after launching her company Mother Cuppa Tea and found success almost immediately.
“I’ve been trying to build a following on different platforms,” she said. “I thought TikTok was a really nice and friendly place. There were ladies of the same age who joined at the same time and we built our own little community there. Very early on, the videos did incredibly well.’
The Oxford Economics report found that 47 percent of TikTok users have purchased a product or service on the platform and 45 percent have visited a restaurant or tourist attraction as a result of seeing it on TikTok.
Karim, who runs restaurant Brohmon in Essex, only started posting to TikTok three months ago and has had limited success so far, but remains confident it will become an important part of the business.
“I think we may be traveling a little early,” he said. “As we move further down the road, I expect TikTok to be very successful [for us].
“TikTok is known as something young people post on, but I’m surprised how many people my age have joined TikTok to see what’s happening. I think every company should be on TikTok.’
How does TikTok compare to other platforms?
One of TikTok’s defining features is its algorithm, which is based on interests rather than followers, so there’s no need to get thousands of followers to succeed.
Users view content based on the topics they’re interested in and other videos they’ve interacted with, which can be a great way for small businesses to reach new audiences.
One of the benefits is that TikTok prefers users to upload videos between 15 and 30 seconds, rather than 3+ minutes like on Facebook.
I think every business should be on TikTok
Karim Ullah, owner of restaurant Brohmon
Claire Gleave, founder of maternity brand Natal Active said: “Sometimes I’ve made videos where I played softly with my kids running around in the background and answered a question on video.”
A video platform may not work best for the product or service you are selling.
Ben Spray, founder of digital marketing agency We Are Marketable, said: ‘On Facebook, we see that you can do different types of ads – images, videos, carousel posts, text, so we think it wins a lot more there.
“There are other features like direct lead forms that allow Facebook and Instagram to extract details from your profile…I haven’t seen that on TikTok.”
Crucially, Spray found that small businesses typically get a higher return on ad spend on Facebook compared to TikTok, where product prices tend to be lower.
“You earn about three to five times as much ad spend on TikTok, while on Facebook it’s about £5-10 for every pound spent.”
For Candice, who had initial success, investing in TikTok helped little: “I spent £350 on marketing and all it did was get me a few 1000 views. I didn’t get any sales out of it.’
She was offered one-on-one coaching to help with marketing, but she said it was “more about trying to get sales and money through the platform and it just leaves a bit of a bad taste.”
Digital marketer Ben Spray thinks entrepreneurs who advertise to a younger audience should join TikTok
“I’m actually on a very constant number of views, very, very little interaction, a lot of effort for very little result.”
Most importantly, how successful TikTok can be for your business depends on the type of product you’re selling and who you’re trying to sell to.
Spray said, “I would personally recommend it [TikTok] for people who target a younger demographic, because that’s the bulk of the market there. And also from the clients we’ve worked with, a service or product that’s cheaper, because it seems to perform better than more expensive services, on the clients we’ve tested.”
TikTok’s store is flooded with discounted goods, from clothing to kitchenware, and Claire has found it difficult to sell her products as a result.
“Spending £55 on a pair of maternity leggings doesn’t necessarily make you an impulse buy,” she said. “You want to know the brand, read the reviews, and learn a little more about the product before you go.”
Slave to the algorithm?
TikTok’s algorithm can be very hit and miss and while you may have built up a loyal following, users may not always see your posts, unlike Instagram or Facebook.
Karim is as baffled as other makers: ‘The algorithm is crazy, I know why it does what it does. When my daughter started, she got 500 people to watch her videos. As she started posting more, she got thousands watching her. She doesn’t know [why] or.
“I think it’s a matter of just posting videos and building your brand and channel. I’d like to find a good reason why some things work, I think it’s a mystery.’
Claire Gleave, founder of Natal Active, has had mixed experiences with TikTok after it went viral
This lack of understanding means it can be difficult to keep up the momentum, and some creators have found themselves having to post more and more.
Candice said, “As time went on, I found myself having to post more than once a day to get the same amount of views and interaction.”
And while the TikTok algorithm seems to work for the billions of users who see relevant content, it can also attract unwanted attention.
“I had a few videos that went viral and attracted the wrong kind of people, which is a complete waste of my time,” Claire said. “I’m not interested in vanity stats on TikTok, I want to attract my ideal client. I don’t want a million followers if it’s all men interested in breastfeeding.
“My understanding of the way the algorithm works is that it throws your video out, say, 300 random people, and it will see who’s on it. Whoever is working on it, it will be shown to more people like that. If I get dodgy dudes to work with a breastfeeding video, it just shows that to more and more of those people who have those kinds of preferences.
“It doesn’t show it to breastfeeding moms. Those are the people I want to target.”
Candice had a similar experience: ‘My product is aimed at women over 30, it couldn’t be more clear. When I put my money behind it and looked at the stats, I got 14-year-old boys. That’s such a waste of my money. It just wasn’t right.’
Build brand awareness
What is clear is that TikTok is not for every small business. The algorithm can be confusing and if you want to interact directly with your loyal followers, this probably isn’t the platform for you.
Business owners who are not really savvy about social media may be struggling with how regularly to post on TikTok.
Candice said, “You need time to really put your energy into it [social media platforms] to gain momentum. I’m still working full time starting a business and trying to be present on all of these platforms. You end up feeling like you’re spreading yourself too thin and not really doing well on any of your platforms.”
What it could help with is building brand awareness. Claire discovered that she gets a lot of traffic to her website from the platform when she uses it regularly, and especially when her videos go viral.
“I notice that it’s mainly about brand awareness,” she said. “If the wrong people drop out and the right people trickle in, then we remarket through Instagram and Facebook ads, and the occasional TikTok ad when I run them.”
For Claire, TikTok may not be the huge success she might have expected, but after a few viral videos, she’s willing to give it a try.
Her top tip for entrepreneurs is: ‘Put your face in front of the camera and try different things. I highly recommend going against anything that isn’t in your niche because tracking numbers don’t mean much if they’re the wrong followers. You want people who are your ideal customers who want to buy your products.’
Candice isn’t so sure: ‘I don’t think it’s a business platform. I think it’s an influencer platform, and I think it’s a fun platform.’
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