

Since its 2016 launch, TikTok has evolved into a powerful marketing tool for small businesses. With an estimated 1.6 billion active users worldwide, TikTok can offer a unique opportunity to reach a vast audience.1 (external link)
This guide covers why TikTok can be crucial for small businesses, how to set up your profile, create engaging content, leverage trends, and measure your success.
Why TikTok is essential for small businesses
TikTok isn’t just for dance trends and funny videos – it’s become a key marketing tool for many small businesses. Unlike other social media platforms where you need a large following to be seen in the first place, TikTok’s algorithm can help even brand-new accounts reach thousands of potential customers.
What sets TikTok apart is how users interact with content. On average, users spend nearly an hour each day on the app, and many of them actively engage with videos rather than just scrolling past.2 (external link) This can mean your business has a better chance of capturing attention and making a lasting impression. Plus, TikTok’s format encourages authentic, creative content that doesn’t need high production value – perfect for small businesses with limited resources.
While going viral can bring incredible opportunities, it also comes with unique challenges. Our guide shares real-world insights from small business owners on handling viral success.
Understanding the TikTok algorithm
TikTok’s algorithm determines who sees your videos. Unlike other platforms that mainly show content from accounts you follow, TikTok’s For You Page serves up videos based on what it thinks each user will enjoy.
Watch time is key on TikTok. The longer someone watches your video, the more likely it is that the algorithm will show it to others. The first few seconds of your video can be crucial. If viewers don’t find your content interesting, they’ll swipe away, and the algorithm notices. Many successful businesses focus on creating a strong hook that makes people want to keep watching.
Videos that keep viewers engaged until the end get a major boost. Active engagement matters too – every like, comment, and share tells TikTok that your content is worth promoting.
Setting up your Business TikTok profile
To set up your Business TikTok profile, follow these steps:
- Switch to a Business Account: Start by creating a regular account. Then, find settings, select ‘Manage Account’, and tap ‘Switch to Business Account’. This gives you access to analytics and other business features
- Choose the right profile picture: Use your logo or a clear image that represents your brand, making sure it’s recognisable as a small thumbnail
- Craft a compelling bio: Include what your business offers, your unique selling point, and your brand personality
- Add a CTA link: Business accounts can add one website link in their bio. This could direct users to your online store, booking page, or latest promotion. You only get one, so make sure it’s your most important link
- Include contact information: Add your email or other contact details so interested customers can easily reach you
- Create consistent content categories: Use the Categories feature to organise your content by themes, which can help viewers find videos that interest them.
Create a TikTok content strategy
TikTok can require a unique approach that embraces spontaneity while maintaining your brand identity. Your TikTok strategy should outline what content you’ll create, when you’ll post it, and how you’ll engage with trends.
What makes TikTok different is its emphasis on entertainment over polished marketing. While Instagram might reward perfectly staged photos and Facebook values detailed information, TikTok users respond more to authentic, creative, and often funny content. The right approach to social media content should balance sharing your products or services with creating content that people actually want to watch.
For example, if you own a beauty salon, you might focus on three content pillars: hair care tips, behind-the-scenes hair styling, and shop updates. Posting a few times a week and responding to comments within 24 hours could help you build an audience that converts to customers.
Producing engaging content
The most successful business content on TikTok doesn’t feel like traditional marketing. Rather than focusing solely on your products or services, consider creating value for viewers while subtly showcasing your offerings.
Behind-the-scenes videos work well for small businesses. Show your production process, introduce team members, or reveal how you handle busy days. Little glimpses make customers feel connected to your brand’s human side. Product demonstrations are effective when they’re quick and highlight a specific benefit.
Educational content can position you as an expert in your field. A bakery, for instance, might share quick cake decorating tips, while a bookshop could offer concise book reviews. Keep these videos under 30 seconds for maximum impact – users value swift, useful information.
Finally, a storytelling element can be crucial. Even in short videos, create a beginning (hook), middle (value), and end (call to action). For example, start with an attention-grabbing statement, demonstrate something interesting, then tell viewers how they can learn more or purchase.
Leveraging trends and challenges
Trends are TikTok’s lifeblood, and joining them at the right time can dramatically boost your visibility. The key is to select trends that make sense for your business rather than forcing your brand into every viral moment.
You can check the Discover page daily to spot emerging trends. When you find something relevant, put your unique business spin on it.
Remember that trends move quickly on TikTok. What’s popular today might be forgotten tomorrow, so don’t spend too long perfecting a video for a trend that’s already fading. Being timely can matter more than being perfect.
Measuring success with TikTok analytics
Tracking performance can be key to refining a TikTok strategy. TikTok’s built-in analytics tools provide valuable insights about your audience and content performance that can help you improve your results over time.
Here’s how you can track your TikTok performance:
- Overview metrics: Monitor your video views, profile views, and follower count. Look for spikes to identify which content resonates most with viewers.
- Engagement rate: Calculate this by dividing total engagements (likes, comments, shares) by your views, then multiplying by 100. A healthy TikTok engagement rate is often considered between 5% and 15%, which is higher than on other platforms.
- Video performance: Check which videos get the most views, likes, comments, and shares. Notice patterns in your top-performing content to guide your future content strategy.
- Watch time: Pay special attention to how long viewers watch your videos. Higher average watch times signal to the algorithm that your content is valuable, increasing its reach.
- Follower demographic: Learn about your audience’s age, location, gender, and activity patterns. You can use this data to create content that appeals to them.
- Best posting times: The Followers tab reveals when your audience is most active. Schedule your posts during these peak times to maximise engagement.
- Traffic source: See whether viewers found your videos through the For You Page, following feed, or hashtag searches. This can help you understand which discovery methods work best for your content.
Set aside time each week to analyse your performance data and adjust your strategy. Small tweaks based on analytics can lead to significant improvements over time.
Disclaimer:
At Hiscox, we want to help your small business thrive. Our blog has many articles you may find relevant and useful as your business grows. But these articles aren’t professional advice. So, to find out more on a subject we cover here, please seek professional assistance.