With a greater awareness of marketing strategies and a growing presence of Gen Z workers, more businesses are turning to TikTok to grow their brands.
Going viral used to be a passing, lightning-in-a-bottle moment, but can now lead to meaningful growth for businesses.
An upsurge in business sounds great, yet many businesses do not know how to prepare for sudden success.
What are the pros and cons of TikTok virality for businesses?
Most people who have spent time on TikTok will have been greeted by videos produced by and for businesses.
Alongside the dedicated adverts that tend to be marked as such and promptly scrolled past by many users, business-generated content can integrate seamlessly alongside other videos on a user’s ‘For You’ page.
From baristas recreating scenes from movies to accountants showing off the latest trending dance moves, businesses are embracing the platform in a range of innovative ways.
The often inscrutable nature of the TikTok algorithm pushes content beyond local areas, meaning that users in London can be treated to a video of a café in Blackpool that they otherwise would never have heard of.
For businesses with an online presence, the extra outreach can have a profound effect.
Research from money.co.uk, in which 500 business owners were surveyed, found that 67 per cent of small retail business owners experienced a surge in orders after a video went viral on the platform.
Even businesses that are purely offline in their service offerings likely benefit from increased brand awareness, with a potential for more footfall as a result of trending videos.
However, the same research found that 42 per cent ran out of stock following a viral video and that 27 per cent faced staffing problems and cash flow disruption trying to keep pace with heightened demand.
Nearly all the businesses that had achieved virality, 91 per cent, admitted to struggling with fulfilling orders after the surge.
While being clever, insightful, witty or charming can lead to a boost in sales, many small businesses have seen revenue plummet following social media misfires.
How can accounting help businesses make the most of viral success?
The stress of success can be a turning point for many businesses and knowing how to handle it effectively is the key to long-term growth.
In response to sudden success, it was found that 52 per cent of businesses turned to credit cards and 30 per cent to loans and external finances to manage the added pressure.
While these can be effective solutions, they should not be embraced without a thorough understanding of a business’s financial position.
Seeking expert accounting advice can help your business turn short-term success into long-term growth.
Before embarking on any new marketing strategy, whether it is on TikTok, other social media or more traditional avenues, it is worth reviewing your finances with an expert accountant.
Potential success can be forecast alongside current economic realities so that you can know how a sudden upturn or downturn would affect your business.
This is not the same as hiring more staff or filling a warehouse full of stock on the assumption that you will make a viral video and generate more traction.
Instead, it can show you ahead of time where difficulties may arise so that you can begin preparing for them should that become your reality.
In the current economic climate, we love to see businesses finding new and innovative ways of attracting new customers and boosting cash flow.
Our team are here to help you reap the benefits of your strategies so that success is the positive experience for you and your business that it should be.
Knowing how to invest increased revenue back into the business can also pave the way for more sustainable growth and brighter financial prospects.
Financial forecasting also helps with this, as it can brace your business for declines in revenue if the virality wears off.
We can also keep you aware of and compliant with any regulations or tax obligations that may change in the wake of significant upturns in revenue.
Get in touch with our team for help turning social media sensations into sustainable growth.
