'My small business is failing': How entrepreneurs on TikTok are embracing their worst business days — and seeing results

• Small businesses on TikTok are telling their customers about their worst business struggles.
• "My small business is failing" and other messages have become common hooks.
• It's a good way to build authenticity, marketing experts say — as long as it's done smartly.

In the last couple of years, small businesses have littered TikTok with confessionals.

"My small business is failing," is how they often begin.

"If you've been following me for the last couple of months, you may think that it's not," craftsperson Laura Craine said in a post last year. "But in reality, I haven't received an order in weeks."

Another TikToker said: "On the outside, it might look like everything is going well and I'm making lots of orders, but I'm just not."

Ranging from straight-up claims of failure through to warts-and-all insight into the toughest days, each post aims to grab a precious few seconds of your attention, and maybe a portion of your cash.

They resonate well with users "who want to see more than the polished, curated success stories that once dominated social media and Instagram," Inigo Rivero, cofounder of UK-based TikTok marketing agency House of Marketers, told BI.

It also comes "as more small business owners are embracing radical transparency" on TikTok, Rivero added.

And in many cases, it seems to be working.

I remember thinking: 'I can't do this.'

Emma Molloy has long known the power of lifting the veil on her vegan-friendly doughnut business through TikTok, and being transparent about the ups and downs of making her four-year-old business work.

But the hardest moment for her company, Cat Burglar Dough Co., came in August. She had just given birth and was exhausted. Sales had been poor, and she had just learned that her maternity cover had fallen through.

"I was in a real corner and I remember just sitting there thinking, 'I can't do this,'" Molloy, 30, told BI.

She posted about her worries on TikTok, saying: "This month I've come closer than I ever have before to quitting," but added that she was determined to carry on.

A couple of days later, she was sitting on the floor with her baby when her phone suddenly started buzzing nonstop.

Notifications were flooding in. "Order, order, order, order," she said.

Over on Facebook, an influencer named Lisa Dollan — more familiar to her hundreds of thousands of fans as Yorkshire Peach — had just posted a glowing review.

"We had about £3,000 [about $3,800] worth of orders in a week," Molloy said, adding that the business turned a corner after that.

Business Insider wasn't able to independently confirm the amount.

Dollan didn't respond to BI's request for comment. It's unclear whether Molloy's emotional post prompted her reaction.

But some business owners told BI that posting some variant of "my small business is failing" has brought them unusual engagement, new customers, as well as encouragement at a time when they sorely needed it.

The pull of schadenfreude

Creative duo Caitlin Derer and Joseph Lattimer hopped on the trend in August, with a video that has been watched more than 1 million times.

"For us that's huge," they said.

They used the format as a vehicle to talk about how hard they were working and what they needed to turn the business into a success.

Their business, Collectable Cities, makes art toys for the high-end souvenir market, but the pair had reached the "soul-destroying" part of the business where practical issues turned the spark into a slog, Derer said.

"Then you see someone else make a video, where you can feel their pain through the screen and it's like, 'I should be also sharing some of this,'" she said.

The response to their video spanned thousands of comments, giving them exposure to new customers, as well as a wealth of feedback and suggestions.

Alice Bull, founder of Gratified, a TikTok-focused strategy and content agency, says she finds these kinds of posts compelling and has even ordered from businesses after seeing them. She characterizes it as a "storytelling hook," one of five tried-and-tested approaches that she says tend to produce results on the platform.

Bull regularly encourages her clients to not just showcase their products, but to pull back the curtain on their own stories.

"Telling stories, especially on TikTok right now, is one of the most powerful things you can do, particularly with a small business," she told BI.

"Anything you can do to connect with the audience that will potentially become your customers is absolutely vital," she added. "And one of the quickest ways you can do that is by being slightly dramatic."

She said that research shows that emotionally positive content gets the best engagement, but negative content has its own pull.

Indeed, one 2023 study that tracked the eye movement of TikTok and Twitter users suggested that viewers spend more time on negative rather than positive content.

It works because people immediately want to know what happened, Bull said. "You want to either experience that emotion with that person or understand what they went through" in order to save yourself from the same fate, she said.

It can also be a smart way of adding context to unpopular decisions like price hikes, Bull said.

Staying authentic

Done right, the hook can tap into the authenticism that has underpinned other TikTok trends in recent years, like deinfluencing and the "social media isn't real" hook.

But there's an obvious business risk to telling the world you're failing.

People who adopt this strategy need to weigh up the risk of harm to their long-term reputation with the benefits of appealing to people through honesty, Bull said.

There's also a potential ethical problem that comes with virality — if declaring your troubles is such an effective cash lever, there'll always be the temptation for successful businesses to exaggerate or even lie about their struggles.

Indeed, so many iterations have proliferated on the platform that it's been boiled down to something like a script, with audio from particularly successful versions borrowed by others, who simply paste it over their own visuals.

Rivero said that quality also matters.

"I'm not just going to buy a product just because I like the story," he said. "It needs to come hand-in-hand with a good quality product."

He added that a dropshipper who makes the same complaint as a one-person craft business is unlikely to get much sympathy.

Building trust

Laura Craine said that the massive response to her "small business is failing" post was part of what rallied her to carry on with her craft business when she was almost ready to close shop.

"At the time, my videos weren't doing great," she said. But this one took off, bringing her hundreds of new followers and a wealth of supportive feedback.

Craine's business, With Love And Dreams, preserves personal items like wedding blooms or human remains in resin to create memorial keepsakes.

The fact that she handles sensitive and irreplaceable items means her business depends on maintaining a deep wellspring of trust. Being completely authentic with her audience just made sense.

"I want people to see that I'm a real person," she said.