Why Small Businesses are Embracing Failure on TikTok—and Winning
Social media has long been a tool for businesses to highlight their successes, showcasing polished branding and curated content. However, an emerging trend on TikTok is flipping that narrative. Small business owners are openly sharing their struggles, financial woes, and near-failures—and it’s working in their favor. By embracing vulnerability and authenticity, many entrepreneurs are seeing a surge in support, sales, and brand loyalty.
How TikTok’s ‘failing business’ trend started
The rise of this trend can be traced back to small business owners who took to TikTok not just to promote their products, but to share their hardships. Videos with captions like ‘My small business is failing’ or ‘I might have to close my store’ have gone viral, sparking an outpouring of empathy and support from viewers. Unlike traditional marketing that focuses on success stories, this raw and unfiltered content resonates with audiences who appreciate genuine storytelling.
For example, Emma Molloy, the owner of Cat Burglar Dough Co., posted a TikTok video explaining how her bakery was struggling to stay afloat. The post quickly gained traction, leading to an influx of new customers and online orders. Similarly, other small businesses have found that transparency about their financial struggles not only garners sympathy but also fosters a sense of community, with people rallying behind them to offer financial and emotional support.
The impact of vulnerability marketing on small businesses
The success of this approach is evident in the numbers. Many small businesses that have participated in this trend have reported increased engagement, follower growth, and, most importantly, a boost in sales. Consumers today prioritize authenticity, and when they see a business struggling, they are more likely to support it, knowing their purchase is making a real difference.
Business owners also credit this strategy with helping them build long-term customer relationships. By sharing their struggles and engaging with supportive audiences, they create a loyal fan base that continues to follow and support their journey, even beyond the initial viral moment. This sense of community is something traditional advertising often struggles to achieve.
Why authenticity drives customer loyalty
Psychologically, vulnerability fosters trust. When consumers perceive a brand as honest and relatable, they are more likely to develop a strong emotional connection with it. Marketing experts suggest that storytelling—particularly when it involves challenges and perseverance—has a profound impact on purchasing behavior. People are not just buying a product; they are investing in a story and a mission they believe in.
Experts like Alice Bull, founder of TikTok marketing agency Gratified, emphasize that businesses must strike a balance between sharing genuine hardships and maintaining a positive brand image. Over-exaggerating struggles or fabricating hardship for views can backfire, eroding trust rather than building it.
Risks and ethical considerations
While vulnerability marketing can be highly effective, it also comes with potential risks. Some businesses may be tempted to exaggerate their difficulties for sympathy, which can lead to credibility issues if audiences perceive dishonesty. It is crucial for businesses to ensure that their messaging remains transparent and ethical to avoid long-term reputational damage.
Another challenge is the sustainability of this approach. Once a business gains traction from a viral ‘failing business’ post, maintaining that level of engagement without relying solely on hardship narratives can be difficult. Brands must strategize on how to transition their content into ongoing engagement beyond the initial viral moment.
As social media continues to evolve, the demand for authenticity in marketing is unlikely to fade. Businesses that embrace transparency and community-driven storytelling will likely maintain strong customer relationships in the long run.
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