How Social Media Impacts a Small Business’s Ability to Innovate
Social media is crucial for business success. It can easily make or break a business, depending on the type of strategies you use. But how does it affect a company’s innovation ability? Is it better to think outside the box or follow social trends? Let's explore some of the effects social media have on SMBs, especially when it comes to innovation.
Positive Effects on SMB’s Innovation Ability
There are two main benefits social media have brought to small businesses:
1. Social Platforms Leveled the Playing Field
By far, the most important benefit for small businesses is having a channel where they can grow their presence organically. Before social media, companies needed to invest a lot of money in advertising to reach their target audience. However, creating a social media presence is much more cost-effective. Although you need to invest time and money into creating high-quality content, if you focus on the right messaging and strategy, your organic reach can skyrocket and increase your return on investment (ROI).
But keep in mind, since now everyone is on the same platform under the same rules, it all comes down to how original and creative you can be. Businesses must create new ways to connect with their customers.
2. Social Media Pushes Technological Innovations
The social media explosion has prompted new technologies to help SMBs manage their social presence, create new experiences, and improve their workflows. This is both good and bad for small businesses. Those that are not technically savvy will have to change their ways and hire experienced professionals or learn how to do it themselves.
Still, once small businesses embrace automation and technology, because of the demand there is from the younger generation, they will be able to save a lot of time and money.
Social Media Drawbacks on Innovation
On the other hand, social platforms present various challenges for small businesses that do not have the required knowledge or resources:
1. Social Media Can Be a Huge Investment
Building organic traffic can be costly. For platforms like Instagram, you will need to hire designers, writers, and community managers. All of these represent overhead expenses that may or may not pay off later.
2. Open for Everyone
Another problem is the competition. Small businesses can have a hard time catching-up with bigger competitors. Companies that have more money and other benefits will always be at an advantage.
Sweet Tip from Ally:
In the end, social media is all about innovation. You can either create your own trend or take advantage of one that already exists. The good news is that everything is within reach. However, the bad news is that it is within the reach of your competitors too.
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