Experts warn businesses about misleading TikTok advice
The hidden dangers behind viral TikTok business tips
TikTok has over 1.12 billion active users each month, with around 34 million videos posted daily. Among all this content, a lot of misleading business advice is gaining attention from entrepreneurs. Research shows that as many as 91% of financial videos on the platform are misleading or missing proper disclaimers.
To help business owners steer clear of costly mistakes, experts at Liquidation Centre have taken a closer look at some of the most popular business tips circulating on TikTok and the risks they can pose if followed blindly.
Why it pays to be careful with TikTok business advice
Because TikTok videos are short, fast-paced and largely unregulated, misinformation can easily slip through. While some advice may sound convincing, it isn’t always suited to your business, and could end up doing more harm than good. Here are a few trending business ideas worth a second look.
1. The 90/10 Business Model
The 90/10 model suggests that 90% of a company’s income comes from 10% of its customers, so businesses should focus most of their efforts on that small but valuable group. It’s an appealing concept, concentrating on your highest-spending clients and tailoring products or services around them.
However, this approach doesn’t work for every business. Focusing on the wrong customers or products can lead to poor decisions, and simplifying your strategy too much might mean missing new opportunities. It’s important to make sure this model actually suits your goals and finances before using it.
2. Competitor Reviews
At first glance, looking at competitor reviews seems like a good way to see what customers like or dislike, but it isn’talways dependable. Reviews can be manipulated through fake or paid feedback, giving you a distorted view of what your market really thinks.
The best insights come directly from your own audience. Conducting proper market research and speaking to your customers will give you far more accurate data. Competitor reviews can still play a role later, but they should never replace genuine research. Skipping that step is one of the main reasons small businesses fail.
3. The ‘Get Rich Quick’ Trap
TikTok is flooded with content promising easy ways to make fast money. But as tempting as those shortcuts may sound, they often come with hidden costs.
A typical example is outsourcing work overseas to cut labour expenses. While this might seem like a good cost-saving move at first, it can easily backfire, leading to lower product quality, customer dissatisfaction, and reputational damage. There are also ethical issues to consider, especially around fair pay and working conditions. Short-term gains rarely make up for the long-term risks to your brand and credibility.
Expert insight from Liquidation Centre
Richard Hunt, Director at Liquidation Centre, urges business owners to think critically before implementing advice from social media.
“No two businesses are the same. What works for one might not work for another. Following generic advice from short-form videos, without proper context or due diligence, can lead to serious problems.”
“Always take guidance from trusted, credible sources, whether that’s experienced professionals, verified entrepreneurs, or industry experts. Having a solid business plan and a clear understanding of your market will put you in a much stronger position for growth.”
“With misinformation spreading so quickly online, it’s vital to double-check what you’re hearing. The business world is already challenging enough; decisions should be based on evidence and strategy, not viral trends. Thoughtful planning and solid research will always beat quick-fix advice.”