It’s amazing that my party rental business is going strong nearly a year after COVID-19 almost knocked us out. After getting a Paycheck Protection Program loan and focusing on smaller events, we’re finally getting back to normal as the economy reopens. I thought we were about ready to grow again, but now I’m concerned that Congress is advancing ridiculous legislation that could really hurt our business and many more.
For more than a year, Congress has been investigating big tech companies like Facebook and Google. Now, they are considering aggressively regulating digital platforms — perhaps even breaking them up entirely — and they don’t seem to understand that little companies like ours succeed by standing on these giant companies’ shoulders. Facebook, Google, Yelp and other companies offer digital tools that help small businesses reach more customers and grow. After everything we’ve been through, now is the worst possible time for Congress to regulate the big guys in ways that rebound against us.
With the economy reopening, people are planning birthday parties, graduations and other gatherings they have missed for more than a year. Our business delivers chairs, popcorn machines, helium balloons and other party favorites. There is a lot of competition, so we offer low prices and great service, but first, people have to know about us and be confident that we deliver high-quality products on time, every time. That’s why digital advertising and marketing are game-changers.
Google Ads is one of our secret weapons. When the business first opened, we bought expensive phone book ads that were utterly useless. We turned to Google Ads and increased sales by 900%. Digital advertising is low-cost and effective. Without digital ads, our business never would have gotten off the ground.
We also do really well with more than 100 reviews on Yelp, and lots of small businesses have Facebook pages. There are so many small business choices with digital advertising and marketing, regardless of whether your business and your customers are local, regional or global.
I am concerned this won’t always be the case if Congress doesn’t understand what it is doing to small businesses. One proposal would prohibit digital platforms from acquiring smaller companies, which is often how big companies add new functions to old products. I want multiple products and tools on one platform so I can have a single password and a consistent experience. This is how Google and Facebook add value and stay affordable.
Another proposal would require platforms to stop using a user’s data when that user leaves the platform. But data is what powers digital advertising. Digital ads will be more expensive and less effective with less user data….
Read More: My Bay Area business survived COVID-19 but might not survive Congress