What is a Hashtag? A Simple Guide for Small Businesses

In today’s digital age, social media has become essential for businesses to connect with their audience.

One key element of social media marketing is the hashtag. You might have seen it everywhere, but what is a hashtag, and how can it benefit your small business?

Let’s break it down in the simplest terms.

Disclosure: This content may contain a few affiliate links, which means if you click on them, I will get a commission (without any extra cost to you).

What is a Hashtag?

A hashtag is a word or phrase preceded by the symbol “#.” It serves as a way to categorize posts on all major social media platforms like Instagram, Facebook, X (formerly Twitter), LinkedIn, YouTube, TikTok, and Pinterest.

You can add hashtags to your social media posts, bios, and even comments. Think of it as a label that helps users find content related to a specific keyword, topic, or theme.

This is how a hashtagged word looks on social media platforms like Instagram:

how hashtags look like

The Origin of Hashtags

Hashtags first gained popularity on Twitter back in 2007. An American blogger and product consultant, Chris Messina, first suggested the use of the hashtag symbol, “#,” in a 2007 tweet.

first suggestion of using hashtags on Twitter
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Chris also talked about his ideas of how hashtags or tags can be used on Twitter to group conversations in a blog post. Other Twitter users contributed to his ideas.

Twitter first officially started hyperlinking hashtags in July 2009, making them more useful. Slowly, Facebook also replicated the use of hashtags.

Since then, most online conversations and social media posts now include hashtags as a way to group tweets or posts based on common topics, themes, or interests. They make it easier for audiences to find and engage with content and have gradually become a fundamental part of conversations across various social media platforms.

Understanding Hashtags: How to Create a Hashtag

Creating a hashtag is as simple as adding the hashtag symbol “#” in front of the word or phrase you want to turn into a hashtag. Follow these simple rules:

  • No spaces
  • No punctuation marks
  • No special characters

Just add the pound sign or the hash symbol “#” in front of your keyword. For example, “#SmallBusinessTips” or “#EtsySeller.”

It’s essential to keep hashtags concise and relevant to your social media post.

The Impact of Hashtags: Why Do You Need to Use Them?

Hashtags play a crucial role in increasing the reach and engagement of your social media posts.

When users search for a particular hashtag, they can discover your content, even if they don’t follow your account. This exposure can lead to more likes, comments, and shares, helping you connect with a broader audience.

For example, if you follow the “#smallbusinesstips” hashtag on Instagram, you’ll get access to all content tagged using this hashtag even if you don’t follow the creators of any of the posts.

follow a hashtag example
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As a small business owner, you can leverage hashtags for social media marketing and branding purposes.

By using popular or trending hashtags related to your industry, you can attract attention and join conversations within your niche or subject matter expertise. Additionally, creating unique branded hashtags can help you foster community engagement and promote brand awareness.

How to Use Hashtags Effectively on Social Media

Here is a quick guide to help you start using hashtags to promote your products and services on social media:

1. Research Trending Hashtags

Use the search bar on social media platforms to discover trending hashtags relevant to your industry.

For example, if you sell products like eyeliner, you can search for “#eyeliner” in the search bar to identify relevant trending hashtags.

search for trending hashtags in the search bar of instagram

You can also look for niche-specific hashtags like:

  • #eyemakeup
  • #eyemakeuplooks
  • #eyemakeuptutorials
  • #beautyproducts
  • #beautyproductonline

All you need to do is search for different relevant terms and see the hashtag suggestions by the social platforms.

Another way to find trending hashtags for your business and product promotions is to use hashtag research tools like IQ Hashtags and Tailwind Hashtag Finder.

Tailwind Hashtag Finder offers color-coded hashtag suggestions related to the keywords you type for niche-specific (grey), good (light green), best (dark green), and competitive (red) hashtags.

2. Use Hashtags Specific to Your Social Media Post

Use specific hashtags that accurately describe your post and target audience.

For example, DreNailedYou is a home-based small business run by a woman in Oakley, California. In the post below, she uses hashtags that describe her nail set product such as “#nails,” “#acrylicnails,” and “#gelpolish.”

use hashtags that describe your post example
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She also used hashtags describing her business such as “#womenownedbusiness,” “#teenbusinessowner,” and “#homebased.”

3. Mix Broad and Niche Hashtags Up

Don’t rely solely on popular hashtags. Incorporate a mix of broad and niche hashtags to reach different audiences. Broad hashtags like “#smallbusiness” and “#entrepreneur” attract a wider audience, while niche hashtags like “#[yourcity]coffeeshop” or “#handmadejewelry” target users with specific interests.

For example, as a cleaning business specializing in upholstery cleaning, here are some broad and niche hashtags you can use:

  • Broad hashtags
    • #cleaningbusiness
    • #cleaningservicein[yourcity]
    • #homecleaningservices
    • #cleaningtipsandtools
    • #cleaning
    • #cleaningservice
    • #homecleaning
    • #deepcleaning
    • #ecofriendlycleaning
    • #localbusiness
    • #supportsmallbusiness
  • Niche hashtags
    • #upholsterycleaning
    • #carpetcleaning
    • #carpetsteaming
    • #upholsterycare
    • #furniturecleaning
    • #stainremoval
    • #leathercleaning
    • #odorremoval
    • #petstainremoval
    • #furnituredoctor
    • #couchcleaning
    • #loveseatcleaning
    • #chairupholstery
    • #[cityname]upholsterycleaning

4. Create Your Own Branded Hashtags

Consider creating unique branded hashtags to promote your business and encourage user-generated content.

One of the finest examples of a small business making it big on social media with its branded hashtags is – Daniel Wellington.

They grew from a $15,000 startup to a $228-million watch brand by running a User-generated Content (UGC) campaign and collaborating with influencers.They encouraged shoppers to post pictures of themselves wearing Daniel Wellington watches with the hashtag, “#danielwellington” and featured the best photos of the day on their official account with the hashtag, “#DWPickoftheDay.”

branded hashtag success example
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They also featured the product images shared by their customers on their official product pages.

daniel wellington using customer phoos on product pages
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5. Use the Best Hashtag Practices for Maximum Reach

Hashtags are like tiny labels on your social media posts, helping potential customers discover your amazing business. But how do you use them effectively?

Here are some best practices for using hashtags to maximize your reach and engagement:

  • Aim for 5-10 relevant hashtags per post. Using too many can overwhelm readers, and too few might limit your reach.
  • It is okay to capitalize the first alphabet of the words in your hashtag. For example, “#SmallBusinessTips.” However, I’d recommend that you use lowercase alphabets to keep it light (no yelling!). For example: “#shopjewelry.”
  • Avoid using special characters in hashtags to make them easier to read and understand.
  • Remember, you can’t use spaces in hashtags else the word after the space will not be used as a tag. For example: See how “walk” in “#naturewalk” has not been underlined and tagged the second time in the caption below, because we added a space.
hashtag with spaces won't work example
  • Don’t just jump on every trending hashtag. Choose quality over quantity by picking hashtags that are directly relevant to your content and target audience. For example, for a post that promotes a new eyeliner, stick to hashtags relevant to “#eyeliner,” “#eyemakeup,” and “#newin[yourbrand].”
  • Remember, relevance is key to attracting the right people!

Grow Your Social Media Reach with the Right Hashtags

Hashtags are a great way to increase your account’s visibility and engagement on social media. By understanding how to use hashtags effectively, you can amplify your online presence and connect with potential customers.

So, start incorporating hashtags into your social media strategy today and watch your business soar!

Are you struggling to find the right hashtags? Download your FREE guide!

Download our free, downloadable PDF packed with carefully curated hashtags specifically designed for small businesses.

Inside, you’ll find:

  • Popular hashtags to increase your reach and visibility.
  • Industry-specific hashtags to connect with your target audience.
  • Engagement-boosting hashtags to spark conversations and grow your community.
  • Easy-to-follow pro tips on how to use hashtags effectively.

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