Hashtags for Small Businesses: Tips to Compete Without a Big Budget

As a small business, standing out on Instagram can feel like a big challenge—especially when you’re competing with larger brands that have massive marketing budgets. But here’s the good news: hashtags are your secret weapon.

Hashtags can help you grow your reach, connect with your local audience, and build a loyal community without spending a dime. When used strategically, they allow your posts to land in front of the right people, opening the door for organic growth and meaningful engagement.

In this guide, we’ll share simple, effective hashtag tips for small businesses that will help you compete with the big players—no budget required!

Why Hashtags Matter for Small Businesses

Hashtags might seem like a small detail, but their impact is huge. Here’s why they’re essential for small businesses:

1. Boost Organic Reach: Hashtags make your content searchable, helping you reach people outside your current followers.

2. Target Local Audiences: Geo-specific hashtags connect you with people in your area, which is perfect for local businesses.

3. Increase Engagement: The right hashtags attract the right people, driving more likes, comments, and shares.

4. Build Brand Awareness: Branded hashtags help you create a unique identity and encourage user-generated content (UGC).

Hashtag Tips for Small Businesses

Ready to get started? Here’s how to make hashtags work for your small business:

1. Research Local Hashtags

If your business serves a specific city, town, or region, local hashtags are your best friend. They help you connect with people in your community who are actively looking for local services or products.

How to Find Local Hashtags:

• Search for your city or town in Instagram’s search bar (e.g., #OxfordEats, #SmallBizNYC).

• Explore hashtags used by other local businesses and creators.

• Check trending hashtags for local events, seasons, or holidays.

Examples:

• A bakery in Seattle might use #SeattleEats, #SeattleBakery, or #PNWFoodies.

• A boutique in Austin could try #AustinStyle, #ShopLocalAustin, or #ATXFashion.

2. Mix Hashtag Types for Maximum Reach

Using a variety of hashtags ensures your content reaches different audiences. Here’s how to structure your hashtag strategy:

Hashtag Types to Include:

1. Local Hashtags: Connect with nearby customers (e.g., #PortlandMade).

2. Industry Hashtags: Attract people interested in your niche (e.g., #HandmadeJewelry, #CraftCoffee).

3. Descriptive Hashtags: Describe your product or service (e.g., #EcoFriendlyCandles, #FitnessGear).

4. Branded Hashtags: Create a unique hashtag for your business (e.g., #BakesByBella, #YogaWithElla).

3. Keep It Relevant

It can be tempting to use popular hashtags like #Love or #InstaGood, but these tags are often too broad and won’t attract the right audience. Instead, focus on hashtags that are specific to your business and what your ideal customer is searching for.

Example for a Small Business Bakery:

• Instead of #Foodie, try #CupcakeLovers or #GlutenFreeBakes.

4. Create a Branded Hashtag

A branded hashtag is a powerful tool for building community and encouraging user-generated content (UGC). It’s your business’s signature tag that your customers can use when they share posts featuring your products or services.

How to Create a Branded Hashtag:

• Keep it simple and unique (e.g., #BloomWithBella for a florist).

• Incorporate your business name, tagline, or product niche.

• Use it consistently in your posts, Stories, and bio to encourage followers to use it, too.

5. Use Hashtags in Stories and Reels

Hashtags aren’t just for captions—they’re a great way to make your Stories and Reels discoverable.

How to Add Hashtags to Stories:

• Use the hashtag sticker to add relevant tags to your Stories.

• Hide hashtags behind stickers, GIFs, or text for a cleaner look.

Example:

A coffee shop could share a behind-the-scenes Story of latte art with hashtags like #LatteArt, #CoffeeLovers, and #NYCCafes.

6. Engage With Hashtag Communities

Don’t just use hashtags—engage with the people using them! Interact with posts under the hashtags you’re targeting by liking, commenting, and following users. This builds relationships and increases the chances they’ll check out your business.

Pro Tip:

Spend 10-15 minutes a day engaging with local or niche hashtag communities to boost your visibility and establish connections.

7. Test and Analyze Your Hashtag Performance

Not all hashtags will perform equally, so it’s important to track what works and refine your strategy over time.

How to Analyze Hashtag Performance:

• Use Instagram Insights to see how many impressions your posts get from hashtags.

• Track engagement metrics (likes, comments, shares) for posts with different hashtag combinations.

• Experiment with new hashtags monthly and drop the ones that don’t perform well.

Tools to Help:

• Hashtagify: Discover trending hashtags and related tags.

• Keyhole: Track hashtag performance over time.

• Instagram Insights: Monitor reach and engagement directly from the app.

8. Don’t Overload on Hashtags

While Instagram allows up to 30 hashtags per post, using too many can feel spammy. Instead, focus on 10–15 highly relevant hashtags for a clean, effective strategy.

Examples of Small Businesses Crushing It With Hashtags

Here are some real-world examples of small businesses using hashtags to grow their reach:

1. Local Boutique: #ShopLocalDenver

A boutique in Denver uses #ShopLocalDenver to connect with their community and support other local businesses. This hashtag creates a sense of belonging and encourages followers to shop small.

2. Craft Bakery: #GlutenFreeGoodies

A bakery specializing in gluten-free treats uses #GlutenFreeGoodies to reach health-conscious foodies. It’s niche-specific and highly relevant to their audience.

3. Yoga Studio: #YogaInThePark

A yoga studio offering outdoor classes uses #YogaInThePark to promote events and inspire local followers to join them.

Final Thoughts: Leverage Hashtags to Grow Your Small Business

You don’t need a big budget to grow your business on Instagram—just a smart hashtag strategy. By focusing on local, niche, and branded hashtags, you can organically reach the right audience, foster engagement, and build a loyal community around your brand.

Now it’s your turn! What’s your favorite hashtag for your small business? Share it in the comments or tag us in your next post—we’d love to see how you’re using hashtags to grow!