A time investment

It takes dedication to achieve social-media success.

"The common misconception about social media is that it's free," says Morgan. "Facebook and Twitter accounts are free, but for small-business owners in particular, time comes at a premium."

To keep from feeling overwhelmed, business owners should decide how much time they can dedicate to this burgeoning arena, says Galbraith. Some may need to hire social-media help.

Either way, business owners should first set goals, he says. For instance, an owner might want to increase store traffic by 20% by offering coupons via Facebook or another social-media site. Or a business-to-business company could plan to reconnect with 10 former clients and re-establish solid relationships in the next three months.

The goals should be clear-cut, but as many business owners have learned, the initial strategies might have to change.