I wanted to spend some time talking about the SVB crash and give a practical bit of advice PLUS invite you to a training dedicated to mastering PPC budgets for clients. Let’s get into it!
📉 Business Musings: One Practical Tip in the Wake of the SVB Crash
Unless you have been under a rock, you probably have heard about the Silicon Valley Bank failure last Friday, followed by the Signature Bank failure on Sunday. This is the most significant bank failure since 2008.
Real quick, this is what happened:
Silicon Valley Bank, a favorite of investors and startups in the valley, grew rapidly. To make money, banks have to invest their deposits; this bank invested mainly in low-interest-bearing Bonds.
As interest rates rose, this investment dropped in value drastically. The bank customers panicked and started pulling money out with lowered-value assets, and these withdrawals resulted in a significant cash shortage for these banks.
Customers of other banks started worrying and pulling money out, jeopardizing other banks. The Signature Bank was the victim of this panic Bank run. This scenario is very much like the Bank run of the 1930s.
If you’re thinking, “I’m a small business” or “I’m not banking in these Banks, why should I care?” Well, here’s why:
Bank Runs have a way of being contagious and can impact other banks/credit unions quickly, including your Bank/Credit union.
So what should you do? I’m not a financial advisor and this is not financial advice, but if you have more than $250K in any single bank or Credit union, spread the excess to another Bank/Credit so that no single bank has a deposit of more than $250K.
This simple action will keep your deposits safe. All bank deposits are insured up to $250K per customer by FDIC. Similarly, all Credit Union deposits are insured up to 250K by NCUA.
The funny thing is, I have known this rule for a long time. BUT both of our businesses, InvisiblePPC and Kuware, use the same bank. We had to quickly work on moving funds over 250K to other accounts. So if you are in this situation, act quickly to be safe.
💰 March’s Live Training: How to master PPC budgets for your clients
Whether or not you or a client have been impacted by the SVB collapse, the current state of things has everyone tightening their belt. If you’re running PPC ads or working with clients who are about to run ads the first question they’re going to have is around budget.
Picking the right budget is hard. This is even more true for new clients that don’t have a lot of data, whether that’s detailed business metrics and/or digital performance data.
That’s why I wanted to put together the definitive PPC budget training to help you start off on the right foot with your client and keep the relationship strong month-over-month.
During this 60-minute session, I’ll share the EXACT approach we take internally AND what we advise our partners to do when setting PPC budgets.
