If you are in the process of starting a business, you are likely to be doing everything that is in your power to increase your chances of success before you invest time and financial resources into your project. And, investing in a Master of Business Administration (MBA) is certainly a valid option.
So, should you get an MBA before starting a business? If you are struggling to make a choice, the pros, cons, and considerations below can help.
5 Benefits of Going to Graduate School Before Starting a Business
Education is one of the best investments you’ll make in your life, especially if you are investing your resources to achieve higher education certificates. And, MBAs are not an exception!
An MBA can certainly kickstart your career and give you the foundations needed to establish a successful business. Learn more about the benefits of this choice below.
It Gives You a Better Understanding of the Global Market and Emerging Trends
Starting a business certainly requires you to have a thorough knowledge of the local economy, competition, and third-party providers. But what many small business owners fail to understand is the influence that global trends and innovations can have on their own daily operations and chances of success.
Investing in an MBA can help you better understand how the world of business is developing on an international scale and teach you how to use the latest insights and techniques to hone your competitive edge.
It Can Help You Build Valuable Industry Connections
One of the greatest benefits of investing in an MBA is the network of alumni and industry connections it gives you access to.
From being invited to industry events to building relationships with successful entrepreneurs, all respectable MBA courses offer a wide range of opportunities to boost your network.
It Works as an Essential Safety Net
Having a network you can rely on not only helps you find a mentor in the industry but can also represent an essential safety net.
For example, if your business idea does not take off or you are considering switching to a corporate career, having an MBA on your CV and a network of connections can help you land a great job!
It Can Boost Your Credibility as a First-Time Entrepreneur
If you are pursuing a career as an entrepreneur, having an MBA offers many benefits for business owners – and one of the greatest advantages is that high-quality certifications can boost your credibility.
As a first-time entrepreneur, having an MBA on your CV can improve your reputation in the eyes of investors and boost your chances of accessing the funds needed to take your business off the ground!
It Can Give You Access to Higher Salaries
MBAs represent a prestigious accreditation to hold and can increase your corporate salary by 22-40% compared to other professionals holding a Bachelor’s Degree. If you are already working in the field and hoping to bootstrap your business, accessing higher salaries can help.
5 Drawbacks of Investing in an MBA
Although getting an MBA might be a winning choice for many professionals in the industry, not all entrepreneurs will benefit equally from this investment. And, given the considerable amount of time and resources you’ll need to invest to obtain your MBA, it is crucial to set your expectations correctly.
These common drawbacks can help you better understand what’s ahead.
MBAs Come at a Not Negligible Cost
MBA programs vary in terms of length and cost. However, generally, these programs can be completed in 12 to 24 months, depending on whether you have chosen a part-time or full-time program.
Besides the time investment that a Master’s Degree requires, MBAs can cost nearly $225,000. These costs can be reduced by over $40,000 by opting for online programs or avoiding on-campus accommodation and board.
MBAs Are Not Strictly Necessary To Start a Business
According to statistics by the Kauffman Foundation, nearly 30% of entrepreneurs and business owners in the US have a Bachelor’s degree and just above 22% of them hold a doctorate or a Master’s degree.
Ultimately, investing money and resources in an MBA isn’t strictly necessary, especially if you can count on your entrepreneurial flair and sharp business acumen.
An MBA Might Not Be Useful if You Don’t Intend To Work in Your Field
If you believe that business management and administration are only transient phases on your career trajectory, investing in an MBA might not represent the best way to use your resources.
Indeed, since this education course is highly specific, it might not be relevant to your CV when applying for a different job or position.
Work Experience Is Often Just As Important as Earning an MBA
While MBAs represent the obvious choice for many professionals looking to start or manage a business, this isn’t the only option to consider.
To boost the chances of success of your new business venture, spending time collecting valuable work experience and finding the assistance of a mentor are great ways to tap into networks, insights, and knowledge.
Earning an MBA Does Not Guarantee That Your Business Will Be Successful
Undoubtedly, the notions you’ll learn during your MBA course will help you make better business decisions. And, in some cases, this experience can make a difference in the chances of your business surviving its fifth anniversary.
At the same time, an MBA isn’t a guarantee of success! In most cases, your experience in the field, business acumen, and entrepreneurial spirit are what make a difference.
Should You Invest in an MBA? Here Are 3 Factors to Consider
The pros and cons above can help you better understand what to expect. However, before enrolling in an MBA program, there are some key considerations worth making, starting with the ones below.
But, if you are still in doubt, don’t underestimate the benefits of partnering with an experienced career coach!
You’ll Need to Pass the GMAT or GRE for Most MBA Programs
Most graduate schools around the US have strict admission requirements, including passing a GMAT or GRE test. And, despite your knowledge and experience in the field, these standardized tests can represent a significant challenge.
With over 366,000 candidates taking the test each year, choosing Graduate Record Examination prep courses and programs that are highly accredited can set you a step ahead of the competition.
You Can Get your MBA While Running Your Business!
If you are struggling to choose between investing your funds in your business or in an MBA, you might consider the benefits of embarking on a higher-education journey while running an organization.
This might mean choosing online MBA courses or opting for part-time programs. However, this option can help you avoid choosing between two of your main goals!
The Competition for The Best MBAs Is Incredibly Fierce
Before diving into an MBA course, it is important to understand that these programs are not the same as standard Master’s Degrees. The competition among candidates is at an all-time high, and graduates with a certification from lower-ranked programs might not be able to reel in the expected results.
Ultimately, you should take a hard look at your availability, determination, and academic skills before deciding whether this option is the best one for your needs.