07/ 26/ 2006
As you make your way through college, you have so many options available to you and so many decisions to make. As a young entrepreneur, perhaps the thought of business school has crossed your mind. But do you need your masters' degree in business to be in business?
An MBA is a graduate-level, broad program of study including but not limited to the following areas: accounting, economics, finance, management, marketing, statistics and business strategy. The programs typically take two years to complete and the course work usually blends study in business theory with applications that will be useful to helping you run your business.
While giving yourself the best possible education can never hurt, you might find that an MBA isn't necessarily the best avenue to pursue, at least at this point. This might be especially true if you've been balancing your business with school for the last few years and are eager to start growing your business full-time. However, if your business is still a part-time endeavor, then perhaps going ahead with an MBA program while you're still in study mode is the best idea for you. To help you decide, let's look at some pros and cons.
Pros of pursuing an MBA
1. Programs offer a broad range of studies
As an entrepreneur, you're responsible for being knowledgeable in all areas of the business world. A good MBA program will allow you to get a grasp of all the basics of business theory and application, while specializing in the area that will benefit you the most. If your business specializes in an area that is undergoing changing market conditions, an MBA will help you prepare for a more uncertain future.
2. Gives you credentials
An MBA is a degree that shows people you're serious about being in business. This will not only impress potential clients but potential investors as well. When applying for business loans, an MBA degree will look good on your application.
3. Place to make contacts
In an MBA program, you'll meet a variety of people who are as enthusiastic about business as you are, and who come from various stages in their careers. Unlike your undergraduate studies, in an MBA program, you'll meet students who will be bringing decades of work experience into the classroom, as well as professors who will be experts in their fields. Both your fellow students and teachers will be invaluable resources, both as contacts in the business world and as like-minded friends.
4. As a small-business owner, your chances of getting into a good MBA program are high
Most MBA programs won't just be looking at your grade-point average and application essay questions; they'll want to see what unique perspective and energy you'll bring to the classroom. As someone who has already taken the initiative to start a business at a young age, you'll look good to the admissions committee and should therefore apply to at least a handful of competitive programs, along with a few fallback options, should you decide to take the plunge.
Cons of pursuing an MBA
1. The cost
Plan on spending at the very minimum $50,000 on your MBA degree. Also consider that an MBA will be time-consuming and will cut in on the hours you have to devote to your business, which often translates into lost profits.
2. Not necessary for your foreseeable business future
If you feel that your undergraduate business classes have given you the skills you need to successfully grow your business for now, it might be a better idea to put off pursuing your MBA for a little while. Once you have a full and knowledgeable staff and comfortable profit margins, you might be more secure putting in less time at work to further advance your education.
3. If it's not broke...
If you're running a campus pizza parlor, you don't need to be well-versed in global economies. There are simply many types of businesses that can be run quite effectively without an MBA. This isn't to say an MBA couldn't be beneficial, especially if you have big future plans for your company, or simply enjoy learning about business theory and history. But you shouldn't expect an MBA to automatically increase your profits or the efficiency with which you run your business.
Luckily, as someone still in school, you have the opportunity to do some firsthand investigating before making your decision. If you're a business major, talk to your professors and get some recommendations. They may be able to put you in touch with students currently pursuing their MBAs or could even arrange for you to sit in on a few MBA classes to get the feel for what goes on in a typical program.
