Is taking an MBA worth it?

[SethDamien]

I dont know where to post this since its not a relationship issue. But I just want to hear your take on the matter

 

does taking an MBA necessarily mean you have a better chance at success in starting a business than having no MBA?

 

Is it better to manage your own assets with your acquired knowledge in MBA rather than hiring someone else to do it for you?

 

what's your take on this..?

[DreamP]

I dont know where to post this since its not a relationship issue. But I just want to hear your take on the matter

 

does taking an MBA necessarily mean you have a better chance at success in starting a business than having no MBA?

 

Is it better to manage your own assets with your acquired knowledge in MBA rather than hiring someone else to do it for you?

 

what's your take on this..?

 

An MBA from a prestigious institution will help you in every aspect of your professional life including getting loans for a startup and making connections. If you are looking at an online school or a never heard of school, then don't waste your time/money. My husband used to hire MBAs and if the MBA didn't come from one of the top business schools, then it didn't exist.

 

Getting an MBA is usually not about personal asset management. It really depends on what track you follow. You can't always manage your own money, but research what you are doing. Even with the MBA, you would still have to do your own research.

[SethDamien]

Thanks DreamP!

 

My thoughts exactly. There are plenty of resources to learn MBA from besides uni, but as you said, it helps in getting loans and making connections which i need above anything else.

I dont plan to use it just to look good on resume either. I'd rather own a business.

 

The school is prestigious in my country but not internationally... I dont think i can ask for more...

[Els]

The vast (and I mean VAST) majority of successful startup founders don't have a MBA.

 

On the other hand, if you're looking at moving up the corporate management ladder, it's a huge bonus from what I've seen and heard.

[SethDamien]

Yeah, im still torn about it now... Like i said, i dont plan on using it to climb corporate ladder... Im more of a start up guy.

 

Warren Buffet has a MBA but Steve jobs and Mark Zuckerberg dont... And i liken myself to the latter. I guess having no MBA gives room for more creativity than following stiff financial guidelines MBA instills.

[SammySammy]

What was your undergraduate major?

[Els]

Yeah, im still torn about it now... Like i said, i dont plan on using it to climb corporate ladder... Im more of a start up guy.

 

Warren Buffet has a MBA but Steve jobs and Mark Zuckerberg dont... And i liken myself to the latter. I guess having no MBA gives room for more creativity than following stiff financial guidelines MBA instills.

 

I don't think Warren Buffett is a startup founder - he's more of an investor who worked his way up the corporate ladder.

 

If you're interested, I've found that How to Start a Startup is a good free resource to learn about startups, and the lectures are mostly given by successful startup founders (if you're in the startup scene, you'll immediately notice some familiar names on it).

[SethDamien]

Ok, here's a longer story.

 

I'm an architect but i want to learn the business side of it.

Unfortunately, many of my peers have become too technical that they forget the business aspect of it.

 

I've worked with too many architects and firms to judge that they treat each project simply as a source of income.

 

I once had a boss in a moderately sized firm that underpays his employees and tells us the firm is struggling, yet within the same year bought 2 new cars and is building a 500 sq.m home in a very exclusive subdivision.

I dont mind it though, he does as he pleases with his own money.

 

Others just get too old until the firm vanishes. Only the 1% become magnates.

 

For me however, im geared towards being a real estate developer. Use what little amount i earn for my first few projects and use it as down payment for a bank loan to build my first rental houses/office. And maybe perhaps franchise other form of businesses here and there...

 

I want to come to a point where i dont have to work with my own two hands when im old just to earn. Plus, i want to employ people as a means of providing jobs. Times are hard enough as it is.

 

Bottomline: build an empire. It may be too ambitious, but hey, goals are free.

[SethDamien]

If you're interested, I've found that How to Start a Startup is a good free resource to learn about startups, and the lectures are mostly given by successful startup founders (if you're in the startup scene, you'll immediately notice some familiar names on it).

 

 

Thanks! will definitely look this up!

[Emilia]

An MBA doesn't teach you how to run or start a business. It churns out the management consultant types that never get their hands dirty and rush around with charts and clipboards.

 

The truth is, you can't learn how to run a business unless you actually run one. A book keeping course would benefit you a million times better than an MBA.

 

It's actually great that you want to understand how this works, if you want to get the go-getter mindset, try to work in sales. I don't know your financial situation or how your career is set up. But with around and working with sales people would teach you a thing or two about commercial accumen.

 

Alternatively, you could start a small business on the side.

[Emilia]

I'd also add that most business fail within the first 12 months. I'm not trying to turn you off, merely pointing out that it's a steep learning curve and that it's hard to keep up with the constantly changing markets.

 

Read Eric Ries's 'The Lean Startup'. It explains concepts such as the 'Minimum Viable Product', the concept of getting your products out in the market as soon as possible before it's 'perfect' to avoid going down blind alleys, investing a lot of time and money and finding people don't want what you thought they did.

 

Constant reinvention, new releases, avoiding the traps of new startups. It's a good read.

[TheFinalWord]

Look for programs with AASCB accreditation.

 

Top schools, you will need to get a 700+ on the GMAT (I spent like two weeks prepping!)

 

Sample questions (if you are an architect, you may have sufficient math background)...

 

[SammySammy]

Okay.

 

When you read articles or books about entrepreneurship, you'll find that the main reason so many businesses fail is because the entrepreneur didn't know their numbers.

 

You've got to have accurate numbers, understand what the numbers mean and know how to utilize the numbers to advance your business.

 

In my opinion, for someone like you without a business background, there is no better way to learn and understand the numbers than a MBA.

 

Accounting is called "the language of business".

 

Don't think a MBA will constrain your creativity. It won't. It'll just help you to understand the business of business. You can still be a great architect or real estate developer. A MBA will just give you some extra tools to help build your business. How to speak the language.

 

You still have to do the work to build the business, but knowledge is power. I'd rather know that not know.

Edited June 13, 2016 by MidKnightDreams

[Emilia]

Okay.

 

When you read articles or books about entrepreneurship, you'll find that the main reason so many businesses fail is because the entrepreneur didn't know their numbers.

 

You've got to have accurate numbers, understand what the numbers mean and know how to utilize the numbers to advance your business.

 

In my opinion, for someone like you without a business background, there is no better way to learn and understand the numbers than a MBA.

 

Accounting is called "the language of business".

 

Don't think a MBA will constrain your creativity. It won't. It'll just help you to understand the business of business. You can still be a great architect or real estate developer. A MBA will just give you some extra tools to help build your business. How to speak the language.

 

You still have to do the work to build the business, but knowledge is power. I'd rather know that not know.

Businesses fail for different reasons. As Ries touches very extensively on this in his book: knowing your numbers is very important, hence the term 'vanity metrics', one danger you definitely want to avoid.

 

However, when you start a business, it's small. For quite a while it is very easy to understand what the numbers mean, it takes a while for it to be big enough to get things more complicated.

 

The reasons in fact most business fail is because they don't understand the concept of 'agile development'. That's not just an IT term but refers to understanding the development of your products and services to cater to your customers and releasing them as soon as they reach a certain standard so that it starts making money for you and you start getting feed back. Rather than keep investing time, money and effort in something that will not succeed.

 

Businesses also fail because people don't put a structure and processes into place early on and as it grows they don't have a good handle on the next steps.

 

An MBA will not teach you any of these things, you learn these by doing and not by talking. Spending years and $$$$$ is an incredible waste. I've worked with management consultants and I can certainly tell you that your average white socks wearing sales rep has more business accumen in his little finger than any of those clipboard monkeys do. 'How to speak the language' (not mocking, I just don't know what that means) means nothing. It's waste of time, pointless.

 

The OP is likely to have his first handful of business fail within a year or so, most successful business men have had that. Part of the learning, that's how you get to be good at these things. Not by doing a course.

[Mind-Chants]

Do it man. If you are getting an opportunity in a good B-School take it. Like someone here already mentioned you will get to know things especially for a start-up. Also a MBA degree would add credibility to your start-up dream in context of people and resource. I am also planning to pursue MBA next year. Take GMAT asap.

[SethDamien]

Thanks Emilia!

 

Though I think I've already fallen to the "perfectionist trap". I haven't got it started yet due to constant revisions of my marketing media (website, magazine). And i keep trying to add to it until i feel its enough to publicize. It's been four months already since i had this idea.

 

And I agree 100% that most businesses fail w/in the first year. I'm not declaring that my business will fail, but when they do fail, as you say, it will go through changes and reinvention to adjust to the market and come out better.

 

Funny, just last week i thought about buying that book 'The Lean Startup'. Now i definitely will!

[Mind-Chants]

Reading books is ok but before you jump start, find a mentor who will guide you. If you can find a good and involved mentor, I think you can skip the MBA. Experience >>>>>> Theories

[SethDamien]

Im not surprised there are conflicting ideas here. Even mr. Google suggests two schools of thought. Professionals and Entrepeneurs are still torn up about getting an MBA.

 

Getting a MBA would yield knowledge, plus i get to build connections and network with possible clients. It saves a lot of money for me in the long run. Having a MBA also puts in a good word to lenders/investors that you are good with money.

However, getting MBA is expensive and time consuming. the energy i put in studying could be used to actual practice.

 

On the other hand, I could hire professionals who could do a better job at accounting/bookkeeping instead of being hands on and I can put all my focus on the idea itself. I could get myself out there or on web marketing to gain clients.

 

Im not completely new to the business though. I know some of the ropes already as i have handled one project, i understand what the client expects, how to juggle contractors and suppliers. Its the legal and marketing aspects im more concerned about.

 

Damn this is hard.

[SammySammy]

Businesses fail for different reasons. As Ries touches very extensively on this in his book: knowing your numbers is very important, hence the term 'vanity metrics', one danger you definitely want to avoid.

 

However, when you start a business, it's small. For quite a while it is very easy to understand what the numbers mean, it takes a while for it to be big enough to get things more complicated.

 

The reasons in fact most business fail is because they don't understand the concept of 'agile development'. That's not just an IT term but refers to understanding the development of your products and services to cater to your customers and releasing them as soon as they reach a certain standard so that it starts making money for you and you start getting feed back. Rather than keep investing time, money and effort in something that will not succeed.

 

Businesses also fail because people don't put a structure and processes into place early on and as it grows they don't have a good handle on the next steps.

 

An MBA will not teach you any of these things, you learn these by doing and not by talking. Spending years and $$$$$ is an incredible waste. I've worked with management consultants and I can certainly tell you that your average white socks wearing sales rep has more business accumen in his little finger than any of those clipboard monkeys do. 'How to speak the language' (not mocking, I just don't know what that means) means nothing. It's waste of time, pointless.

 

The OP is likely to have his first handful of business fail within a year or so, most successful business men have had that. Part of the learning, that's how you get to be good at these things. Not by doing a course.

 

He wants to be a real estate developer, something I have a little experience with being a third generation contractor/realtor.

 

He can't afford to have several projects fail when he first starts. Secondly, even small real estate development projects can be several hundred thousand dollars to several million dollars. I would suggest he know and understand the business side of things. Even if they are just the fundamentals. Accounting. Finance. Marketing. Economics. Operations. That knowledge will help him tremendously.

 

Having a MBA in the corporate world and when you're an entrepreneur is different. There's a difference between being a manager holding a clipboard and the guy or girl with their feet to the fire. As I said in my previous post, I'd rather know and understand the things you learn in a MBA than not know.

 

You're right in that a MBA doesn't teach you everything. There will be a lot of things he'll need to learn even after getting an MBA. Michael Gerber's The E-Myth talks about some of those things and helps entrepreneurs get started.

 

Without getting too personal, my mom had the bookkeeper knowledge that you suggested earlier. We had a successful family business with just that. Our business went to another level when I applied what I learned in B-school.

 

There's a substantial gap between self-taught bookkeeping knowledge and a MBA. Between learning as you go and applying what you know. A MBA is not an end all, be all. You're right. i just don't think it will hurt him.

[Mind-Chants]

Im not surprised there are conflicting ideas here. Even mr. Google suggests two schools of thought. Professionals and Entrepeneurs are still torn up about getting an MBA.

 

Im not completely new to the business though. I know some of the ropes already as i have handled one project, i understand what the client expects, how to juggle contractors and suppliers. Its the legal and marketing aspects im more concerned about.

 

Damn this is hard.

 

There is no way to know whether you made a right decision or not unless you get results. So don't think about decisions, take a decision and make it happen.

 

Earlier I mentioned about having a mentor. When you interact with your mentor, they will show you the road you need to travel. But you are going to travel the road yourself. My point is when you know which road to travel, you can access most of the things you need to travel that road like whether you need a MBA degree or not. Else you will get stranded at crossroads.

 

Though I think I've already fallen to the "perfectionist trap". I haven't got it started yet due to constant revisions of my marketing media (website, magazine). And i keep trying to add to it until i feel its enough to publicize. It's been four months already since i had this idea.

 

I have limited knowledge in Infrastructure industry. Based on the fact that it is a resource based industry, I can say marketing media is not the point where you start as a start up. There is a simple principle called Pareto Principle. It says out of 100% things you have, 20% of things are going to create 80% of the problems, rest 80% contribute to just 20% of problems. Try to find which things are going to be the 20% of your start up. Because at this stage those 20% demand your 80% time.

[SethDamien]

Thanks Mind-Chants!

 

Im leaning towards on taking a non-thesis MBA since im not really in it for the degree. Plus it lightens my load to work on the business.

 

Just a side info though. Infrastructure is different from architectural practice. For the most part, architects "sell" their designs through various media such as magazines, or via website.

Most architects also win clients through referrals and by word of mouth.

 

The practice of Architecture is not that capital intensive as many might think. More and more successful architects start from their own homes with nothing but a chock full of ideas and a high-end PC yet their design fees range from 5-10k per project.

 

In more creative professions, it's 20% effort (design) that creates 80% of the value clients pay for. For the remaining 80% effort (bidding, construction, contract documentation, permits, etc,) are just logistics and can be outsourced since they do not add value to my work.

[Mind-Chants]

I mentioned Infrastructure because in one of your previous post you mentioned about your ambition of becoming a Real estate developer.

 

If you are aiming for an architect firm, things will different. Agree to your points.

[Miss Peach]

I know people who have done both. It really depends on what you want to do with it.

 

The people I know who it benefited were in business fields like accounting. For example, in accounting it's hard to advance past a certain point without a MBA and/or CPA. In technology fields I have found having a degree is important compensation wise (because there are a lot of companies who won't look at non-degreed people or will insist they are paid less or be in junior positions). The people I know with masters in technology haven't done better or worse than saavy people with just a bachelors.

 

I only know a handful of entrepreneurs. I also spent my college days working for these people on the side as a bookkeeper so I saw a range of people running their businesses from high school grad to PHD or JD. To be honest I didn't really see any benefit to it as long as the advanced degree wasn't necessary for the field (i.e., a JD for practicing law). IMO I went to business school and I learned a lot more about it in the real world and by reading blogs and books.

 

Another thing is that most of the basics are pretty learnable on the cheap such as basic bookkeeping, marketing, etc. Most people find that once things get off the ground they start hiring or outsourcing the areas they don't like or can't do anyway. Some will focus more on getting business. Others will focus more on running things and outsource sales.

 

I also agree with the previous post. I worked in architectural firms, civil, etc. and most of the work came in through their relationships with other firms and contractors in the area.

 

One other idea I'll post. If you want (or want to try) the educational side of things without the cost, there are a lot of major universities putting their classes online to the public without the degree. You can still audit the class or find things locally to teach you the business skills you lack. IMO this would be even better because fields like construction are a lot about knowing the local codes and processes to get things through the city. Having the local connections and knowledge are helpful. The people I've found who don't have that seem to run into problems getting through inspections, getting plans approved, etc. (at least in my city).

[SethDamien]

I mentioned Infrastructure because in one of your previous post you mentioned about your ambition of becoming a Real estate developer.

 

If you are aiming for an architect firm, things will different. Agree to your points.

 

Right now i'm only focusing on the Architectural bit.

 

But yeah, you saw its uses in longer term than i did. i appreciate that!

[Tressugar]

I got my MBA and people just look at me like I'm stupid. Maybe I am because I'm not doing anything with my business degree...

 

I started my business before my degree. Both of my parents used to have their own separate business w/o any degree.

 

I think it's a waste of time and money. Go start your business. You don't need a degree to get into a business.

 

That's the one thing in life I truly regret accomplishing.