Should Entrepreneurs Consider Getting an MBA?
I used to wonder if there was any value in going back to graduate school and getting an MBA. I have a professional background in Corporate Finance and believe that I have the skill set necessary to succeed in a decent MBA program.
However, in the past year or so, I've really come to change my thinking.
Here are my two reasons why I believe that pursuing an MBA is a poor choice for aspiring entrepreneurs:
Reason 1 - The degree is expensive
As someone who is particularly aggressive with personal finance, I believe that by committing cash to the degree, or by taking out loans, I delay my ability to invest in real estate or other assets significantly as I tie up my personal capital in the degree.
Further, I believe that I'll accumulate assets to invest at a slower rate for the duration of my education, and that I'll spend the years immediately following my graduation paying off student debts. I expect this would significantly delay or reduce my ability to invest in real estate for at least 5 years or so.
I don't expect the cash flows (in the form of increased annual salary) from an MBA program to net positive for at least a decade - and I believe that is far too long a payback period for an investment that could have such a huge impact on my daily life and happiness.
Reason 2 - The degree limits my thinking and narrows my career of choice.
It was relatively easy for me as a young kid with just an undergraduate degree to make the decision to quit my cushy finance gig and come work here at BiggerPockets for @Joshua Dorkin . I didn't have anything to lose! I could absolutely take a chance on work with a small company that I was a big fan of. I wonder though, if I would have had the fortitude to take that same chance were I making close to $100,000 annually as an MBA graduate from a top program.
I believe that the MBA mindset that is instilled is one which seeks the highest possible salary and the largest number of material comforts available. I tend to see many MBA acquaintances as comfortable with a relatively low level of risk, and an unwillingness to rock the boat. That's a broad generalization, but I do wonder if I would have succumbed to a similar mindset.
Anyways, I wrote about this topic briefly a few weeks ago, and I thought I'd discuss the merits of an MBA for entrepreneurs specifically. I would love to hear everyone's thoughts.
