CEOs to B-Schools: ‘You’re Out of Touch’

6 Ways An MBA Helps You Become A Better Entrepreneur

Oil and water. Cats and dogs. Soda and pop rocks. None of these mix all that well together (or so I’m told). As clichés go, neither do MBAs and entrepreneurs.

We’ve all heard the jokes: Entrepreneurs shoot first, shoot second, shoot third, and then ask questions, burning valuable cash (and bridges) as they go along. And MBAs? Well, they shy away from the heavy lifting, favoring spreadsheets, PowerPoints, and memos (that usually codify common sense). Yes, entrepreneurs supposedly leap without looking and MBAs point without producing. Pinstripes versus hoodies. Warp speed versus snail’s pace. Garage versus country club. Hipster cool versus huckster flash. You wonder if anything could bridge the gap between these two?

But what if MBAs and entrepreneurship were more like chocolate and peanut butter? What if an MBA could actually prepare an entrepreneur to launch a more durable startup? Suspend your disbelief for a second. We all know how entrepreneurs operate. An idea pops and they need to act. ‘The window is small and the market is ripe,’ they say. ‘We have to seize the moment. The system won’t know what hit it!’ That may be true, but it takes more than an idea to usurp a market. Even if they launch, it takes more than a superior product to stay solvent. Maybe, just maybe, investing some time in business school isn’t a bad idea. And there’s no shame in earning your first million when you’re 30 instead of 28.

This week, the Bentley University’s Graduate School of Business outlined six ways that an MBA can benefit a budding entrepreneur. And they make a pretty compelling argument about the value of trial-and-error, mastering the fundamentals, and making friends in high places. Here are some of their arguments for entrepreneurs to enroll in an MBA program:

Learn Business Fundamentals: “Business school requires students to master a wide scope of skill necessary to operate a venture from end to end. While not impossible tasks for the MBA-less, the logistics of building a team, balancing a budget, reviewing contracts, understanding term sheets etc. will be executed much more easily and efficiently for the business school graduate….

“I don’t think I would have the same level of understanding of term-sheets and early stage deals I do today if I hadn’t been sitting in those classes, running through the simulations and crunching the numbers myself,” said ThriveHive founder and MIT Sloan grad Max Faingezicht.

Leadership Development: “Business school produces expert managers who are trained to build a team, oversee operations, and communicate effectively, not only for an early stage startup, but for the long-term. An MBA turns the “idea guy” into a CEO, and this can be the difference between fleeting success and a sustainable enterprise.”
Learn to Fail: “Business school provides a forum to fail which doesn’t result in financial ruin. You can experiment, explore business opportunities, test ideas and experience the outcomes without consequence. Why not make mistakes when you can afford to do so? You gain all the knowledge, lessons, and insights without the cost and can apply this wisdom to build a better business.”
Develop a Network: “Business school gives you access to a diverse and dynamic talent pool that can be an invaluable resource during your career as an entrepreneur. Not only are you likely to meet a potential business partner, but also the future decision-makers at global companies, venture capital firms, or CEOs of their own successful startups. This network can be leveraged for guidance, industry knowledge, sales leads, introductions to potentials hires, partnership opportunities…the list goes on.

Beyond your fellow students, [faculty]… can be instrumental in preparing you to start your own venture, guiding you through the process and connecting with you with influential people.”

For additional reasons (and greater detail on the arguments above), click on the Bostinno link below.

Source: Bostinno