Where should you look first to acquire funding for your startup? What strategies will you employ to grow your business? How will you manage cash flow problems? Why should your audience pay attention to your business? When should you act, and when shouldn’t you?
Business is full of questions, and entrepreneurs are expected to have the right answers if they are aiming for growth and success. Yet, plenty of business leaders don’t even know which questions to ask, let alone what answers are correct.
MBA programs teach aspiring entrepreneurs how to build businesses the right way and provide solutions and skills that they will need in their coming careers. For the following three basic reasons, you do need an MBA to succeed in building a better business.
1. More Knowledge
The goal of education in general is to enhance one’s familiarity with a subject, and business school offers the same opportunities to bolster your understanding of business-related information. Though some entrepreneurs claim business success can be obtained with confidence and instinct alone, most successful businesses rely heavily on knowledge gained through formal study.
For example, noted businesspeople Mitt Romney, Meg Whitman, Indra Nooyi, and Michael Bloomberg have all used the information they gained during their studies to find success.
As an entrepreneur, you will face dozens of complex decisions almost immediately. The more insight you have into typical business practices and structures, the more likely you are to build a business that can make money.
During your MBA program, online or on-campus, you will read case studies of businesses big and small that survived or perished, you will study various business systems and the conditions that lead them to success, and you will learn typical processes for building a business. All the knowledge you gain is directly applicable to your entrepreneurial future, and without it, you might as well be flying blind.
2. Foundational Experience
While a significant portion of an MBA program is spent copying notes and reading texts, an equally large part is garnering active experiences of business practices. MBA programs tend to include dozens of hands-on projects that force students to apply the knowledge they are gaining in relatively risk-free environments.
The real world is rife with threats to business stability, but practicing methods within the sandbox of business school is a way to build business muscles necessary to find success despite expected and unexpected dangers.
Instead of gambling your savings and your hard-earned funding on business strategies you don’t quite understand, you can be certain of your policies and practices by fine-tuning them in your MBA program. Using simulated systems, such as a model workforce or a virtual market, you will be able to replicate nearly all the variables facing your future business and develop the strategy most likely to bring you success.
Additionally, your experiences handling diverse scenarios paired with your extensive knowledge of business systems will help you overcome any obstacles that might prevent you from building a strong, secure business.
3. Valuable Connections
Even in entrepreneurship, success might not hinge on what you know but rather whom you know. An entrepreneur’s network is integral in helping him or her find funding, acquire talent, make partnerships, establish audiences, and generally achieve success.
Although some network-building can occur in the real-world, MBA programs offer ample opportunities for students to make connections with leading professionals and influencers dramatically expanding their networks with especially powerful people.
As long as you reach out to the most valuable members of your network on a regular basis, you can use them for help any time during your future career ― including when you take the first steps toward building your business.
Even if you are certain your business idea is a slam-dunk, even if you have enough savings you get your business started, you should seriously consider putting your entrepreneurial plans on hold and completing an MBA program.
Far from being a meaningless piece of paper, an MBA prepares a businessperson for business leadership by instructing that student in business concepts, coaching the student through business practices, and uniting future business leaders into a durable network. With these crucial building blocks at its foundation, your business will stand a better chance of reaching success.