How An MBA Degree Can Help Entrepreneurs and Business Owners

A Master of Business Administration bestows various benefits upon the holder, including theoretical knowledge, real-world connections and the prestige of an alma mater. An MBA holder can use the degree to further his or her professional, social and academic aspirations. Many professionals view the MBA as a way to develop industry-relevant competency profiles for businesses.

Granted, this is no easy or cheap diploma. But the investment in time and money is worth it.

If you are an entrepreneur, seeking a master’s degree can thrust your business and personal aspirations forward, as long as you know how to cultivate the right relationships inside and outside classrooms.

1. You Understand Business Management Theory

After completing an MBA, you will understand management theory, the essential concepts underlying business planning, and what differentiates a winning strategy from a losing one.

Not to say you cannot grasp those concepts with a graduate degree, though.

The point here is that a typical MBA curriculum covers some subjects in depth, and triggers intellectual stimulation you might not have acquired otherwise, especially when the classes are taught by world-class lecturers, some of whom may be Nobel Prize winners.

2. You Learn Different Ways of Running Your Business

An MBA shows you different alternatives of running your business. Whether it is centralized or decentralized, you will fathom the pros and cons of each option. Obviously, there are as many ways of running a company as there are, say, human beings.

But the bottom line is that MBA case studies give you insight into the minds of leaders at large companies, teaching you how to replicate the successes of the winners and how to shun the mistakes of the losing companies.

3. You Make Lifelong Contacts

Don’t be shy when you enroll in an MBA class. Remember that each person in that classroom is a current or future business leader, an expert in his or her field, or an up-and-coming social entrepreneur.

Make as many contacts as you can. Reach out to others, engage a frank and relevant conversation, and make connections that could turn out to be lifelong contacts. You never know: You could parlay these personal linkups into future business or social partnerships.

CampusEnitiative brought student startup teams from across Upstate NY

4. You Can Take Your Business Global

An MBA gives you the conceptual tools and practical guidance needed to take your business global.

All of the MBA programs offered at Tulane University's Freeman School of Business has a strong emphasis in teaching intentional business and global leadership. There are multiple opportunities to study aboard to work on global projects, with required residencies and seminars in Asia, Latin America and Europe. Joint degrees are also offered at different business locations around the world through the university's international alliance program.

In today’s marketplace, international expansion is a must, especially if you operate in a field that is domestically crowded or an international market whose entry barriers are minimal or nonexistent.

5. You Can Hire The Right Talent When Needed

At some point, your business will need an influx of talent, the right talent, to grow and make money. A master’s degree provides you the framework needed to identify who you really need to hire, why you need, how to allocate staff resources properly, and how much to pay them.

This goes back to the points we discussed earlier, when we said an MBA helps you understand management concepts but also shows you various ways of running your business.

6. You Can Write A Proper Business Plan to Attract External Funding

A business plan, when properly written, can lure a potential investor. After acquiring an MBA, you will know how to pen a convincing, substantiated business plan, with a synopsis or executive summary as catchy as the last Apple or Nike commercial.

Whitman School of Management at Syracuse University focuses heavily in helping their MBA students master the art of writing a perfect business plan. The business plan is integrated in multiple core courses, allowing students participate in startup pitches, product demos and business plan competitions where they have opportunities to win money, awards and even funding from investors.

Again, you can hire an expert to write the plan for you if you don’t have an MBA or don’t know much about business planning. But having the degree gives you the knowledge…and the option to say ‘I want to write my own business plan.’

7. You Have a Professional Safety Net

If your business goals don’t materialize soon enough and you find yourself scrambling for money, you can go back to the corporate world.

With an MBA, you have job security – plain and simple, no questions asked. You will find a job and restore your financial situation, so you can go back again later to entrepreneurship if that is what you want.

8. You Could Become a Thought Leader

The intellectual rigor an MBA program requires makes most degree holders potential thought leaders in their fields. And so could you!

Irrespective of your business aspirations, you can establish yourself as an intellectual authority in a field or on a specific topic. That, again, is another source of revenue, just in case your business ventures don’t pan out.

9. Your Alumni Connections Could Help Later

Your alumni connections – those one-time classmates you kept talking to – could help boost your business needs in the medium and long terms. They could be potential customers and business partners or refer you to their own business and social contacts. Furthermore, you can hire some of your old classmates, which is a smart move financially and operationally because you know them already and, we are sure, they will ask you a certain level of compensation that will not break your bank.

10.  You Can Build a Solid Online Presence

You can translate your web of offline connections into a strong online presence. We suggest you create personal and business accounts on the most popular social networks, such as Facebook, LinkedIn and Twitter.

Actively participate in activities that your alma mater and alumni association periodically post.

Final Word

An MBA opens the gateways of financial and social success. The degree helps you improve your business operations, providing you insight and tools you need to make money in the long term.

If you don’t have time or money to take a full-course MBA degree, look for alternatives, such as a Management Certificate, an Executive MBA or management courses specifically tailored for busy entrepreneurs and professionals. Remember, an MBA like any other degree programs are designed to help students develop new knowledge, but its how you acquire and use that knowledge that will separate you from your peers.