Why Starting an LLC as a Fractional Consultant May Outweigh Pursuing an MBA

Last week I got a text from my good friend and mentor in deep thinking Steve Blexrud who had a cathartic thought about Fractional. His catharsis was to the effect of an LLC is just as good, if not better, than an MBA these days. Thank you Steve.

It's true that when considering a big career shift, many professionals weigh the idea of going back to school for an MBA. An MBA is a well-trodden path, offering credibility, theoretical business knowledge, and networking opportunities. However, there’s another option that could deliver even greater returns: starting your own LLC as a fractional professional. Here’s why investing in your own business, rather than in a degree, may be the key to your professional growth and freedom.

1. Real-World Learning vs. Theoretical Knowledge

?Starting an LLC: Building your own fractional consulting practice gives you hands-on experience. From business planning and budgeting to client acquisition and service delivery, you’re learning every aspect of running a business. Each client project or sales call provides real-world lessons, many of which can’t be replicated in a classroom.

?Pursuing an MBA: While an MBA program teaches valuable concepts, the knowledge is often theoretical. The case studies and group projects are excellent practice but lack the immediacy and stakes of running a real business. An MBA program is good preparation, but it can’t replace the actual doing.

2. Immediate Return on Investment

?Starting an LLC: From the moment you land your first client, you’re generating revenue. Your time and effort translate directly into income, which goes straight back into your pocket or business growth. Plus, many expenses can be tax-deductible, so you’re learning to be smart about finances and potentially reducing your tax burden.

?Pursuing an MBA: An MBA is a significant upfront expense, with tuition costs that can reach six figures. For the duration of the program, there’s no revenue generation, and many MBA graduates don’t see a clear return on their investment for years, if ever.

3. Building a Personal Brand Instead of a Degree Title

?Starting an LLC: As a fractional consultant, your name is your brand. Every client engagement is an opportunity to showcase your expertise, style, and the unique value you bring to the table. Building your own brand can lead to greater autonomy, marketability, and professional fulfillment.

?Pursuing an MBA: While an MBA from a prestigious school can open doors, it’s still a credential among many. A degree doesn’t fully communicate who you are or what you’ve achieved. Your LLC, on the other hand, serves as a direct reflection of your skills and success.

4. Freedom and Flexibility

?Starting an LLC: Owning a fractional business lets you set your own schedule and choose your clients, creating a tailored career that aligns with your life goals. You gain the flexibility to grow your business at a pace that suits you and to pursue projects that align with your values.

?Pursuing an MBA: MBA programs are demanding, and once you complete the program, the post-MBA career path often leads to demanding corporate roles that can limit freedom. By the time you’re ready to consider entrepreneurship, you may have family or financial obligations that make the leap harder.

5. Network Through Client Work Instead of a Classroom

?Starting an LLC: Every client and professional connection made through your LLC becomes part of your real-world network. You’re not just working on theoretical cases but solving real problems for real people, which builds trust and reputation. Plus, the clients you serve become your advocates and references.

?Pursuing an MBA: Business schools are famous for their networks, but they tend to be confined to the same industry or alumni circle. In your own business, your network is as broad as the industries you serve, creating more diverse and often more practical connections.

6. Developing an Entrepreneurial Mindset vs. Employee Mindset

?Starting an LLC: Running a business builds the essential skill of resilience, a must for any fractional consultant. You learn to adapt, take risks, and pivot quickly—skills that make you a sought-after problem solver. You’re trained to think like an entrepreneur, which is invaluable for today’s business landscape.

?Pursuing an MBA: MBA programs, though increasingly incorporating entrepreneurship, still prepare many students to fit into traditional corporate structures. While you may learn valuable frameworks, the confidence and mindset gained from solving your own business challenges are unique to entrepreneurship.

7. Owning an Asset, Not Just a Degree

?Starting an LLC: When you start an LLC, you’re building a business, a tangible asset that could potentially be sold or transitioned. It’s something you own, something with intrinsic value that could support you or even fund your retirement.

?Pursuing an MBA: An MBA is an educational credential. It can boost your resume, but it doesn’t hold any direct resale value. Your business, on the other hand, has the potential to generate passive income, build equity, and perhaps become a legacy.

Final Thoughts

An MBA can provide valuable skills and access to networks, but for many, the faster, more practical route is to invest in their own business. Starting your LLC as a fractional consultant lets you turn every effort into an opportunity for income, growth, and freedom. It’s a chance to build something tangible, learn invaluable business skills, and take control of your career on your terms.

or professionals ready to embrace independence and self-sovereignty, launching an LLC as a Fractional consultant can be an incredibly rewarding choice. While both an LLC and an MBA can be valuable, and learning something new always brings returns, life ultimately comes down to making choices. Only you can decide which path is best for you.

I hope this sheds some light on your journey. In any case, don’t sit still—take action and make the most of the opportunities ahead.

You can get started on your Fractional path right here. https://voyageur-university.com

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