is an MBA necessary to open own business?

[triple_pickle]

it's actually more than you think. Most of them just never get the publicity. Quite few guys/gals I knew from grad school are doing very well for themselves. They're not in the class of a Buffet or gates but they're raking it in. Sometimes the right niche can reap huge dividends.

that's quite possible, guys with less formal education may be willing to risk more, work for somebody, etc.  i know a chicago mba who has been "breaking even" for the last 15 years.  some years ago someone offered to buy his company for $1m but he said no as he wanted to be a "ceo"

[Big_Tymer]

nice work, whats your background (age etc) and which school are you going to?

haha, its an aacsb accredited university in texas.  not going to give out more info than that on getbig

[triple_pickle]

Sorry, don't agree with "zero percent" do some reading.

that depends on how you define "successful", i was talking about bill gates type of caliber, i am sure there are many people who do just fine with a ba degree

[benz]

I bought "The Ultimate Small Business Guide" and it was a very useful book during my first year in business.  Lots of ideas, things I might have overlooked, detail-oriented stuff.

I have an MBA also.  I found it was more of a bigger picture degree.  Yes, you learn about accounting, finance, economices, marketing, and mgmt... but nothing about sitting down and running your own thing (although that class was offerred).
IMO, the biggest advantage of the MBA was seeing sustainable competitive advantages.  Three years afer graduation, I still walk into any room and automatically just smell a few opportunities.  I talk to someone about their job - they can be a roofer, signmaker, mechanic - and my mind automatically makes connections for opportunities I can find in introducing them to someone, or some joint project.

It teaches you to smell opportunities, simply put.

You dont need to have an mba to learn all of that, just study business & economy. As for the mba, i wanted to go for one in usa, had (and maybe i still got it!) the chance and money to 2 of your finest uni's, but at the same time i was offered to visit china, and well, 4 years later im still thinking about the mba while i see dozens of chinese stuff arriving in 40 hc containers i buy every month 

Luck? Good for business? Im not sure but i know theres god protecting me, because i give credit straight from my pockets just like if i were a jew lending money to my customers haha and so far, none of them has failed (thanks god for equifax and all the companies willing to give you people's credit info).

On a final note, internet is pretty important in the success of a business these days, the cost of contacting potential customers is just the cost of having a broadband connection.

[Dreadlord]

that's quite possible, guys with less formal education may be willing to risk more, work for somebody, etc.  i know a chicago mba who has been "breaking even" for the last 15 years.  some years ago someone offered to buy his company for $1m but he said no as he wanted to be a "ceo"

Most successful people will spends a few years working for someone and then branch out on their own. The more experience/knowledge you have - the greater the likelihood that you will be able to keep the business afloat during the trial period. Most entrepreneurs fail because they lack the knowledge/fail to keep their finances in check

[calfzilla]

I think it depends on the business.  You don't need any degree but an MBA would help with some professions. 

[Wiggs]

MBA and executive MBAs are better suited for people who want to move past middle management into executive positions within large companies.  A person doesn't need one to start and/or operate a business but in would be to the owners advantage tremendously.

V/r

Wiggs

[XFACTOR]

interesting thread, would be nice to hear A23 or Xfactor perspective on this...

im hopin to get an MBA degree by the time im 30, are there any educated GB'ers on here?

  MBA in today's business world gives you a distinct advantage.  Whether running a company, owning a company, or an executive role in a company. A few things to consider
 Upon completion of an MBA (pending you excel in the program) you will be heavily recruited.  Richard School of Ivey (where I went) have companies like GE, Google, Microsoft, BCG, Bain, Deloitte  all recruiting heavily.  There is no way you could have one of these marquee companies giving you $50k signing bonus, paying you $200k a year, at 30 years old without an MBA. 

 Most importantly if your final goal is to run a large organization (CEO/Pres.) you are in a much better position to do so with an MBA.  Gives you the skills to solve real business problems right down to understanding every aspect of the financials of the business.

[XFACTOR]

I have an MBA from a tier one school. Not needed to run a biz. Might even hurt you. Lots of MBAs try to get everything "textbook right" before they launch, missing a window of opportunity that a ballsier "non MBA" might hammer into.

It'll help you with identifying sustainable comp advantage (someone said that already) as well as developing financials that'll impress angel investors or VC's enough to lend you cash.

Good post!
This is key!!  I was part of a small software company that was seeking venture capital.  We were able to write a great business plan and presented it well to the firm.  Geeting this capital was one of the most difficult, stressful things I have ever done in my life.  It just wouldn't have been possible without an MBA.  We ended up going public (also a daunting task) 5 months ago, hence all the vacations   

[Tapeworm]

that's quite possible, guys with less formal education may be willing to risk more, work for somebody, etc.  i know a chicago mba who has been "breaking even" for the last 15 years.  some years ago someone offered to buy his company for $1m but he said no as he wanted to be a "ceo"

Unlikely he wouldn't sell if he wasn't doing well.  Probably code for: I'm not going to tell you how much money I make.

[XFACTOR]

Don't I know it. VC money is tough money, and the pay-outs can almost cripple you. It's a dance with the devil.

We almost got our pharma-consult company off the ground. The business plan had finished third in a national comp in school. All we needed was VC money. Couldn't get it. Rather, couldn't get it without giving away the bank. Our biz was all IP and other intangible assets -- nothing you could put on a balance sheet. VC's saw it as too risky when it came to market cap evaluations, so they wanted huge levels of controls. Just too much to run it effectively. Shame. But, there's other ideas out there.

Did you wrap up at Ivey in the nineties, or after the tech bust? Ivey's a pretty good school, but they've been hurting in the ranks lately. That new one-year MBA isn't helping. Don't you hate how you give a B-school tens of thousands to buy a piece of their brand, only to have them prostitute it after you've graduated?

Funny you mention getting a pharma company off the ground.  My best friend that graduated with me just took a pharma company public.Did it with virtually no help too.  They are in phase 3 now and he's got 3 million shares.  Which is very generous!!  I think they are at .22 as of today so not worth much but he will be retiring in 3-4 years at 37.
I finished in 2003. For me it was a great time as there were many opps that presented themselves upon completion of my program.  Regardless of the ranking some great companies to this day recruit quite heavily out of Ivey some of the most progressive, forward thinking companies as well. The one year is not a good thing and needs to be alienated we are in agreement there.   I wish I could discuss my first case with my first company after graduating, as it was a neat venture.  That would be a bad move though as you know    

[NaturalWonder83]

u suckers are fools for going to university and studying ya lives away
college degree is not the end all be all in workm place

look at the will smith movies persuit iof happiness-he ddint have a college degreee and he goa  great job on wall st-and then they make a famous movie on his life

look at successful personal trainers-gunter peterson don have college degree

im not sayingt here anythign wrong w/ college im justs aying u can do well in life and not waste it studying and sitting in lecture halls

[XFACTOR]

u suckers are fools for going to university and studying ya lives away
college degree is not the end all be all in workm place

look at the will smith movies persuit iof happiness-he ddint have a college degreee and he goa  great job on wall st-and then they make a famous movie on his life

look at successful personal trainers-gunter peterson don have college degree

im not sayingt here anythign wrong w/ college im justs aying u can do well in life and not waste it studying and sitting in lecture halls

 Naturalwonder.  I'm not sure you know what you're talking about.  While getting an MBA you become quite involved with unique business cases and learn how how to articulate and think quick on your feet in front of a large audience. You get a significant amount of practical learning.  From a pedagogical standpoint it truly is different.

A. If I asked to to create a strategy on gaining 9% market share of let's say a very tough ERP market over a three year time frame, you couldn't do it.  You wouldn't know how to write even a high level business plan.
B. You could never get a job making 200k and have them pay you a signing bonus just to join them. 

Who is the sucker now?

[NaturalWonder83]

Naturalwonder.  I'm not sure you know what you're talking about.  While getting an MBA you become quite involved with unique business cases and learn how how to articulate and think quick on your feet in front of a large audience. You get a significant amount of practical learning.  From a pedagogical standpoint it truly is different.

A. If I asked to to create a strategy on gaining 9% market share of let's say a very tough ERP market over a three year time frame, you couldn't do it.  You wouldn't know how to write even a high level business plan.
B. You could never get a job making 200k and have them pay you a signing bonus just to join them. 

Who is the sucker now?

true...i have no idea what erp even mean...xfactor-in you opinion do u feel its possible to make a good living without more than just an associate?
i guess reason i get so fueled up about university is that i see so many slack jawed yokels out there w/ their fancy college degress and they dont know jack shit about real world...yet i see people w/ no college and they are very successful

[NaturalWonder83]

the idea of having to ahve college degree is pushed down our throats so much that im sick of it
i feel u can dow ell w/out school

i have nothjing against people who do well in life w/ colelge degress that is great but i just dont get these fools that live and die for school and feel thjeir future depend on it

[XFACTOR]

true...i have no idea what erp even mean...xfactor-in you opinion do u feel its possible to make a good living without more than just an associate?
i guess reason i get so fueled up about university is that i see so many slack jawed yokels out there w/ their fancy college degress and they dont know jack shit about real world...yet i see people w/ no college and they are very successful

Oh my god you absolutely can make money in business with or without education.  I am just stating the fact that an MBA will really help you excel and accelerate your career. 

In my eyes any education is good.  I am a constant student, therefore I read books upon books, mainly non-fiction business books.  Try a few from the harvard school of business.  Innovators Solution is a great one.

[nicky.smth]

Funny you mention getting a pharma company off the ground.  My best friend that graduated with me just took a pharma company public.Did it with virtually no help too.  They are in phase 3 now and he's got 3 million shares.  Which is very generous!!  I think they are at .22 as of today so not worth much but he will be retiring in 3-4 years at 37.
I finished in 2003. For me it was a great time as there were many opps that presented themselves upon completion of my program.  Regardless of the ranking some great companies to this day recruit quite heavily out of Ivey some of the most progressive, forward thinking companies as well. The one year is not a good thing and needs to be alienated we are in agreement there.   I wish I could discuss my first case with my first company after graduating, as it was a neat venture.  That would be a bad move though as you know    

.22 cents per share...Where does the stcok trade? OTCBB? or the Pink Sheets..

I think you friend will have to postpone his retirement if the share price stays anywhere neat 22 cents

[XFACTOR]

.22 cents per share...Where does the stcok trade? OTCBB? or the Pink Sheets..

I think you friend will have to postpone his retirement if the share price stays anywhere neat 22 cents

You don't understand the pharma business.  I said phase 3.  They aren't producing, still R&D phase.  It will hit 5-6  at a later date as it's a very unique patent.

[Camel Jockey]

Oh my god you absolutely can make money in business with or without education.  I am just stating the fact that an MBA will really help you excel and accelerate your career. 

In my eyes any education is good.  I am a constant student, therefore I read books upon books, mainly non-fiction business books.  Try a few from the harvard school of business.  Innovators Solution is a great one.

The thing is that people will think an education insn't needed because one guy out of a hundred was sucessful without it. On top of that, you've got people who're doing well with no education filling the minds of youngsters who're lazy with nonsense, such as "intuition is everything and education is nothing."

Fact is that an education, whether from the library or university, enhances your knowledge and makes you better off. Of course an MBA isn't needed to start a business. MBA is just for managers, or people in the financial fields be it accounting, finance or whatever to become executives, but of course it's damn useful for being a top level manager or executive.

[XFACTOR]

The thing is that people will think an education insn't needed because one guy out of a hundred was sucessful without it. On top of that, you've got people who're doing well with no education filling the minds of youngsters who're lazy with nonsense, such as "intuition is everything and education is nothing."

Fact is that an education, whether from the library or university, enhances your knowledge and makes you better off. Of course an MBA isn't needed to start a business. MBA is just for managers, or people in the financial fields be it accounting, finance or whatever to become executives, but of course it's damn useful for being a top level manager or executive.

Exactly.  1 out of thousand more like.  Now look at the ratio of successful MBA's in the world.
Education will always trump.

[nicky.smth]

'Nuff said. I too am mum about things post-grad. Ivey is cream of the crop top 30 in the world, in my opinion. And I think it pulls better old money and has a richer alum than the other two decent schools in Canada. My friend graduated from Ivey in 03, or 02. Last name = Lemon. Maybe you knew her.

3 million shares to himself -- how many issued? Good luck to him. Hope he treats to you and the wife to a trip to Cuba with that money!

 

[kmhphoto]

http://www.businessweek.com/magazine/content/06_12/b3976089.htm

Also, when you consider George Bush is the first US President to have one, it doesn't really make them that impressive.

[240 is Back]

http://www.businessweek.com/magazine/content/06_12/b3976089.htm

Also, when you consider George Bush is the first US President to have on, it doesn't really make them that impressive.

Our surprising research suggests that few execs who hit the very top have the degree

If you had one, you'd understand.

They just give you opportunitity awareness, and the skills to know what to do with it. 

For example - you're a photog who does great work and is well known.  The MBA would have you lying in bed every night with dozens of ideas going through your head about your own BBing media/film company.  Everyone you'd meet in the industry would be a potential client or partner.  Every BBer you do a favor for, you'd call him up for a return favor.  After 5 years, you'd have the other top 5 photogs on each continent under contract with you, and you're earning residuals and blocking out other guys.  I dunno how to describe it.  You see loopholes everywhere.  You see flaws in many things others do.  You realize everything in stores, tv, etc is about marketing and selling.

It lets you see higher level opportunities, and know what to do with them.  CEOs might not be MBAs, but they're surrounded by a team of MBAs and JDs

[kmhphoto]

If you had one, you'd understand.

They just give you opportunitity awareness, and the skills to know what to do with it. 

For example - you're a photog who does great work and is well known.  The MBA would have you lying in bed every night with dozens of ideas going through your head about your own BBing media/film company.  Everyone you'd meet in the industry would be a potential client or partner.  Every BBer you do a favor for, you'd call him up for a return favor.  After 5 years, you'd have the other top 5 photogs on each continent under contract with you, and you're earning residuals and blocking out other guys.  I dunno how to describe it.  You see loopholes everywhere.  You see flaws in many things others do.  You realize everything in stores, tv, etc is about marketing and selling.

It lets you see higher level opportunities, and know what to do with them.  CEOs might not be MBAs, but they're surrounded by a team of MBAs and JDs

The MBA doesn't give you any of that. A creative mind is responsible just as a degree in music isn't going to make you a successful songwriter.

There's no doubt that having one will get you into a middle level management position but the majority remain there.

[noworries]

  MBA in today's business world gives you a distinct advantage.  Whether running a company, owning a company, or an executive role in a company. A few things to consider
 Upon completion of an MBA (pending you excel in the program) you will be heavily recruited.  Richard School of Ivey (where I went) have companies like GE, Google, Microsoft, BCG, Bain, Deloitte  all recruiting heavily.  There is no way you could have one of these marquee companies giving you $50k signing bonus, paying you $200k a year, at 30 years old without an MBA. 

 Most importantly if your final goal is to run a large organization (CEO/Pres.) you are in a much better position to do so with an MBA.  Gives you the skills to solve real business problems right down to understanding every aspect of the financials of the business.

A MBA is not needed.  You are stating having one helps you get recruited or work for other companies which is fine but one is NOT needed to own a company.   You surround and make partners with people who have the experience and knowledge in specific fields.  Starting a company comes from creativeness.  Putting all the pieces together is something you have to do by having the best people with you.  Trying to do everything won't work on a medium to large scale.  If you plan to open a business with just you and maybe a couple other employees then you should be able to handle all the aspects related.  But if you intend to start a business with more employees and more outsourcing then you will need help regardless. 

Having a MBA may help but it is far from something you need.