Every worthwhile pursuit in life takes time — and if you took economics 101, you’re painfully aware of the concept of opportunity cost.
Generally, after completing your business degree, you have two options ahead of you. The first choice is to further enhance your academic achievement by obtaining a Masters In Business Administration (MBA). The other option is to be a risk-taker and start your business. Whichever choice you decide on, there are pros and cons to either of them.
If you take 2 years off from the “real world” to earn an MBA, it will take time away from the business you want to start. If you have a hot business idea that’s right for the market now, shouldn’t you jump on it? On the other hand, if you don’t already have a fully-developed professional network of savvy business associates, your business will be at a disadvantage. Earning an MBA is a fast track to forging the network you need.
Apart from your preference, the choice will also be dependent on a number of your physical circumstances. To make the most informed choice possible, you’re going to need all the guidance that you can get. So, keep reading below.
What to Do?
Now, you may ask yourself, what to do next? To answer this, consider the following questions before you decide whether to pursue an MBA or start a business:
1. Which Makes More Sense in Your Situation: Acquiring Business Loans or More Student Loans?
If you skip the MBA and go right into business, you’ll only be dealing with one additional set of new loans — your business loans. This is doable for a business with a profitable idea, but most startups fail. So be cautious about borrowing unless your business idea is truly solid.
Experts advise that borrowing for education is warranted, because education has continued to provide a positive return on investment despite dramatically rising costs.
If you pursue the MBA first, then start your business later, consider that you’re likely to have two new sets of loans you’ll need to deal with repaying: both your student loans and your business loans. This is on top of any other loans you might already be repaying. It’s possible to start a business after you’ve acquired student loans — but it’s a challenge.
However, you have options to consider:
- You could consolidate your federal loans to reduce the total monthly payments you have to pay.
- If you’re eligible, you could apply for whichever income-driven repayment plan best suits your circumstances. Choices include an Income Based Repayment (IBR) plan, an Income Contingent Repayment (ICR) plan or Pay As You Earn (PAYE) plan.
2. Which Learning Experience Would Be More Relevant to Your Situation?
Starting a business and earning an MBA both offer you the possibility for unique learning experiences.
Some people feel most confident if they have more experienced advisors available to carefully instruct and encourage them before they jump into a new project or task. Is that you? If so, you’re likely to get your money’s worth out of an MBA program. The MBA offers you a shortcut to success, because it enables you to learn quickly from the mistakes of others.
Some people just aren’t at their best in a classroom setting. They learn best by doing, failing, pivoting and trying again. Is that you? If so, launching your business might be the smarter choice.
3. Is There Any Good Reason You Couldn’t Pursue Both a Business and an MBA Simultaneously?
The last question you should consider is whether or not you could pursue both a business and an MBA at the same time. This is realistic for some business owners but not for others.
With an MBA, you won’t necessarily have to attend daily classes. Often, physical classes are only once or twice a week. Even better, because of advancements in technology, even MBA degrees are now offered by universities online. This way, you have more flexibility to serve two masters at the same time. Of course, this is given the fact that you’re also willing to face this challenge. If you’re absolutely sure that doing both at the same time is feasible for you, then why not?
- Could you buy out an existing business that earns passive income, such as a drop-shipping website or a website that sells downloadable information products? With passive income, you won’t have to do as much physical work since your income still flows through even as you sleep. So, if you can find this kind of business, it’s an excellent opportunity, too. This type of business doesn’t require your constant hands-on participation, which would free you to take time to study.
- How’s your delegating ability? It’s ideal if you’re able to delegate your most critical business tasks to trusted employees.
- Are you willing to pursue an online MBA program or a blended program that gives you the opportunity to study at your own convenience? If so, learn more about the essentials you need to know before you go head-on enrolling in an online program.
If you’re starting a business that delivers passive income, or if you’re able to easily delegate the work of the business to employees, you’re a good candidate for pursuing both a business and an MBA at the same time.
This is particularly true if you’re considering an online MBA program such as the global MBA James Cook University offers. This type of program is ideal for entrepreneurs, because it’s an accelerated program you can work on part time. A global MBA is an excellent choice for candidates who aspire to be the founders of multinational startups, because it is likely to provide you with business connections on multiple continents. You’ll learn about how business works on a global level, rather than just getting insights about how business functions in your home country.
Final Words
MBA, business, or both at once? This is a decision that requires much thoughtful deliberation. We hope the above-mentioned considerations are helpful to you as you decide whether to pursue an MBA, jump right into starting your own business, or do both. Remember that this is a choice and pursuit that should be entirely your own. In doing so, you’ll be more equipped to face whatever challenges you’re going to go through. Your choice should be one that you absolutely want to do right now.
