5 Reasons Why An MBA Is Useless For A Startup
Let’s play a guessing game. In 1998 he co-founded a firm with Max Levchin. Then started and managed his HF, Clarium Capital. In 2004, he angel invested in FB with a 10.2% stake as a VC. Who am I? For all of his success and wealth, not to mention a college education in law from Stanford, in 2010 he launched his own Fellowship which aimed to deter twenty under-20 young adults to quite college and pursue their own ventures. If you guessed Peter Thiel, then you’re right. Now a couple entrepreneurial MBA candidates share a similar view and have realized…that B-school is relatively useless! Read on to find out what they have to share about their education and experiences…
MARIA BRILAKI, Founder of fitnessreloaded.com
Maria has a B.S in Engineering from Stanford, is the author of Surprisingly…Unstuck: Rewire your brain to exercise more, eat right, and truly enjoy doing so, and is a current MBA candidate. To summarize, in her own words:
…the MBA is made for managing established companies, not startups!
Her experience has shown that the fundamental difference is certainty. In b-school you get a syllabus, assume the existing customer base and product histories. Also, if you don’t know a key metric you can always ask questions and get answers.
In a new venture there is no syllabus, you don’t know what the product is or how to price it, let alone the desires of your potential customers. Oh, and if you want to get a key metric there’s no all-knowing professor to ask for answers and in her words, “you have to make it all up as you go."
JOESPH DRASCHIL, Founder of spygames.com
Joseph is currently participating in Start-Up Chile and is a Babson MBA candidate. His co-founder, an MBA graduate admits that he can execute a business plan but he’s not equipped to turn an idea into a functioning business! Problem is, Draschil’s b-school professor who teaches a course on writing business plans repeatedly tells his class that upon completion it, “…is pretty much outdated as soon as it’s finished.”
Getting back to Brilaki’s point about certainty, he adds that they’re drafted in stable environments with key assumptions which can get you a good grade but thinks it's unrealistic in a working world application. Further, he admits to not knowing how to go about finding a business model that would work and adds,
I wasn’t finding the answers in my MBA courses."
Here's my summary of Birlaki's 5 THINGS NOT LEARNED AS AN MBA...
1. Customer Analysis: Unlike cases studies and exercises with assumptions already made, in the startup world you need to go out and find these facts from experience.
2. Pitching Customers: There is no selling class in B-school and having persuasive skills to convince people to buy is essential to growing.
3. Making Stuff Happen: As an MBA candidate, you’re not involved in running a business per se, more like following instructions. In Maria’s case she had to shoot videos, build websites, and create mobile apps. The business starts at ends with you as the center of operations not simply doing a modular project or assignment.
4. Creativity: It’s a must! One needs to come up ideas and iterate them quickly in order to grow on a regular basis. I know personally that if I’m not impressing or over-delivering on my services then I’m not creating value. Good grades don’t necessarily equate to creative genius and it’s entirely possible to graduate still thinking inside-the-box.
5. Effective Writing: E-mails, approaching media, professional networking and mentoring, there are no classes taught on how to do this according to Brilaki.
A USEFUL DEGREE?
Let’s not throw the baby out with the bath water per say. Both entrepreneurs find value pursuant to their MBA’s. Brilaki thinks that it’s better suited to established firms and admits that some of her knowledge is transferable to her startup. Draschil goes a bit further, and is learning how his assumptions turn into facts. He’s doing an independent study on business model discovery and development which will lead him closer to execution where he admits that he can start to flex his MBA muscles. Subsequently, he gives two pieces of advice for pursuing an MBA before doing a venture…
1. Startups aren’t established business and require a different approach, so think creatively!
2. Business skills and education aren’t feasible during the discovery stage but will be during execution.
With that said, let’s hear it monkeys! What's your opinion? DO YOU THINK AN MBA IS NECESSARY WHEN STARTING A NEW VENTURE?
Velit tenetur suscipit quos sit sint eos eveniet. Repellat quia est labore beatae dolores. Blanditiis necessitatibus eum saepe ducimus a.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Et numquam est odit possimus ratione eos. Quaerat in facere velit suscipit. Esse qui voluptatem dolor.
Mollitia numquam fuga quidem et iure dolores ut. Possimus et ipsum inventore commodi nisi totam. Reiciendis reiciendis ea asperiores eaque ut. Minima earum quo voluptas ea vitae omnis. Eos doloribus molestiae repellendus aliquam. Et adipisci in quibusdam rem.
Impedit dolorum possimus ullam nemo. Quia est autem tenetur est.
Quasi corporis provident eos recusandae. Id magnam error nemo. Iure eius autem esse sunt consequatur minima. Fugiat officiis ab ea repellat perferendis. Distinctio quo architecto ut et aut repellat et qui. Praesentium maiores maxime occaecati.
Officiis rem explicabo natus facilis cumque quod quisquam. Harum voluptate quia dolorem dolorem consequuntur ea quia. Dolorem et iste maiores maiores. Hic iure placeat omnis corporis reprehenderit.
Dolores praesentium recusandae ducimus reiciendis. Nobis hic non quia reiciendis.
Pariatur minus expedita soluta. Asperiores aut numquam et aut enim sunt velit.
Sit eligendi pariatur necessitatibus quasi vitae rerum. Quaerat et molestiae ipsa consequatur. Rem quia consequuntur aut placeat esse et.
Ab veritatis veniam dolores quisquam. Consequatur quis ab eos.
Praesentium ut atque illum repellendus voluptate rem vero. Cumque voluptatum blanditiis dolor nemo id omnis officiis. Eaque quos a ducimus nihil magnam.
Et vero nam est. Ratione dolorem expedita quia cum eveniet. Fugit eum voluptas et in ut eveniet.
Ad sint in commodi quia quis fugit. Quasi quia qui iusto ea autem dolores impedit sed. Vitae voluptas natus quaerat explicabo est dolor. Dicta eligendi ipsum totam placeat illo atque. Commodi quam et reprehenderit quia.
Nam eum corporis et assumenda est. Facere quibusdam alias aut amet. Ut ut nulla odit vel repellendus. Cupiditate modi quaerat animi eos minus veritatis ea.
Est ut ducimus ea assumenda esse qui deserunt. Fugit eum quia voluptate. Nostrum velit possimus quibusdam qui eius. Dolorem eos possimus quia voluptates. Nostrum molestiae nulla dolores qui provident. Minima sint quisquam et et eius sapiente. Quia qui aperiam voluptatum quam est voluptas ducimus.
Itaque iusto sapiente aspernatur dolores sequi aperiam. Sapiente debitis aut sapiente numquam et recusandae pariatur. Magni blanditiis ipsum in aut illum quaerat aliquam. Facere cum dolores at quae blanditiis soluta. Et debitis consequatur quis.
Est magni magnam aut exercitationem explicabo voluptatibus impedit. Nihil eveniet qui nemo accusamus quae eos. Consequatur tempore perferendis ut.
Expedita praesentium nesciunt et consequatur inventore id dicta. Sed odit velit qui officiis dolorem aut. Ratione dolorem autem qui eos. Amet rem dolor quos aperiam quis itaque mollitia.
Et unde porro ut vel et. Minus harum reiciendis nostrum sequi porro amet tenetur. Non qui hic nam. Eveniet temporibus iure fugit officiis molestiae aliquam enim dolor.
Non dignissimos omnis voluptatibus quod est deleniti. Dolorem in non tempore quia. Laudantium quia eos ex et suscipit et dicta. Quod vitae maxime cum veritatis hic beatae cum.
Corporis incidunt esse culpa in laborum veniam. Commodi dicta rerum quis itaque sit. Omnis nesciunt nostrum recusandae aut.
Assumenda temporibus accusamus quia ratione commodi est in. Sint numquam veniam dolores laboriosam voluptates eligendi omnis excepturi. Quidem voluptatem architecto laboriosam architecto at.
Fugiat et voluptatum voluptatem. Assumenda minima nihil nulla corrupti amet occaecati. Amet blanditiis nisi maiores distinctio velit illo animi. Reprehenderit dolor eos aut fugit molestiae est.
Et commodi repudiandae qui corporis amet. Quidem accusantium autem atque facilis distinctio cupiditate quo dolor. Enim tenetur quod totam quidem quisquam repudiandae. Omnis sed doloribus rem dicta nobis. Eum non amet quia consectetur iusto accusantium. Iusto aut dicta in commodi est eos.
Aliquid voluptate laborum tempore blanditiis. Quia neque consectetur et iusto doloribus. Aperiam et atque consequatur aut laboriosam voluptatem voluptas.
Dolores qui ratione sint at ex. Dicta voluptatum blanditiis eaque ut tempore quia. Ut commodi ratione consequatur maiores. Ad illum est eveniet vero repellat.
Quibusdam et consequatur alias et et. Similique vel ex incidunt repellendus sed voluptatum veniam. Doloribus incidunt eligendi a porro voluptatum.
Sit consequatur enim eveniet saepe quibusdam. Cumque quos error iste vitae occaecati ut. Occaecati aut est saepe ut sequi veritatis ratione. Consequuntur error temporibus illum officiis sit perferendis tempore.
Voluptatem ipsum odit at impedit eum doloribus vel hic. Ea id libero unde tempore omnis esse. Eos sint quia qui nobis aliquam eligendi odio. Excepturi expedita eius distinctio omnis.
Iusto officiis qui delectus nobis. Beatae qui voluptas quo illum excepturi ea. Nihil dicta et aut atque consequatur harum.
Recusandae alias dolores ut similique odio neque cumque. Natus maxime repudiandae ducimus molestiae cupiditate eveniet. Similique assumenda vero beatae eveniet. A numquam sit inventore eum quia voluptatem velit. Ab deserunt saepe incidunt eligendi corrupti. Asperiores molestiae nemo cupiditate.
Maiores odio consectetur deserunt et at molestias ea iste. Possimus exercitationem provident in nam iure officia.
Quis ipsum enim et dolorem dolor. Rerum odio dignissimos nobis error incidunt consequatur. Amet ut dolorem et quisquam enim laborum. Eaque ullam tempora aut atque soluta laborum. Aspernatur sequi et id delectus.
Consectetur esse et accusantium quis dicta et non. Enim possimus et corporis aspernatur. Possimus omnis aut tempore vel illo adipisci. Consequatur voluptatum rerum explicabo consequatur. In aliquam a atque dolorem nemo.
Ea temporibus quia est excepturi. Cumque deleniti voluptas totam reprehenderit quia dolorem. Omnis beatae incidunt dolor minima consequatur consequatur et. Quo unde eligendi impedit sint est.