Real Skills Learned in Management Consulting & Entrepreneurship
I am in between accepting an offer from a management consulting firm and starting a venture on my own.This decision is killing me because everybody tells me to start a business AFTER working in consulting for a couple of years. Yet, I find this very unrealistic because I think a couple years down the road I might have family and will not be in the mood to take the risk to start a company.
OK, here are my questions. After 2-3 years in consulting, what are the top 5 skills you learn? Are they worth the time investment and do they help with founding a company?
Major flaw in your post = worried about having a family.
Could you disregard my rationale and answer the questions please?
honestly it seems like you don't have enough faith in your business idea if you can't choose between one or the other. if you strongly believe the business is going to be successful why would you go work your ass off at some consulting firm that pays you $40/hr (less if you work over 40+ hours/week) and charges them $100+/hr for your hardwork?
bottom line if you strongly believe ur company is gonna be successful now then start it up
if you're on the fence, try applying to the jobs that have less hours (i.e. government consulting) and start the company up on the side
if you have no faith in the company accept the job and hopefully you'll think of a new business or have more confidence in your business 2-3 years down the road
Hmm, can we get back to the specific skills people get out of consulting. Anybody? All I always hear is really broad stuff such as "understanding different industries", but I can get this by reading WSJ....
I'll respond assuming your offer is to a top-tier firm.
On the obvious end of the spectrum: Excel, Powerpoint, time management, general project management, etc.
Perhaps more relevant to you: business finance, marketing, organization (business, not personal), influencing, ability to work hard, structured thinking and communication, etc.
There are dozens of skills and areas of knowledge that you can develop with a management consulting firm. Many, if not most, are very relevant to being able to start your own business. That being said, I think uPhone is right on the money. If you are really confident in your business then this really shouldn't even be a question. There is no set definition of the skillset that makes a successful entrepreneur and I would say that you'd get a lot further by actually going and starting a company than by consulting established large corporations.
Does Management Consulting Give Practical Entrepreneurial Skills? (Originally Posted: 09/06/2010)
Hey Guys,
So I'm a rising junior at Princeton and this summer I've been running my own branch of a national test prep franchise. It's been pretty profitable for a first-year branch ($29500 in revenue, $12000 in personal profit, top 1% of 400 branch managers nationally) and it's taught me that I really like this sort of thing and want to run my own business at some point in the future. Next summer I'll probably be doing this same thing since the company offered me an increased revenue percentage to stay and I have some ideas for expanding: hire a dedicated marketing person and a dedicated tutor so I can take on more clients (this summer I hit a cap in what I could personally do), expand into new schools, word of mouth, etc.
Right now I'm drawn to management consulting after graduation because of the good starting salary and the exposure you get to a good variety of industries (which gives you a low-risk way to try out a lot of different things and see what you like best), not to mention its jack-of-all-trades approach.
The question I had for you guys is how much you think the skills you develop in management consulting (operations, marketing, sales, customer service, etc.) might actually translate into running your own startup. Are they practical/hands-on/versatile or are they the sort of thing that would probably only be useful in that specific field (like i-banking)?
If they do, which firms do you think would be best for this sort of thing? Or does it not vary too much from firm to firm?
Thanks!
I would say, fuck management consulting and do it yourself. You can hustle and get things done and that's huge when you're an entrepreneur. You can probably learn a ton at McKinsey or Bain; but not 1/10 of what you can starting you're own business. You're going to have to take the plunge sooner or latter, right after school is the absolute best time. With your Princeton degree and a good track record already, you'd be able to lock down some VC money pretty easily. If you're looking for some sort of "formal" program I would check out TechStars or Y Combinator start up incubators. I know a couple of guys involved with TechStars and it would be about 200x more applicable for what you want to do over McKinsey. At an MBB they're going to teach you about a matrix or some shit and how to make a power point. Start ups cant afford their services so your exposure is going to be minimal.
Hmm, I never thought about it like that. I'll have to look into incubator stuff. Great idea!
The thing I'm getting stuck on, though, is that I feel like I'm developing a pretty good entrepreneur's skillset (or will by the time I graduate), but I don't really have expertise in any specific industries (except for test prep, of course). So while I'm learning HOW to do things, I'm still stuck on the WHAT to do.
Go down to Princeton's computer science lab, or wherever the comp sci dorks hang out and buddy up with one that lives to crank out code. Buy her/him and eighth of weed or pizza (which ever their persuasion) and bang out a little website doing online test prep. So what if it blows or doesn't really go anywhere. The entreprenuerial community views failures as success. So take advantage of them while they're cheap and easy.
@ westfald
yeah, i was actually thinking of learning web design this fall, since i figure bricks-and-clicks or dot-coms are sort of "the wave of the future" and knowing how to make your own website would be invaluable.
as for doing online test prep, it's something that i know how to do, but i don't think i could do that any better than some of the other options. ivy insiders does online tutoring, which i've heard is actually really good (not worthless like you would expect), and there's another website where you take online tests and based on the ones you're missing it automatically creates a customized study plan for you, only giving you instruction and practice in the types of problems that you need work on. i'm humble enough to know when i can and can't do better.
one piece of advice i heard on another thread (originally given to someone else) is to not compete against smart people. for instance, a software startup/consulting/etc. is much more difficult than you would think because you have to compete against other smart people. the person recommended doing what his friend did, which is finding a market where all the competitors are notoriously low quality, and dominating. his friend was making bank running a beauty supply store in the ghetto. a friend of mine's parents in town actually do the exact same thing, and they're rich as well.
I think either way if you think you can make good money and have a passion for it - go for it.
That said, competing against idiots is a great business plan. I was up at a friend's lakehouse for 4th of July and he was telling us about the guy who owns the neighboring lakehouse. Guy is a Chicago cop, but owns the $.75M lakehouse because he also owns a shoe store in the ghetto of the city. Every month when gov't checks comes out he sells out of Jordan's, Air Force One's, etc.... Dude doesn't even run the store. The only time he really goes in is if a new shoes comes out sometimes he'll head over there in uniform for security.
nice comments carry on guys
I knew a guy from a top 10 school who had an offer for MBB in 2004 after graduation. He decided against it. Fast forward 6 years, he owns his own company (with no vc money), employs ~60 monkeys, and has been an ernst & young entrepreneur of the year.
@ accountingbyday
Lol that's hilarious. Totally true too. I was working at the courthouse one summer and when they got their stimulus checks everybody went out and bought Jordans.
What are some other industries that are generally poorly run?
The poverty business. Cater to the poor, you can make a lot. Avoid restaurants, they fail a lot. Bodegas make bank, if you can start a corner store conglomerate and bring economies of scale to the ghetto you could do really well.
@futurectdoc - Aren't you describing 7/11 or AMPM?
A tip I read in a business book yesterday was to take an ordinary and mundane experience, turn it into something extraordinary, and sell it at a premium. the example they used was starbucks (with its ultra-customized drinks and soothing atmosphere) vs. grabbing a "cup of joe" at the local diner. also think apple and the money it makes from taking fairly ordinary gadgets and making them cool-looking and easy to use.
another example i thought of was the luxury dry cleaner's in my hometown where good-looking valets dressed in tuxes come out to your car and pick up/deliver your dry cleaning to you.
any other examples you guys can think of?
^^^ Keep thinking man. I started a small online coupon business in undergrad (I was Comp Sci actually). We didn't get to far, but it wouldn't have gone anywhere if I hadn't teamed up with another group of guys. I'm telling meet up with some other entrepreneurial minded kids at school and just start bouncing ideas off of each other. Honestly its the best way to get the ball rolling. Don't get so heavenly minded that you're no earthly good. Keep at it and one day I'll be pestering the shit out of you trying to convince of some bullshit bond offering.
Laboriosam sunt reiciendis iusto sed. Aut tempora nulla voluptate quibusdam minima esse. Quos consequatur eveniet rerum at autem aut. Eligendi quia sit sequi sint itaque quia qui.
Dignissimos aut eligendi aut nihil alias. Aut eveniet exercitationem similique eius deserunt libero corporis.
Assumenda consectetur eligendi veniam explicabo assumenda modi quis. Quidem eos et maiores et autem sequi. Voluptate et ea debitis praesentium sed excepturi provident aut. Maxime officia aut odio voluptas minima sit. Alias est iste et ut expedita.
Omnis quidem est laudantium minima ut libero fugiat. Sit occaecati odit omnis qui omnis ea. Animi magnam ut fugit libero nihil ipsam veritatis. Et quod aperiam suscipit et qui totam.
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...