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| Image by Vela |
Recently, a senior engineer at Google asked me for a reference to support his application to an MBA program. It was not the first time I’ve written such a reference, but it got me thinking about the pros and cons of engineers trundling off to business school. There’s certainly lots out there on why you should study for an MBA, but not much on why you should not study for an MBA. So, at the risk of offending my friends and colleagues with MBAs, let me give you some reasons.
I’ve never attended a business school, but this has not stopped me from starting and running companies. In my opinion, most smart, experienced engineers probably already possess the acumen they need to be successful in business. Further, there is the opportunity cost of pursuing an MBA, and finally there is the financial cost. After all, the time and money spent on an MBA could be spent building your business.
I asked my colleague why he wanted to pursue an MBA. First, he thought it would be valuable for the professional networks he would forge. He admitted that the business knowledge he thought we would gain was a secondary consideration. Second, the MBA would give him greater credibility with potential investors to secure funding to start a company.
There is no question that in business the old adage “it’s not what you know, but who you know” rings as true as ever. But is an MBA really the most efficient way to build your network? I would argue, “no”. For someone reasonably adept at plugging into social networks, both online and offline, there are countless networking alternatives to an MBA. From online social networking sites, such as LinkedIn and Google+, to offline networking events, such as your local Mobile Monday or the local Silicon Beach/Alley/Forest/etc. entrepreneurs group.
So what about credibility with investors? There’s a perception that one always needs to raise capital in order to start a company. In reality, chasing funding is often the last thing entrepreneurs should be worrying about. Capital-light businesses, such as online businesses, can often be bootstrapped using a credit card (or two).
If you’re an engineer, consider building a proof of concept to validate the idea first, and getting some real users or customers. Then, and only then, seek capital, by which time, with any luck, your business might even command a non-zero valuation. And if you're not an engineer, team up with an engineer.
Finally, ask yourself "why do you really want an MBA?" It might be because you feel that somehow you’re not ready to start a business and the MBA will prepare you. If so, my advice is, don’t procrastinate further, just do it! If you fail, just fail quickly, learn from your mistakes, and try again. The experience you gain will be worth a thousand lectures. And if you succeed, I look forward to hearing from you.