Elon Musk is Wrong. Here’s the Four Best Reasons to Get Your MBA
One of my internship students asked me to explain the benefits of an MBA, and earning a higher income wasn’t on my list. Later, after a breakout session, almost all of the groups wanted to know more about getting an MBA so I scrapped my lesson plan and spent the whole class answering questions about the value of getting an MBA. In this article, I will share with you the four best reasons to get your MBA and why Elon Musk is wrong.
Higher earnings did not make my top reasons because it is not a guarantee that you will automatically make more income after completing your MBA. Typically in industry, you are paid based on your experience and not just your level of education. It’s really up to you to create a career path that uses your MBA so that you can make higher earnings.
These are the top four best reasons for you to get your MBA:
#1: It’s Free or Almost Free
An increasing number of employers are offering tuition reimbursement in which they will help pay for your graduate degree. This month, Target announced that they fund advanced degrees for both part-time and full-time employees up to $10,000 a year. This is a model that has been successful for Starbucks, which partnered with ASU to offer 100% tuition coverage for undergraduate degrees.
While $10,000 a year may not cover all of your MBA tuition, it can cover a majority of it if you seek out scholarships and attend lower-cost MBA programs. For example, CSU campus Dominguez Hills has an accredited online MBA program which can be completed in 18 months and under $20,000.
Some employers do not offer a formal tuition reimbursement program but would consider paying for your MBA as part of an employment package or a career development plan. Some companies will opt to reimburse your tuition cost in smaller chunks (i.e. 20%) over a number years that you work for their company to ensure that they get value. Often, this is part of a negotiation between you and the employer.
#2 Your Career Path Requires an MBA
Some professions or jobs require an MBA. When I graduated college I wanted to be a management consultant and realized that an MBA would greatly increase my chances of success. Today, I am an independent strategic consultant and an adjunct professor, and both jobs require an MBA degree.
Some companies have a strong preference for MBA’s to work on their senior staff and will not seriously consider candidates without an advanced degree. My advice is to open a direct dialogue with your employer and ask for a career path. By doing this, you are letting your employer know your intentions to grow into a higher or larger role in the company. Good employers will assist you in understanding what requirements you’ll need to have to advance in the company. This conversation can be a little tricky to navigate but is an important part of your planning. I suggest having this conversation as part of your annual performance review.
#3 Personal Development & Fulfillment Without Creating Debt
Intrinsic motivation is one of the best reasons to get an advanced degree. More than ever, people are taking online courses to gain knowledge and up their job-ready skills. If you are someone who loves to learn and has the financial means to complete an MBA with little to no debt it can be extremely fulfilling.
Learning-inclined individuals have more online choices than ever before. You can get a credential in almost anything at this point. But if you are spending a significant amount of your time working on credential programs it could make sense to pivot your time into an organized MBA program that has the potential for a better ROI down the road.
If you decide to pursue an MBA for personal reasons, you should not accrue personal debt. Perhaps you are lucky enough to have someone to sponsor your degree or maybe you can afford to complete an MBA and pay for it as you go. No amount of personal fulfillment is worth taking on massive loads of student loan debt.
#4 You‘re a Successful Entrepreneur (Elon Musk is Wrong)
“I think there might be too many M.B.A.s running companies,” the Tesla Inc. chief executive said. “There’s the M.B.A.-ization of America, which I think is maybe not that great. There should be more focus on the product or service itself, less time on board meetings, less time on financials.”
Less time on financials? Yikes!!
I started my MBA while owning and operating a large manufacturing company in the computer peripheral industry. The company was generating over $100 million in revenue and I had hundreds of employees. While my grit and determination helped me build that company, it was my knowledge gained from MBA case studies that made it profitable.
MBA Case studies fascinate me because each one tells the story of a company’s growth and how they handle the inevitable obstacles along the way. Reading about what executives did wrong helped me just as much as learning what they did right. For many entrepreneurs, studying other companies help them run their own.
Did you know that Amazon almost went bankrupt in 2001? Most people think that Amazon has always been successful and that’s simply not true. Elon and many entrepreneurs undervalue the hard work of strategy to help a company stay relevant and profitable.
Entrepreneurs often don’t know what they don’t know. An MBA will teach you what you need to know in an environment with like-minded leaders.
Takeaways
While higher earnings can be a byproduct of getting your MBA it isn’t guaranteed. If you want to pursue your MBA and get the best outcome it should be an intentional part of your career or personal path.
Joy Griffin is an award-winning entrepreneur educator dedicated to helping Gen Y and Z Succeed.
