6 Benefits of an MBA for Small Business Owners
Did you answer your entrepreneurial calling and start a small business? If you did, you are like thousands of other Americans who are running their entrepreneurial ventures. With so much competition in the market, what is it that can set you apart?
For some businesses, their business proposition sets them apart; for others, it’s just pure luck. However, your business proposition will not be unique forever, and your luck might run out. So, it would be ideal to have a reliable safety net. An MBA degree could be just that.
An MBA degree helps you figure out how to be a successful businessperson. It increases your knowledge and strengthens your management skills. There are new advancements in businesses every day. Professional learning and grow trucking industry with are essential to keep up with this constant innovation and changing consumer preferences.
Remember, anyone can start a business. However, only a handful of them can stand the test of time. According to a study, 20% of small businesses failed in their first year of operations, 30% in their second year, and 50% in the first five years. So, you need to be prepared; an MBA can be the most effective weapon in your arsenal. Here are six benefits of an MBA, especially for a small business owner:
Helps You Understand Business Management:
Despite popular belief, business management isn’t an easy task. It isn’t just about giving orders and sitting behind a huge desk all day. Instead, sometimes you even have to put in more than 16 hours a day into your business.
To effectively manage your business, you need to understand how companies operate. You need to know about finance, HR, marketing, sales, operations, and supply chain; getting an MBA can help you develop a more in-depth understanding of these business constituents as they are covered in great detail in MBA programs.
If you are someone who had less to no business exposure before you stepped into business, you will see that there is a world of things that you have no idea about. In this scenario, pursuing an MBA will help you understand how to build your business from the ground up. They’ll teach you how to plan and strategize and what factors you need to base your business on.
Crafts A Safety Net For You:
You probably work hard and dedicate hours of your time to your business. However, having an MBA to back you up will give you a professional safety net in case your venture doesn’t work out.
It is vital to set SMART goals for your business. When you are designing strategies, be sure to keep in mind that you are preparing for the worst but hope for the best. Having SMART – Specific, Measurable, Achievable, Reliable, and Time-bound objectives in mind will help you be more prepared in case things go south.
If you cannot break even, you’ll soon see your financial situation deteriorate faster than you imagined. A good educational background will open different job opportunities for you that will help you earn extra and dedicate that money to your hustle. Moreover, an MBA graduate has a lot of job security and high salary potential. You can finance your start-up initially through your salary.
Helps You Secure Funding For Your Business:
Securing funding is amongst the most challenging things for a start-up. In most cases, entrepreneurs and even running business owners rely on loans from banks, alternative lenders or incubators to keep their businesses afloat the first year, no matter if it’s in the trucking industry, a new restaurant or real estate. You cannot afford to launch a start-up unless you have enough savings.
You can take a loan from a friend or family member. However, friends and family are often reluctant to invest in a completely new business. The most probable solution then is to contact an investor or business incubator. An MBA will make you a more credible candidate for these third-party benefactors. You can convince them you are a low-risk investment because of your skill set and business knowledge. Moreover, being eligible for a stable job can help you gain brownie points in their eyes.
Helps You Solve Business Problems More Readily:
When you are studying for an MBA, you’ll see that you will have to study and crack hundreds of cases. Each of them will have a unique problem you must solve according to your business acumen and everything you’ve learned in your course. It helps you become a problem solver; you adopt a thinking pattern that works on looking for the best solution in case a problem arises.
Remember, all businesses face challenges, and all challenges can be faced head-on. Hence, an MBA helps you get into a problem solver mindset and start strategizing because it becomes second nature to you.
Most challenges you might face are common across all businesses; cashflow issues, under-capitalization, lack of customers, high competition, and an unreliable employee base. Many companies apply their competitors’ strategies to solve these problems successfully.
Helps You Build A Solid Network:
When pursuing an MBA, you’ll come across many people from all walks of life. Some might even have influential backgrounds to help you set up your business. You might even be in the presence of hundreds of different future leaders during your education.
Hence, be proactive and build feasible bonds with them. They might be the most viable and reliable business connections of your life.
Learn Current Business Trends:
Sitting in an MBA class will help you be part of a conversation about business trends and the evolution of business strategies. You’ll learn a world of new things and get a good grasp of current business trends, which will help you prepare for the future, so you can be at the top of your game!
You’ll be able to develop strategies that can help you thrive in the business world, and you’ll be able to do so by being consistent with the current market demands and trends.
Pursuing an MBA program will be your life’s best decision if you are a small business owner. It will open a world of possibilities for you and help you gain a deeper insight into what is essential for your business to thrive. It will help shift your frame of mind into a more proactive mindset. You’ll be able to design strategies for your business that are going to be practical and problem-solving.