Many people ask the $500 Millionaire if College or Business school is a good option. The $500 Millionaire has a very interesting outlook on furthering education. According to the $500 Millionaire, Colleges and Business Schools do NOT create Successful people; they just accept them…then take credit for them.
In today’s society people are doing whatever they can to keep up with the economy. Sometime the $500 Millionaire will even suggest some people to go to the military if that person lacks discipline (https://500dollarmillionaire.wordpress.com/2012/10/15/how-the-snooze-button-will-stop-your-success-2/). Going to College, 10-20 years ago gave you a pretty good shot of landing a decent job. It was, still is, one of the most embarrassing downgrades of the “American Dream” Work hard in Grade School, Get into a good college, get a job, and your life is complete. WHAT!?!?!
The $500 Millionaire thinks that college is a great growing period for young adults. It gives them a chance to go from living off of mom and dad, to being able to make their own decision, while still living off of mom and dad. It is like a crash course to life while still having that safety net to fall back on. If you are asking if college is a good thing for people to go through, undergrad, yes. Is it a good investment, not at all. The $500 Millionaire does not feel college should be used as an investment as much as a platform to get you ready for the real world. If you think College is tough, wait until you lose that safety net.
Now post-grad is a whole other story. The only reason $500 Millionaire would suggest you go into any type of post grad is if it is absolutely required in order to enter your field of choice (i.e. Doctor or Lawyer) The biggest mistake the $500 Millionaire sees people doing is going back to business school. It is not shocking to see that people feel this is the answer. It is not taught to us by the education system that it is a good option. Most people will go back with the thought that they will get a better job because their name and resume goes on the top of the pile. So let me get this straight, you are willing to spend over $100K to get your name on the top of the pile? Please do not get me wrong, there is some valuable aspects of an MBA but the problem is the times are changing and the MBA is becoming more and more a waste of money and most importantly, time.
Business schools came to existence back in the Industrial Revolution when management of people was needed. If there was a way to get someone to manufacture an item a bit faster, that was extremely valuable. Colleges started to create this program to started teaching people how to become better managers through their business schools. Unfortunately this is not the early 1900’s. Almost 100 years later, Business schools are somewhat unnecessary in order to own and run a business. To run someone else’s business, business school could help you get the job but will not fully prepare you until you dive in feet first.
According to the $500 Millionaire, business schools are hindering most of the people who graduate. They are focusing more on reading financials and creating business plans then actual operations (which is the key to a successful business) For any Entrepreneur or “Wantreprenure” ( https://500dollarmillionaire.wordpress.com/2012/06/04/entrepreneur-vs-want-trepreneaur/) who feels business school is a good option, think again about getting into the world of entrepreneur Besides the 2 year of actual experience you could gain, let’s just look at it from an investment stand point. Let’s just take the average cost of business school which is about $60K (Some reaching $120K). If you were buying a business and wanted 10 times your ROI (Return on Investment), which is standard for most Venture Capital firms, You would have to earn $600k. Even if you came out and started working in a position that gives you 100K a year (Not likely in this economy) it would take you two years to finish the schooling, and assuming you would not gain any more debt while in undergrad or during business school, it would take you up to 8 years to get your desired return on investment.
If you have gone through business school and are offended that the $500 Millionaire feels this way then we apologies but in this society that we live in, the $500 Millionaire suggest to take a different approach. First thing is find out what you want to do. Spend as much time as need to figure this out. Then find the top 3 people in that field and make them your mentors. Follow everything they do and do whatever it takes to get them as a mentor. On top of that, there are, at MOST, 30 books you could read in order to get a full understanding of business, and then take action. Get out there and start doing it.
Starting a business is not as hard as people make it out to be. The education system and the media paints this picture like you need to find seed money or have a ton of capitol to start a business. That is just crazy. With technology today you could start a business in your home. If not your home, you can do it anywhere with internet.
If you are seriously thinking about going for an MBA, please look at it as a business investment. You have a better shot of working in a company for 2 years, reading the 30 Books, finding three mentors, and your life long earning could potentially double if not more.
Remember, business school is something that can help you read spreadsheets and create business plans but it cannot teach you the one thing you need to be successful, experience. To sit and listen to a professor who is not physically doing it right now, does not make as much sense compared to learning from someone who is in the trenches doing it every day. If you want to start a business, do not think you NEED an MBA. It can help but there is nothing you couldn’t learn on your own with just a few books. I am no longer amazed when I hear people who are extremely successful in running their own business who say they learned more in the first two years of running a business then they ever could in any school. I am also no longer amazed when I hear MBA Graduates say that the experience was good but again, they learned more in the two years of starting their business and running it than they did in class.
Keep this in mind that the school you went to did not make sure successful and will not make you successful, all they did was accept you and you better believe they will take credit for you if you succeed.
Pass this along to anyone you feel it may help in making this furthering education decision or about in start their own business. Remember, If you are good enough to get in, then you are good enough to succeed on your own.