Do You Need an MBA to Start Your Own Business?

The short answer to this question would be: No, you’re not required to have a masters in business administration to merely found a business, but if your goal is to maximize your chances of starting a successful business, then, yes, you should strongly consider pursuing an MBA or similar business-oriented degree.

Anyone can file articles of incorporation, found an LLC, open a PayPal or other merchant account, and call themselves a “business owner.” If you want to own a business that you can be proud of, and start off with a foundation that will guarantee you the highest chance of getting past the 5-year mark that most startups don’t see, consider the following reasons why it would be wise to get an MBA first:

1. Learning How to Make a Business Plan

Never underestimate the importance of drafting a comprehensive business plan, as it can do a lot to help a business raise funding from investors in the initial stages. While earning an online MBA degree from an AACSB-accredited distance learning institution like Northeastern University, you’ll learn how to write up a convincing and professionally formatted plan that lays out exactly how your business will operate and how much money it stands to make if its goals are met. Even if you choose not to seek external funding, a business plan can be an incredibly useful reference that serves as a roadmap to keep company management on track.

2. Becoming an Expert in Business Management Theory

Although it’s possible to become a great entrepreneur through repeated trial and error, if you’d like to avoid unnecessary failures and make your very first endeavor worthwhile it would be best to become familiar with business management theory before setting out on your journey. This preparation will equip you with knowledge and skills in the areas of finance, inventory management, marketing, operating efficiency, and all other aspects that are crucial to the continuity and optimization of a company.

3. Knowing How to Hire the Right People

Finally, one of the most important precautionary measures you can take when launching a business is to make sure you’re only hiring ideal candidates. Making the single mistake of starting with the wrong team members can lead to the downfall of the entire business at worst, and at best you’ll still have less ideal results than if you would’ve practiced proper employee screening and hiring techniques, which you’ll learn during the course of earning your MBA degree.

4. Don’t Let Strict Academia Cramp Your Business Style

Some people who go to school to learn business administration wind up with a very rigid and strict approach. While there is certainly a place for that type of mentality, it’s also important to be creative and innovative. Don’t let processes and procedures stand in the way of getting things done. Choosing a distance learning (online) university is a great way to avoid the style-cramping academic environment and study with more freedom and relaxation from home.