Is it a good Idea to start a Business while doing an MBA?

If you had realized that the objective of joining an MBA program is to learn the management fundamentals that are required to start  and build a business, then list out Business Schools that has the ecosystem, and support for Entrepreneurship, and pick the best. In other cases, it can be challenging, especially when your peers have completely different post-MBA goals. So what are the pros and cons of starting a Business while doing an MBA


Pros

1) Access to Entrepreneurial Eco-System

As an alumnus, you can access the Business School Entrepreneurship eco-system but it is a completely different experience when you have a group of like-minded people from the same class pursuing the goals of Entrepreneurship, and building something of value, and lasting impact. With the support of professors, peers, and an Entrepreneurship friendly curriculum, students can build the foundation for a sustainable Business.

2) Fail Fast

The pressure to succeed after an MBA, especially from a prestigious school can be 10x more than the time when you are in school.  Starting a Business while doing an MBA can give you the confidence to take some daring risks that would be tough to take after you complete the program. For one, you have the support of your peers, and like-minded Entrepreneurs in the school, but most importantly, you can apply whatever you are learning immediately to the Business. Entrepreneurs will develop the skills to pivot after small failures – a skill that is essential to fine-tune Business Idea, and find a market to serve.

3) Access to VCs

A major motivation for Entrepreneurial students to be part of an MBA is access to Venture Capitalists. It is true - when you are an MBA from a top school or from an Entrepreneurial school, alumni, who might be Venture Capitalists will start noticing your emails, and calls, and accept your request for a meeting. For start-ups without any clout, the uniqueness of the idea, and the ability to capture market share, will drive VCs decision to give an appointment.

Cons

1) High Stress

Starting a Business either in college or at any time in life can be stressful. It requires laser focus and some unbelievable sacrifices. Relationships – both professional and personal will suffer if an MBA student is not good at time management. With the required courses in an MBA, and the attention required for a Business, sleep deprivation will be a norm for a year or two, and if the students are lucky to find the momentum with the Business, it can extend to another 2 or 3 years or until the Business has enough cash flow to build a team.

2) Opportunity Cost

No matter how much you hide it, 99% of Businesses fail and with a high paying Finance and Consulting job as an alternative, the opportunity cost can seem a little high. Business Schools have yet to put a dollar to the ‘learning experience’ that an MBA earn while starting a Business.

3) Less Networking

Networking is an integral part of the Business School experience but with a Business to manage, the travel and meeting requirements of a start-up, and the necessity to maintain a median grade during an MBA program, Entrepreneurial MBA students are left with no other choice but to skip networking events with peers that are essential to build lasting relationships.