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Buy Business, Profit Now – Get MBA, Profit Later?
Recent college graduates and those contemplating the completion of their studies in the near future – specifically those majoring in business – are often torn between two disparate choices.  The question asked most often is, “Should I stay in school and earn my MBA (Master’s of Business Administration), or head out into the world and buy a business?”  There are four factors that come into play when buying a business or continuing in school – the money one needs, the amount time to be expended, the potential return on that investment, and the state of the market.  Most people who go on to do a MBA do so under rather stressful circumstances.  They work part-time at low wages, making just enough to get by while taking classes full-time.  They use up personal savings, borrow from relatives, and go into debt via student loans.  At the end of the two- or three-year process, they have a substantial educational advantage over their peers who did not take the MBA path, but they’re also that much behind the curve in the professional world.

Smart Business Owners
There is hardly any question that entering a MBA program as an existing small business owner can be advantageous.  The things you learn in the classroom can be applied immediately to the business you’re running, offering a real world laboratory environment.  Running your own business has taught you certain skills and helped exploit those you already possessed, but a MBA program can show you how to prop up your areas of weakness.  A business school is also a great place to make lifelong contacts, as well as relationships that provide near term benefits to your existing small business.  Having a MBA gives you serious credibility within your local business community, and you may even benefit financially.  Bankers are more likely to loan money to companies run by MBAs, and with slightly better terms.  Finally, a well-rounded MBA program gets you to think like an executive, helping you identify important business issues to consider and strategies to implement.

Successful Business Owners
Buying a business is not an inexpensive process.  Whether you acquire an existing company or elect to purchase a franchise opportunity, you will lay out a considerable chunk of cash.  In either case, you will need some level of financing to cover the purchase price, the cost of inventory and supplies, taxes, insurance, wages (even if you’re the only employee), lease payments on property and / or equipment, plus marketing and advertising expenses.  The same money you might sink into furthering your education can just as easily go toward buying a business, and you will see an immediate return on your investment, in the form of sales revenue.  One of the simplest ways to buy a business involves the purchase of a franchise.  All the planning has been done ahead of time by the parent corporation, with tried-and-true business methods at your fingertips showing you exactly how to operate the business in the most profitable manner possible.  And here’s the kicker – chances are, many of the people with whom you will work at the franchisor level probably have their MBAs!

Gratification Delayed Is Not Gratification Denied
A useful strategy might include the following steps:

1. Save your college money and use it to buy a business – a franchise is a great way to get started.
2. Learn from experts on how to run your business, and save up as much cash as possible.
3. A couple of years down the road, once your business is running smoothly, go back to school part-time and get a MBA.
4. Profit!

And guess what?  One of the most interesting small business opportunities around these days involves helping other business owners earn their MBAs.  A recent article in a major business publication declared there was plenty of money to be made as a MBA coach or consultant.  Now that would be an interesting business to buy!

Closing Question
How many small business owners in your area have MBAs, and did they acquire them before or after buying a business?