MBA (Masters Of Business Administration)
An MBA, or a Masters of Business Administration, aka “Business School” is a graduate school degree designed to develop skills in business, finance, and management.
All MBA programs are structured slightly differently, but tend to include the following coursework:
- Accounting
- Economics
- Marketing
- Operations
- And some number of courses (aka “electives”) you can pick that are more specific to your interests and desires.
What type of individual usually gets this degree?
- People who wish to learn about business, management, finance, etc. material.
- Individuals looking for a career change into industries like business, finance, consulting, etc.
- Those who wish to have a clearer path to senior roles at their company.
- Some companies only promote their employees to senior positions if they have an MBA.
- Those looking to build a network amongst business and finance professionals.
Necessary things to know about an MBA:
How long does it take to complete?
Typically takes two years to complete. However, some take accelerated versions that are completed in one year (not common).
What exams do I need to take before applying?
Most schools expect you to take the “GMAT” aka the Graduate Management Admission Test. Additionally, the score of this exam usually is a very important factor in admission decisions.
However, some schools allow other exams like the GRE (Graduate Record Examinations) instead.
What experience is expected from Business School applicants?
- Four year Bachelor’s Degree
- On average, 2-4 years of work experience (not always required but often is expected & helps your admissions chances)
Average cost of a Business School?
Once you add up all the expenses, a two year MBA can cost anywhere between $100k-$225k depending where you get your degree.
Excluding additional expenses like books, rent, etc: The average yearly tuition is between $30k-50k per year. However, amongst the top 15 business schools, the average tuition is above $60k (with some being close to $80k per year).
What skills are you expected to gain from an MBA program?
This program provides you with the ability to:
- Find smart and creative business solutions.
- Analyze a lot of data/information and use this information appropriately.
- Gain leadership qualities, like how to motivate and manage others.
- Gain entrepreneurial experience and skill – aka the ability to launch and run a new business.
- And gain any other skills that allow you to succeed as a business executive.
Most Common Industries and Jobs of MBA graduates:
The most common industries/jobs for MBA graduates are business, finance, or management roles. Some common ones include:
MBA graduates typically get paid more and enter a company at a slightly more senior position than someone that is also entry-level, but only has an undergraduate degree.
What are some challenges of doing an MBA program?
- Expensive – if your employer (or someone else) isn’t paying for your degree, it can be difficult to take (usually) two years without a salary and need to pay tuition.
- Time Commitment – They usually take two years, or at least one year. Not everyone can easily take this amount of time off from work.
- Competitive – Not all MBAs are created equal; it is very competitive to get into a strong program, and stand out amongst the crowd (both when you apply, and while you are looking for a job and competing with other MBA graduates).
What are some benefits of doing an MBA program?
- Build strong relationships – arguably the largest value of an MBA is the networking. You learn and grow with future business leaders of the world.
- Learn business and entrepreneurship skills from brilliant business minds – besides coursework, there are often guest speakers throughout an MBA program who have run successful businesses.
- Increase your business credibility – people often assume you are more educated and experienced in business, management, and leadership after getting an MBA.
- Increase communication skills – since you are networking a lot during an MBA, you become a stronger communicator.
- Broadens your career opportunities – many jobs are available to you after completing an MBA and often times you enter your new job at a more senior position than you would otherwise, without an MBA degree.
- A nice break from the grind of work – sometimes people are a bit tired or burned out from working and going back to school to get an MBA is a nice change of pace.
Typical Salary of first-year graduate?
This figure varies greatly depending on the industry the graduate chooses to work in. But the average salary for a first year MBA graduate is about $110k according to AllBusinessSchools.com.
Should I get an MBA degree?
If you believe an MBA degree can help you advance your career, you want to build a business/finance network, or you want to have the opportunity to learn about business and management, you should consider looking further into an MBA.
The most common “concerns” people have are (a) the cost of tuition + other expenses and (b) the time it takes to complete an MBA. However, despite this, an MBA provides a fantastic opportunity to grow, build your resume/credibility, meet influential business people and get back to school for a bit.