4 ms·

I wouldn't phrase it as a question of Good vs. Bad, but rather Necessary vs. Unnecessary. For me, it's a return-on-investment question, whether the 2 years and

by ajiang 13y ago

I wouldn't phrase it as a question of Good vs. Bad, but rather Necessary vs. Unnecessary. For me, it's a return-on-investment question, whether the 2 years and $100k+ in tuition would advance my ambitions more than 2 years of building and $100k that could go towards self-funding.

comatose_kid 13y ago
Great point. I just wanted to counter the prevailing wisdom that an MBA is not worthwhile & show how my perceptions of it changed over time. ROI: Most choices result in opportunity cost - expense and time were considerations, but the skills gained will stay with me for life.
up_and_up 13y ago
> $100k that could go towards self-funding This is not really accurate. The 100K for the MBA will likely come from financial aid which can be paid over time, maybe 6-10 years. Thus it is generally not paid with cash on hand. At the same time there is no $100k financial aid to start a company. Sometimes you can find family money or smaller personal loans, but 100K for a biz is much harder to come by and not the same as 100K of Gov backed financial aid. This is apples and oranges here... That being said, your main point re ROI stands..
- tptacek 13y ago
  The $100k of personal debt you take on to obtain an MBA is worse than startup funding: aside from the fact that most startup funding is based on equity and is never repaid, that "government backed financial aid" isn't dischargeable in bankruptcy; you are more or less going to have to pay it back no matter what.
  - mesozoic 13y ago
    That is true the terms are worse. If you can get seed funding go for it. The other thing an MBA gives you though is a pretty soft landing pad if your startup fails.
    - tptacek 13y ago
      Disagree! Lots of people have MBAs. It's not an effective differentiator. A smart, ambitious engineer can do most of the jobs an MBA normally qualifies for, so MBAs have that source of competition too. Meanwhile: your landing includes $100k of non-disposable debt. A couple years ago, I worked for a UMich MBA in a product marketing role. I remember hearing about how MBA's weren't worth getting unless you got one from a top school. But that was years ago. In 2013, even if you can pick one up from Wharton, you're still probably going to end up worse-off unless you manage to parlay the degree into a role in finance. Don't get an MBA.

by ajiang 13y ago

comatose_kid 13y ago

Great point. I just wanted to counter the prevailing wisdom that an MBA is not worthwhile & show how my perceptions of it changed over time. ROI: Most choices result in opportunity cost - expense and time were considerations, but the skills gained will stay with me for life.

up_and_up 13y ago

> $100k that could go towards self-funding This is not really accurate. The 100K for the MBA will likely come from financial aid which can be paid over time, maybe 6-10 years. Thus it is generally not paid with cash on hand. At the same time there is no $100k financial aid to start a company. Sometimes you can find family money or smaller personal loans, but 100K for a biz is much harder to come by and not the same as 100K of Gov backed financial aid. This is apples and oranges here... That being said, your main point re ROI stands..

tptacek 13y ago
The $100k of personal debt you take on to obtain an MBA is worse than startup funding: aside from the fact that most startup funding is based on equity and is never repaid, that "government backed financial aid" isn't dischargeable in bankruptcy; you are more or less going to have to pay it back no matter what.
- mesozoic 13y ago
  That is true the terms are worse. If you can get seed funding go for it. The other thing an MBA gives you though is a pretty soft landing pad if your startup fails.
  - tptacek 13y ago
    Disagree! Lots of people have MBAs. It's not an effective differentiator. A smart, ambitious engineer can do most of the jobs an MBA normally qualifies for, so MBAs have that source of competition too. Meanwhile: your landing includes $100k of non-disposable debt. A couple years ago, I worked for a UMich MBA in a product marketing role. I remember hearing about how MBA's weren't worth getting unless you got one from a top school. But that was years ago. In 2013, even if you can pick one up from Wharton, you're still probably going to end up worse-off unless you manage to parlay the degree into a role in finance. Don't get an MBA.