Question:
I’m considering pursuing an MBA before starting my business. Will it really make me a better entrepreneur?
A: For me, earning an MBA made sense, especially as a military veteran using the GI Bill. An MBA will not automatically make you a better entrepreneur, but in my experience, it can provide a strong foundation, practical tools and the confidence to build and lead a company.
Here are key lessons from my experience:
- Learning the language. An MBA helps you “talk the talk” with bankers, investors and partners. Using financial and strategic terms fluently builds credibility and keeps you from being sidelined in important conversations.
- Managing the numbers without getting lost in them. In business training, accounting courses teach you to spot errors and finance courses show you how to use that information for decisions. When I was starting my beer company, keg deposits were mistakenly recorded as revenue, not once, but twice, years apart, by two different firms. Left unchecked, those errors inflated income and could have misled investors. Federal laws like the Sarbanes-Oxley Act require CEOs of public companies to share responsibility with CFOs for financial reporting accuracy — though small businesses are not bound by this the principle still applies. My advice is simple: Entrepreneurs should not solely manage their books. Pay a qualified professional to do that, but review their work each month, not only at tax time or when paperwork is due. The numbers should be used to inform strategy and decision-making, not just filed away to satisfy obligations.
- Recognizing and building the seven forms of capital. Entrepreneurs often think only about financial capital, but there are at least seven widely recognized forms: financial, human, social, intellectual, physical, natural and cultural. An MBA builds human capital, knowledge and leadership skills, and social capital, networks and mentors. With these in place, you are better equipped to recognize and manage others, from intellectual property to cultural capital that shapes customers and community. Education gives you the confidence to see opportunity across all these forms of capital, not just money.
- Committing to lifelong learning. An MBA is one option, not the only one. Leaders grow by continually investing in themselves. Community colleges and Small Business Development Centers offer excellent noncredit courses, advising and peer networks that shorten the time from idea to implementation.
For me, the MBA did not make me an entrepreneur, but it gave me tools that help me think, lead and grow. Whether you pursue a degree or not, the key is to keep learning, stay curious and surround yourself with advisers and peers who strengthen your vision.
Central Oregon Community College’s Small Business Development Center (SBDC) offers free, confidential professional business advising and a variety of low-cost courses to help entrepreneurs through the business lifecycle. Visit cocc.edu/sbdc to learn more and read testimonials.
About the Expert:
Keith Sherrill served most of his adult life in the U.S. Army, quickly rising in the ranks within the elite 75th Ranger Regiment and 160th Special Operations Aviation Regiment. Upon exiting the military, Keith applied his lessons learned and leadership to his own entrepreneurial pursuit, building an award-winning microbrewery and beer brand from the ground up. He holds an MBA from William & Mary and is a graduate of the Stanford Graduate School of Business’s Ignite program.
