I wanted to start a discussion about using a B-school education to help start a company.  I have no real desire for IB/MC (this could obviously change in school) and would really like to open up my own firm one day.  Does anyone out there have a similar goal of starting their own company with a b-school education?  Is this a long shot gamble to spend 100K+ (much more with opportunity cost)and not see immediate payback?  I do not live in a major market and a top school could give me exposure to a multitude of other industries, people, and areas that I was not previously familiar with.  As well, I actually think ther could be a chance to find future business partners at a top school.

Am I thinking too idealistically?  Is B-school worth it for me?

I to am an entrepreneur who is choosing to attend  a top b-school.  There are a few of us out there.  I'd say there are many reasons why an MBA can help an entrepreneur.  Here are a few.

1. Knowledge: Despite what people may say on these boards, it is possible to learn something in b-school.  My UG training is in engineering so I have little exposure to accounting / finance / marketing.  An MBA will give me a general overview of these topics so that when I am preparing my business plan / working with VC's for funding, and running my business, I will be competent.

2. A pedigree: People will listen to your ideas more if you have evidence of past success.  Acceptance to a top business program is one way to signal that you may be more likely to be successful than someone who has not made it through the b-school screening process

3. Networking: At bschool you will be in class with the future  business leaders of the world.  Plus at most top b-schools industry captains come and speak regularly at events and functions.   The average joe on the street will not have the opportunity to meet all of these people in open q and a sessions in 2 years let alone over his entire life.

4. The entire b-school experience transforms many people.  You will be surrounded by bright people who are interested in their careers and all have lofty goals.  You will have access to resources (profs, industry leaders, business plan competitions) that most entrepreneurs would kill for. 

How much is all of this worth is a great question.  Some people argue that most top b-schoolers would have been as successful without the degree.  If they were intellegent enough to make i tthrough the screening process then had they not choosen b-school they would have just applied the intellegence somewhere else and been successful.  I'm sure that this is true in some cases, but the 4 reasons I stated above should increase your chances of success. 

  A lotto ticket is much cheaper though.

Admittedly, I have a general idea of the business I want to start but I don't have a detailed plan.  Through introduction to new principles, people, etc, I am hoping to refine these ideas.  I think, for me, the best way to look at it is to look at the alternatives.  I am a person who will not be happy in life if I am always working for someone.  Personal success to me lies in the idea of creating something and leading people.  If I stay where I am, I will make a good living and support my family but i will always wonder "what if?"  In an age of ZERO job security, I feel the best skills are those that give you the ability to create for oneself. 

For me, going to B-school (even a top school) seems like a gamble, compared to law school, medical school, etc, but the possible rewards and opportunities far exceed those of other graduate schools.  If I don't go to school and I run into job troubles, I may regret not ever going.  I see very few circumstances where I might regret going back to school and investing in myself.         

I agree with you to an extent but a higher ranked school is not solely ranked higher because of recruiting stats.  An MBA at Wharton or Chicago, for example, could greatly help someone refine skills in finance by allowing the student to bounce ideas off of world-renowned professors while sitting in class with "likely" future CEOS or other startups and major corporations.  Most state universities (Darden and Terry are exceptions) have similar classes to offer but the quality of education lacks greatly.  I have found from talking with many people who attend local schools part-time or for free mainly do it to achieve an automatic pay raise or promotion.  Because most of these people are going to end up working for a local corporation for the rest of their life, how will mingling in a class do an entrepreneur any good.  I have the determination to start a company, I am just looking for the skills to take it to another level.  Even if I do decide to come back after moving away to a top 10 school for 2 years, exposure to others' ideas, a new place, and new concepts could be greatly beneficial.  As well, I'm only in my mid 20's so its difficult for me to pinpoint where I want to settle for the long run...

Sadly, for me, it may come down to top 10 or bust because its going to be so expensive.  For 100K, it needs to not only be someplace where I will be surrounded by world-class people, it needs to be a place that will raise eyebrows when I'm in their office raising money to start my company. 

Everything you said makes a lot of sense to me but I just look at it as buying an experience around great people and learning new skills along the way.  As well, my business idea may change 180 degrees while I'm there... if it does and I decide to work for someone, I've got a degree that can get me in doors. 

I think it's a bit simplistic to say that school rankings don't matter. As with many things in life, it depends. If you are planning to start a relatively small regional or local business, then a degree from top tier school may or may not matter. When I started my business we got an inital round of funding from an investor, if you don't think credentials matter to investors, you have another thing coming. When you are talking with big clients and/or suppliers, there are a certain percentage of them that credentials are very important too. Having a very strong alumni network can be especially valuable in establishing connections for your company.

Of course all of that was just having the credential of a good school, there are reasons why good schools are held in high esteem. They produce. There are always aberrations, and not everyone that comes out of those schools is a high performer, but the percentages are in your favor. This applies to Entrepreneurship too. There is a lot to be said to learning from the best, from the brightest minds in a field.

Something that many entreprenuers don't want to think about is what to do if their business doesn't go as planned. However any good business plan should include an exit strategy, you should be able to determine if your business is performing as expected. What are the trends, are you improving in the market? What is your financial situation? Going to a top school will give you a much better overall business education. It will also give you a fallback option if you need to enter industry while rethinking your business plans. On the other hand, if your business is extremely successful, your ability to lead and operate a large and growing enterprise will be critical to your continued success.

There are a lot of things to consider with business school, particularly with entreprenuership. The rankings are something you should consider, although obviously they aren't the only factor. You really should get in touch with some people at the schools you are thinking about attending. Talk to students who are interested in entreprenuership. Talk to business owners that started a company after attending the school you are interested in. Are they successful? Do they view their education from the school as an important factor in their success? A business degree is a massive decision, with serious revenue and debt implications. I doubt it would be possible to do too much research.

mbawulf
http://mbawulf.blogspot.com