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Should I Go to Business School?

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Should I Go to Business School?

To MBA or Not to MBA: That Is The Question

By Codie Sanchez Baker

Do you know as Millennials we are the most educated generation? There are about 75 million of us, and 63% have a Bachelor's degree.* That's 47 million people with college degrees. That means in the US we have more millennials with college degrees, than we do people below the poverty line (43 million in US live below that line). Pretty cool progress, huh? Contrast that with this stat, 51% of Millennials say they want to own a business in the next 5 years. Sooo a cool 38 million more business owners coming our way. Are you one of those?

In the US we have more millennials with college degrees, than we do people below the poverty line.

If you are, you may be asking what my friend Reza asked me. He is a successful OR doctor and wants to open up an Urgent Care and provide better healthcare in Hawaii. He's just one of the good guys. But he was pretty honest in saying he'd never studied business. So his question, "Should I go get an MBA to learn business before launching?" My initial response was pretty intense and immediate, but then I held back and I said to myself, let's take a poll. Little experiment, shall we? So I sent this text out to my most respected business owners, major titans in their industries, successful leaders, Private Equity managers, and Venture Capital professionals. My bottom-line entry point was I only asked people who have multi-million revenue businesses or make over a million a year. I know everyone has an opinion but I'm only interested in the ones that have killed it. 

 

Here's what the killers have to say:

Out of the business people I asked, want to be blown away on one stat in particular? Only one of them said they think business school is worth it, instead of getting the experience through actually building businesses. (Now I caveat that with I have multiple friends who said business school is a a yes too via a Facebook post here so see the flip side of the coin).

Only one of them said they think business school is worth it, instead of getting the experience through actually building businesses.

Zee Ali - Bootstrapping expert & Entrepreneur

Founder, CEO of http://theZeeGroup.com  which is a 1M+ in revenue, product based marketing agency. Founder of http://theZeeAli.com , and it all started with $800 in college. 

 

Ryan Egan - founder & clothing Entrepreneur

President & Co-Founder of SLC Activewear a wholesale clothing distribution business she co-founded in 2012.

Rene Rodriguez - Online Education guru

René has been an entrepreneur for nearly two decades, having built three multi-million dollar businesses. He's an investor, CEO of a media company and an investment fund, speaker, writer, philanthropist, and cancer survivor.

Patrick Barnhill - InC 5000 Fastest growing Biz Founder

Patrick Barnhill is the founder and co-owner of Specialist ID, Inc, a leading brand/distributor of photo ID badge accessories. Specialist ID was named the #8 fastest growing company in Miami and #1,686 on the INC 5000 in 2015. 

Wendee Saunders - Telecom, energy & Franchise maven

Wendee has her hands in multiple pots, she's part of the opening up of telecom in Mexico, has real estate holdings, runs franchises in the sweets department and helps other entrepreneurs achieve financial freedom through business.

Brian Gallary - International investment business builder

 Heads Business Consulting Group at First Trust, Formerly ran and built some of the largest asset managers domestic and international businesses.

Nely Galan -  Former President of Telemundo, Media Tycoon, Former Trump Apprentice

 

Patrick Daniel - Harvard grad, author, tech entrepreneur

A Serial Entrepreneur who graduated from Harvard, and LSE, has a blog, written a book, created an online community called Junto, studied method acting, and is one of those beautiful brains I love to run ideas by.

David Bocchi - Head of Investment Bank before 30

Head of Aegis Investment Banking Division.


IF YOU ARE SAYING BUT COME ON, I WANT AN MBA:

OK HERE'S HOW I WOULD DO IT.

But first... Do you know that if you dropped in a human from a hundred years ago to today, they would not recognize just about anything we do. From transportation, to communication, to infrastructure, it has all evolved at lightspeed pace. BUT, place that same person in a classroom today and in a classroom 100 years ago and guess what? Sh*t looks just about the same. Teacher lecturing up at the front, some sort of screen to write or project on, and students sitting like children around the campfire in front of said teacher. That model is just BEGGING to be turned on it's head. So ya, I'm with the doubters. I'm with the renegades who say if you are going to educate us Universities you better have teachers that have actually built something besides a research paper none of us want to read. I've been lucky to go to one I found huge value in (Georgetown) and partner with another SMU, who both have entrepreneurs as a major part of the equation but most schools, well they just don't.

I’m with the renegades who say if you are going to educate us, universities, you better have teachers that have actually built something besides a research paper none of us want to read.

Now before you start yelling at me as a hypocritical blasphemer of education... think about the actual cost of an MBA. "$80,000 for tuition, $40,000 boarding and books, $20,000 peripheral expenditures brings the total MBA cost to around $140,000, while the lost income brings the tab to a whopping $260,000." according to Investopedia. 

That isn't any chump change. Considering only about 8-10% of individuals in the US make over $100k a year. That's about 32 million people. So you need to be in the top 10% to even start making up for the cost of an MBA. 

Considering only about 8-10% of individuals in the US make over $100k a year. That’s about 32 million people. So you need to be in the top 10% to make up for the cost of an MBA.

here's what you need to ask yourself before packing your backpack:

 

Why are you doing it?

If you are doing it to build a better business, I'd say you are doing it wrong.  It's not that I don't believe in the power of an MBA or advanced degree, I LOVE to learn.  I love being around people who are learning.  I LOVE college campuses.  I think if you can afford it and you are going in order to pursue learning, engage with interesting humans and say that you have a degree from XYZ on your resume than you should absolutely go to school.  However, people, hermanos, amigos, do you think if you had $260,000.00 to spend on your startup and learning how to build a business by doing it, you might learn more than if you spent $260,000.00 learning business theory? People learn best by doing, not reading about doing. Think about if you read a million books on basketball, would you be Michael Jordan when you eventually picked up the basketball? Nah, sorry. You'd know all the technicalities of playing basketball while you shot airballs just like yours truly. 

If you read a million books on basketball, would you be Michael Jordan when you eventually picked up the ball? Nah, sorry. You’d know all the technicalities of playing basketball, while you shot airballs just like yours truly.

 

Can you offset the costs with money from your employer or the government?

If you can go for almost nothing through grants, scholarships, your corporation paying for it while you work (as I did), then I think it's a no brainer.  The time, in my opinion, to go to business school is while you are working a 9 to 5. You can learn, on your company's dime, still make money and give back to your company by applying those theories. They benefit because you stay longer and you benefit by learning.  Want to hear more about getting it for free?... Get my guide here

 

Does your industry necessitate it? 

If you are in an industry like mine, finance, where your degree is a door opener and almost a requisite, then an MBA may be a no brainer. If you plan on working in the corporate realm, it's also probably worth it. MBA's have the highest earning potential on average of any group and the lowest unemployment.*** However let me be crystal clear, if you are an entrepreneur, it's not only not necessary, it's you listening to your ego. You want to be able to say I went here and thus I am smart, educated, and worth it. I get it, I want that too. But here's the rub, that won't help your business succeed.  #toughlove

 

Can you get into an Ivy League?

If you can get into an Ivy or a near Ivy, your network and your resume will make it worth it. Having Yale, Harvard, Stanford, Georgetown, Columbia, etc just open doors. Whether it opens VC doors, funding doors, networking doors, that in of itself will make life easier for you, just as being born with a trust fund does.  Not fair, and doesn't necessarily mean you are going to succeed, it's just an instant respect factor. 

 

Who are your teachers? 

Less than where your school sits on the ranking list, ask them who is going to be teaching you. What are their backgrounds?  Are they all academic?  Have they built anything before?  Which graduates of theirs have built businesses and can you speak to them?  Interview these schools just like you would a new hire.

Interview these schools just like you would a new hire.

Because in fact for $260,000 you are hiring perhaps your most expensive new hire to date. 

Happy Learning,

Codie Sanchez 

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Kumar Arora - Hustling with Heart

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Kumar Arora - Hustling with Heart

Written by Codie Sanchez                                                          


Kumar Arora

Cleveland Hustles w/ Heart

TV Star, Angel Investor, Fashion Mogul and Entrepreneur Dishes His Story

If you’ve watched Lebron James, TV show Cleveland Hustles, if you are a fashion or streetwear savant, or if you play in the realm of angel investing then you probably know my friend, Kumar Arora. If you don’t know him I loved this quote from Inside business magazine on him, “Kumar Arora is cool..” They have a point. He hosts parties at hidden gems through his Black Rose Entertainment. He is a co-owner of the popular streetwear brand Ilthy, and also owns Sunglass brand Rogue eyewear which really lives up to it’s name and is doing some pioneering work with stone glasses.

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So if you see Kumar today, with companies that have millions in revenue a year, launching new products constantly, on TV and sites like Inc and Inside Biz, you might not realize that he’s had to grind just like all of us. Some of my favorite parts of this interview are him talking about how he (like many of us in 2008) couldn’t find a gig and so his counselor told him to go make one. And he made multiple.

How he analyzes a company in a way I’ve never heard any other investor contemplate, how he sets small goals which snowball into large ones, and how he systematically created his own empire based solely on the things and people he loves. Also pay attention to the part on the question he always asks in meetings, and the best way he’s ever been pitched for anything. If you are looking for seed money, a mentor, or just how to get more of what you want there are some nuggets here.

Get your popcorn ready.. and your notebook and pen out, or get with the 21st century and open your evernote file, because this guy spits some sage wisdom at us.

 

Some of the questions we dug into:

Your origin story…. What made you the man you are today, serial entrepreneur, angel investor, founder with companies that rev over $8mm annually, in numerous startups tv star on Cleveland hustles?

When did you decide you wanted to build a company as opposed to be a part of a company?

What drive keeps you going when you are burning the candle on both ends flying back and forth from LA to Cleveland, grinding on your businesses and your brand?

I’ve been struggling lately with the balance of promotion vs. creation? What do you do to balance the two?

What is the one thing you believe wholeheartedly that almost no one agrees with you on?

What are you most excited about that you are working on currently? (Spoiler alert it's a kickstarter campaign for epic sunglasses!).

Hope you enjoy our chat below as much as I did!!

To stream and subscribe on iTunes, click on the icon above, or click here. Want to hear another podcast about how to find your why and passion? — Listen to my broadcast on Girl Power Hour Radio. Here I talk about 5 steps to finding what you want and then executing.

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How To Close Multi-Million Dollar Deals

Written by Codie Sanchez Baker                                                              


Close-Multi-Million-Dollar-Deals-Codie-Sanchez.jpeg

 

Lessons from a Financier: How He’s Closed Million to Billion deals from Ireland to Saudi Arabia

Adam Sadiq - Managing Partner New World Capital Advisors

Today is a fun one. If you are interested in angel investing, startups, entrepreneurship, investments, closing big huge deals, then this is the dude for you. Adam Sadiq is Managing Partner of International private placement firm New World Capital Advisors. Which means that he goes around Europe, the Middle East and Asia and finds investment opportunities for the big boys from Private equity, to hedge funds, to real estate. Adam and I go way back to our days together at one of the world’s largest asset managers. I was heading up Latin America and Adam in Europe and the Middle East. I brought Adam on to talk to us about everything from how we sell, how to close big deals, how to get into investments and finance, how to climb the corporate ladder and how to transition from corporate America to building your own company. Below are some of my favorite quotes from Adam (by the way how much do you guys love his accent!).

 

Noteworthy soundbites:

On Youth and Inexperience: “Sometimes being 23 and knowing nothing is the best part. I like to open doors through naivety and use ignorance to find success.”

On Taking the Initiative: How he closed his first deal by buying his own plane ticket and asking for forgiveness later. “I knew if I asked permission I wouldn’t get the answer I was looking for, so I didn’t ask.”

“If I had followed the internal process I would have never closed my first $100 million dollar deal.”

Go to Markets with Dislocation: “If you are operating in conventional markets like Europe, the UK, the US, business is very systematic. If you follow the process you’ll get a share of the pie. If you start moving to emerging markets it is a different story, it is based on relationships and visibility.” ** I love this one ** working in emerging markets is a game changer.

Many relationships come to you by chance, but what you do with that relationship as a next step is what changes it all. Ultimately it can change your life.
— Adam Sadiq

Being Different: “My standpoint is to be against the grain of commoditization. I try to be ahead of the market and whenever everyone is doing one thing I try to go the other way.”

“You need to think about being niche. Not being everything to everyone.”

So without further ado I hope you enjoy this conversation with Adam Sadiq.

Ciao, 

Codie Sanchez 

 

Find Adam Sadiq Here:

Twitter: @Adam_Sadiq

IG @adamsadiq

To stream and subscribe on iTunes, click here. Want to hear another podcast about how to find your why and passion? — Listen to my broadcast on Girl Power Hour Radio. Here I talk about 5 steps to finding what you want and then executing.


CLICK THE PICTURE BELOW TO DOWNLOAD MY FREE GUIDE:

Let’s Talk Benjamins: Banking & The $$$ Side of A Business

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Let’s Talk Benjamins: Banking & The $$$ Side of A Business

Written by Codie Sanchez                                Topics: The Struggle Isn't Real


 

Talking Latino-Owned Businesses and How to Leverage Your Network…

In partnership with Chase, I spent the day in Houston speaking with hundreds of Latino business owners and professionals about the hurdles to self-starting, funding, and all around bringing in the business. That is the American dream, right? That si se puede (yes you can), be Self Made. Which happened to be the book title of as my interview subject Nely Galan (see interview here). This former Trump Apprentice, Emmy winner, President of Telemundo, author, media mogul and self-made Latina, was honest and transparent about the challenges that faced her and how she overcame them in business. If you are like me, banking, and funding is one of the most intimidating parts of business (I like these tools from Chase). We have so many ways to finance but, while you are busy working on how to bring in sales and the infrastructure of your business, it’s difficult to focus on the monetary side.

When I first started my business, ThreadsRefined, I had access to quite a bit of capital to debt mechanisms and leverage, but I chose to use a business credit card. Full disclosure, I do bank at Chase, as I only talk about items I’ve used personally. The most frequent card I’ve seen used from them is Chase Ink, click here for more on the rewards system. I’m pretty much a rewards junkie, I mean who doesn’t like free stuff?

So why did I finance that way? First, if I personally am not prepared to put my own money in my business, why should anyone else? OPM (other people’s money) is a beautifully capitalistic thing, but I like skin in the game. Don’t kid yourself if you get OPM first and fail, your reputation is seriously sullied. Free capital is never free. Second, I believe in business the reason most businesses don’t survive is that they over lever themselves, aka spend, spend, spend. They get too much capital, they pay too much instead of doing trade for items or negotiating, they don’t bootstrap, and the small costs pile up like papers in an abandoned driveway. For me to test my business I wanted to keep a keen eye to costs (aka have to pay them off each month). However, it’s important to separate your business expenses from your personal. Which is why I wanted a business credit card like Chase Ink.

OPM (other people’s money) is a beautifully capitalistic thing, but I like skin in the game. Don’t kid yourself if you get OPM first and fail, your reputation is seriously sullied. Free capital is never free.

Once we understand the funding side, the question then becomes which provider. When I am analyzing any vendor I like to think about it like a life partnership. This is someone I want to travel through time with. I want them vested in my business, I want to grow with them. I don’t want to re-learn processes and hop around for the lowest cost provider. Sometimes you get what you pay for. It all eventually goes back to the humans you engage with, even when you are choosing large providers. I loved this example. Nely Galan when she was building up her business (as the creator of the show the Swan), needed capital and to professionalize the financial side of her business. So she strutted (she does definitely strut like us Latina’s do), into her bank and looked around for someone who looked like her. She found herself a fellow Latina and now says, “A Latina banker changed everything in my business.” She’s right.

At the end of the day I have two philosophies in business;

1) Cash is king - without it you are a charity not a business

2) Networks = your net worth.

So you need some rock stars in your tribe, your own personal business board if you will.

I consider my rock stars in my tribe; my attorney, my accountant, my banker, my assistant, and my executive board. I certainly wasn’t alone among the panelists when they spoke about their tribe, check out an interview here and here with two Chase Ink users, CEO’s, and fellow change makers talking about the importance of their network. At the end of the day, keep it simple. Start with as small initial investment as you can, surround yourself with the best humans you can and focus on the cash flow.

Also – let your voice be heard! Use #ChaseNegocios for their answers and give them a follow at the sites below.

CHECK THEM OUT HERE:

www.facebook.com/chase

www.twitter.com/chaseforbiz

www.instagram.com/chase

Adelante,

Codie Sanchez

 

 

Stream and subscribe to my podcast on iTunes click here.

Want to hear a podcast about how to find your why and passion? — Listen to my broadcast on How To Follow Your Passion. Here with another business entrepreneur about how to take what fuels you and make money doing it.

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