MBA2595 Can You Start a Successful Business Without a College Degree?

0:00Will a higher education actually help you build a better company? Is it better just to go to college to cover your bases? Spoiler alert, no. Some of the most successful entrepreneurs in the world never went to college or they dropped out. Today, we're completely destroying the myth that higher education is a must for starting and running a business. And trust me, I got a ton of personal experience when it comes to this one.

0:26Welcome back to the$100 MBA show where I help you start, grow, and scale your business with practical business lessons. three days a week, Monday, Wednesday, Friday. Today, we are diving into the question that I get a lot, which is, can you start a successful business without a college degree? And the short answer is, of course, absolutely. Let me explain why and how you can get started without wasting years or tens of thousands, if not hundreds of thousands of dollars. Let's start with why you don't need a degree, okay? Colleges don't have a monopoly on the information you need to start a business.

1:02This is actually the origin story of the$100 MBA. 15 years ago, I thought I needed an MBA to succeed as an entrepreneur. I fell into this trap of believing that a formal education was like my only way to become great at business. I soon realized that the fundamentals of business, like sales, marketing, product validation, finance, they could be learned in a few months and not a few years. So I quit the idea of getting a traditional MBA and started the$100 MBA. to save others from the same costly mistake. I want to share what I was learning as I was building businesses along the way 15 years ago.

1:39And 15 years later, we've helped over 800 ,000 people start, grow, and scale their business through our content, through our program, through our podcasts. So my existence here at the$100 MBA is all about to give you the information you need to get started, to move on to the next stage, and then learn some more, move on to the next stage, learn some more, move on to the next stage, without costing you an arm and leg, without costing you years of your life. The second reason why you don't need a degree is higher education moves too slowly. My day job before I became a full-time entrepreneur was an educator, I was a teacher, and then I became the chair of department at the university I worked for.

2:17So I knew firsthand how institutions operate. Deals with textbooks, with publishers, with assessment bodies, they're locked for five to seven years. They make an agreement, Hey, we're going to use your curriculum. We're going to use your testing facilities or tests that are already written for the next five to seven years, meaning that what you're learning is often outdated by the time you graduate. And thirdly, this is the reality of business. Business isn't about learning for four to six years and then implementing. No, it's about what I call just-in-time learning, taking action, testing, iterating, and learning as you go.

2:57Success in business doesn't come from diplomas. It comes from doing. Customers don't care about the diploma on your wall. They care about the product and the service that you can offer. The next thing we're going to cover in this lesson is the power of taking action. If you have consumed any of our content, our podcast episodes, our videos, our courses, our programs, you know that here at the$100 MBA, we're all about encouraging you to take action. This is how we approach learning here at the$100 MBA. We have a principle called learn by doing, and that's all about encouraging our students to build their business as they learn and take action after each lesson.

3:39So if you're a student of the$100 MBA program, you know that after every lesson, we give you an action item. That action item is one step closer, something that you're building for your business so that by the end of the program, you have a business on your hands that's making money, that's helping you really start growing and scaling. So again, just to reiterate, by the end of the program, you don't just have knowledge, you have a running business. So why do we implement this methodology? Why does this work? Well, when you act on what you're learning immediately, you retain more, you adapt faster, you start seeing results sooner.

4:10Knowledge is only power when you put it to use. When you don't use it, you forget it and it's useless. Like they say, use it or lose it. But let's just take a moment to just walk through the path of going to get a college degree. I want to be clear. College isn't useless. It has its advantages. Let's go through them. The first thing is networking opportunities. Many people go to university, go to college, get MBAs so that they can connect with their peers. They can connect with mentors and have some resources, right? A lot of people, they do business with people they went to university with. The second thing that you get by going to college is personal growth.

4:46For some, the structure and experience of college helps them grow, helps them grow as a thinker, helps them grow as a problem solver. But here's the thing. These benefits aren't exclusive to college. You can build a network by just attending a couple of conferences a year, joining online communities, working in your industry, joining a program, being part of a coaching or some sort of mastermind group. I went to university and I built a stronger, bigger network in one year of entrepreneurship. Let's talk about growth. You can grow personally by reading, by taking courses, by challenging yourself through real world experiences, by, I don't know, building a business.

5:25What's the average cost of a semester of university in the U.S., for example? $10 ,000? If you took a third of that, right,$3 ,000 and started your own online business, you would learn a ton through that experience. Even if you crashed and burned and failed, you would learn a whole lot more than what you would learn in that one semester in university. I'm saying this as a former university educator, right? I've seen both sides. I know what it's worth and what it's not. College is a choice, but it's not a necessity, especially for entrepreneurs. And that leads me to my next point. I actually flat out don't recommend college for aspiring entrepreneurs.

6:01If you're 100 % committed to becoming an entrepreneur, college just might not be the best option for you. It's not the best option for your time and money. The first thing is opportunity cost. Spending four to six years in college means you're delaying your entrepreneurial journey by that much. This has a real cost, like a financial cost. Let me explain. Let's say, for example, you eventually build a business that makes a million dollars in net profit each year. So those six years you're in college is delaying you making$6 million. That's the cost of that time. Number two, the financial burden.

6:38If you live in a country like the US, college can be incredibly expensive. It costs tens of thousands, not hundreds of thousands of dollars that could be invested directly into your business. You're starting off your young, ambitious life crippled with debt. And personal debt is the enemy of financial success. Don't listen to any of these people that think that personal debt is a good idea. No, this is not real estate where you're buying an asset that generally can appreciate. You're buying a degree that doesn't appreciate in value just by having a degree. unlike a home, unlike real estate, you can't sell your degree 10 years later for profit because it appreciates.

7:15No, debt is the devil in this case, okay? Number three, there's a real world alternative. By starting your business now, you'll learn faster by building something meaningful. You'll avoid the limitations of outdated academic frameworks, okay? All that stuff we talked about earlier. With a bit of guidance from a program like the$100 BA or something else, you can really excel very quickly. There are a ton of examples of entrepreneurs that did not go to college and become wildly successful. I'm talking like Sarah Blakely, the founder of Spanx, or Richard Branson, the founder of Virgin. They didn't follow a traditional college path.

7:52They built a multi-billion dollar business through action and persistence. I mean, I can go on and on. Steve Jobs is a college dropout, so is Mark Zuckerberg. You can Google this and find a crazy long list. Listen, I know this firsthand. Becoming an entrepreneur doesn't happen in the classroom. It actually happens in the real world when you create your business. This is why I'm very big on action when we teach in our programs, in our podcasts. I can give you the steps, but you have to do the steps to become an entrepreneur. When you do, you become. So can you start a successful business without a college degree?

8:30Absolutely. Commit to learning the fundamentals like sales, marketing, product validation, finance, and we're here. We got your back. We do this here on the podcast. If you want to go deeper, of course, you can sign up for a program at 100mba.net. But whatever way you learn the basics of business, you need to implement them so that you really understand them. A willingness to take action is very important. You got to take action on what you learn, test, adapt. You need to have the courage to build your network outside of your little bubble right now. Get out there, go to conferences, go to meetups, go to events that are happening locally around you.

9:06This is a great way to get to know people who are doing interesting things that will inspire you, but also you might be able to collaborate. I can tell you firsthand every time in my last 20 years of going to a conference or going to an event or going to some sort of meetup that has other like-minded entrepreneurs. When I go to these events, I always benefit. I meet somebody interesting. I meet a a new friend. I collaborate in terms of maybe we can market each other's work, learn from them. They introduced me to somebody, something great happens. So make it a part of your habit to get out there and meet new people and build that network because no one builds a business alone.

9:45Thanks for tuning into the$100 MBA show. If you want to go deeper with me and you want to do it for absolutely nothing, just sign up to our weekly newsletter over at 100mba.net. Just sign up to any of our freebies and to be part of our newsletter. Just give your name and email address. That's all it takes. And every week I will send you an email. It's my way to coach you from afar. And I'm going to give you three assignments. Again, taking action, something to think about, something to do and something to learn every single week so that you build momentum in building, growing and scaling that business.

10:14And hey, if this episode resonates with you, share with a friend, share with somebody that you think would benefit from this. Send them a WhatsApp, send them a text message. You can just send them our website, 100mba.net. The latest episode will be right there on the homepage. I'm Omar Zinom, and I'll see you in our next episode. But until then, the key is to take action. Implement on what you learn. Thanks so much. I'll see you next time.