- Introduction
- The use of an MBA in a startup
- Why would startups prefer an MBA graduate?
- Concluding Thoughts
Introduction
Recent trends have witnessed individuals inclining more towards startups as they tend to offer more opportunities and growth when compared to large MNCs. Be it a startup or an MNC, organizations prefer hiring candidates with either an MBA degree or prior hands-on experience. So, what works better in a startup- an MBA or hands-on experience? Keep reading to find out.
Startups and the MBA hiring trend
The trend for hiring MBA graduates is significantly higher in startups. The reason being the growth-oriented and profitable approach that startups follow in their maturity stage. As the functions of the company increase concerning its growth, the requirement for qualified management professionals to handle tasks also rises. Hence, MBA graduates are hired to fulfill operational functions like business development, product management, human resources, etc.
What do startups look for in an MBA graduate?
The extensive field knowledge, lucrative degree, and familiarity with versatile businesses, management systems, and analytical skills are the prime reasons why startups prefer MBA graduates. More and more startups have inclined towards the MBA hiring trend, and here are reasons why they prefer an MBA graduate:
Market Research
Understanding the market is a crucial aspect of a successful business irrespective of its size and age. Startups can leverage various research and analytics tools such as Google Analytics, Balsamiq, Jira, Excel, Tableau, and SQL available in the industry to get an in-depth insight into the current market trends, product prices, competitors, and much more. Although the tools are handy and reliable, it requires a professional with appropriate skills to handle them and deduce valuable insights from the derived data.
That is when an MBA graduate can come into the picture. He/she would have sound knowledge on how to uncover raw data and convert it into meaningful insights that could aid in data-driven crucial decisions.
Scaling the Business Exponentially
It is every startup’s dream to evolve into a unicorn startup. A unicorn startup is a startup that reaches a valuation of 1 billion dollars. To conquer this feat, it is significant to define and design strategic business processes and create effective communication channels to promote faster and transparent communication.
MBA grads can fulfill this requirement as they are trained to map out well-defined strategies and procedures to help a company grow. With effective discussions and brainstorming sessions, one can help devise a scalable and financially feasible strategy.
For Marketing roles
Marketing is not as simple as we assume it to be. Gone are the days when it was only about promotion or advertising of a product or service. Now, it also involves complex science and analytical components like market analysis, customer acquisition, segmentation, targeting, pricing, and much more.
An MBA graduate will be the perfect resource to take up these tasks as the MBA curriculum consists of training modules and projects that deal with marketing and management. The MBA graduates are seasoned professionals who are educated to articulate and design campaigns that can maximize customer satisfaction and ROI.
Networking
One major advantage of pursuing an MBA is networking opportunities. Networking is crucial for the success of an organization as it involves marketing opportunities, and this is where startups can leverage MBA grads in their inventory.
The MBA programs provide endless networking opportunities as students meet with industry professionals, mentors, experts, and leaders in the industry. With the help of a network established during his/her MBA program, an MBA grad can build a solid foundation of influential and meaningful connections that help a startup expand its business.
Financial Planning and Management
Planning and channeling funds in the right direction is crucial for a successful startup’s growth. As a company evolves, there always remains a risk of making faulty decisions and directing funds towards the wrong path. This is why financial planning and management are vital for startups.
Fortunately, the MBA curriculum has modules related to financial planning and management. This is why startups will look for MBA graduates who can help them manage their funds and allocate them to areas that can bring maximum returns, thereby promoting the growth of the company without hampering its progress.
Effective communication
With a mountain-load of tasks at hand, startup founders often find it difficult to understand the needs of employees, communicate with them, and even manage. This situation, if left unhandled, eventually leads to business infrastructure collapsing.
This can be avoided with the help of an MBA professional. The excellent training and communication skills obtained as a result of their education can help them devise a seamless communication strategy. This can help the co-workers and the organization to communicate within themselves and externally without any misinterpretation and hindrances.
The above pointers clearly mention the areas where an MBA graduate can shine in a startup. Having said that, not all the roles in startups require an MBA. But, if acquiring skills and knowledge for acing leadership roles is your primary concern, then an MBA might be the initial step to a rewarding career.
Concluding Thoughts
Startups are always an opportunity for growth, especially the ones which have just kicked off. Although the salary might be a bit low when compared to big MNCs, you will get a chance to learn across all verticals when you work with startups post an MBA degree.
So, if you want to be a part of an entrepreneurial setup and grow along with a company, a startup might be the best place for you. Skills and knowledge are the primary factors considered for hiring across startups, and the Online MBA Program by JAIN (Deemed-to-be) University provides the relevant pedagogy. Dive into the program details and check if it aligns with your goals.
