Obtaining an MBA is quite an accomplishment and is something to be proud of. However, there are 3 eye-opening things they don’t teach MBA’s in school, especially when running a small business.
You’re probably so smart that you’re not
Intelligence and knowledge are extremely useful in life, but it can also be a liability. What I am referring to is that not everyone around you will have an MBA and you must be able to relate to your employees, vendors, and customers. Don’t be so proud that you look for perfection or have expectations that are not practical. If you do, then you will end up constantly firing employees and vendors instead of trying to seek the best from them. Worse yet, you may end up viewing everyone as numbers.
The cash in your business greatly depends upon your personal spending needs
When you work for a large, multi-national company, you can’t just decide to withdraw huge sums of money at will, and even if you did, it may not hurt the cash flow of the business. However, when you run a small business and take too much cash for your personal expenses, then you can easily choke the business, even a very profitable one.
Fancy projections and metric may not matter all that much
MBA’s like to crunch numbers, create graphs, and make presentations. Although financial ratios and projections matter greatly, the truth is that they can change in the blink of an eye in a small business and change drastically. If you can’t run the business properly to support your projections, then the projections are useless.
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