The most likely reason for you reaching this page is because
you are the typical "Indian IT Male". You did well in school. So your
family and friends convinced you to take up engineering as this was a
"safe" career move. By the time you were close to your final year of
engineering you heard about these "MBA" graduates who made a lot more
money than what you were being offered through campus placements. So you
decided to prepare for the CAT / XAT / SNAP / etc. The first attempt was
unsuccessful, so you decided to take up a job while you prepared for it again
the following year. Unfortunately most of the jobs in 2000 all revolved around
IT and IT services. It didn't matter if you were a civil engineer, metallurgy
engineer, mechanical engineer etc, you most likely ended up working in IT thanks
to the booming IT sector and pay packages.
A few unsuccessful attempts later you started to think let's
do an MBA from ISB, Great Lakes or some US / European school. While reviewing
the application form for these schools you then come across the dreaded
question - Why MBA?
The brutally honest answer to this question is because you
believe that MBA is a ticket to make more money. The equally brutal truth is
that most B-schools would chuck your application right out the window if you
were to write that in your essay. So then you go through the next few phases of
the discovery process that I shall try to summarize here.
1) These are my qualifications / CV / Extracurriculars /
Profile - Can I expect a call?
This is the first reaction of most people and completely
understandable. Up until this point everything you obtained was based on your
achievements. Admission from kindergarten to first standard is also based on
your report card. Every time you moved schools your previous report card had to
be shown. Admission to undergraduate school, your first / second / third jobs
were all about what you had achieved in your past. Unfortunately for you, this
is only a tiny tiny fraction of what a B school application is about
as explained in this post
2) What now? - Well, get ready for a hell of a ride AND a
lot of work!
This is probably the most frustrating phase that applicants
go through. My advice is to have a very strong network of friends at this point
of time. Given that everything is about to turn topsy-turvy a good friend
circle helps. I kept a note book with different sections for the items below.
But you could use an online document just as well.
2-1) What are your interests?
If tomorrow you were to get up with absolutely no family
constraints and a very wealthy long lost uncle who has bequeathed you a fortune
what would you do?
Well, this is exactly what we are dreaming about right? I am
rich. I can do anything I want. I can travel the world, I can buy fancy cars, a
private jet, a huge house, expensive gadgets. I can date the hottest models and
get plenty of sex............. the list goes on. But what are you doing? Can
you continue doing it for another 40 to
60 years and not get bored? Be honest with yourself.
This is one of a bunch of tests used to find out what makes
you happy. Some people have told me that they could end up painting the rest of
their lives. Some wanted to open up restaurants and chat with the patrons. Some
want to open up libraries and discuss the books with others. Some want their
own private libraries. Some want to open day care centers since they love
working with children. What keeps you ticking?
2-2) What do you see yourself doing?
Once you figure out your interests (items that make you
happy), figure out how can you get there given your present constraints. For
example, if you like to paint give yourself 2 hours every weekend for
exclusively for painting. If you like to travel, decide to spend one or two
weeks in a year traveling to places close by.
2-3) Can B school really get you there?
Now this is where we come back to the "Why MBA?". You
want to start your own company - Hmmm... So how many alumni from this school
have actually started their own companies? You want to work in Private Equity -
What PE companies come to the school? What kind of roles do they offer. What
kind of prior experience do they look for?
2-4) You can't change careers / industries / functions so
easily!!
Post your undergraduate degree you probably switched jobs
easily. You also probably heard of some chap in IIM - x who moved into private
equity and is earning Y lakhs per month! However, this is not true for B
Schools targeted at people with experience. Given that the average work
experience is about 4 to 5 years the companies coming for recruitment are not
looking to take you as a fresher and train you. They are looking for people who
have relevant work experience and can hit the ground running.
Reach out to the school, its alumni, scour websites and try
to see if the school fits what you are looking for.
3) Holy s***. It costs what?
4) Hmm...... It should pay off in the long run right?
Think again. Typically, your expenses increase as your
income increases. Post B-school there is a house / car to buy. There is also
typically a wedding in the family and aging parents / grandparents to look
after. With these many expenses it really isn't easy to pay off that loan. If
you end up getting married, there is a possibility that there will be a child on
the way pretty soon. You will also need to save up for the child's education
and your own retirement.
Another point to note is that most schools talk about their
CTC figures. Not in hand salary. Knock 20% - 30% of the average number from the
salary statistics. Knock another 20-30% off to tax. When you remove the EMI are
you really getting more in hand than what you are getting right now?
Conclusion
Well, if this post has a take away, it is that you are
probably more confused about your MBA than before. Well, that is the point of this
post. To get you thinking. When you enter this league. You aren't going
anywhere unless you are thinking.
Okay the real
conclusion
Most of the people I have interacted with are smart folks
who eventually want to start their own business that will change the world.
They feel that B-school will open doors for them. While it definitely does open
doors, it also closes some. Given the financial burden that it imposes, it
reduces your ability to take risk. Also, you look at your post MBA salary as
the minimum that you should be earning from your business in order for it to
make sense. Also, it takes time and effort. Given the direction you want your
life to take, the price to pay might be a heavy one.
P.S. This became a really long post, so I had to cut down
some sections to the bare minimum idea. If you want me to expand my line of
thinking on any of the sections, leave me a note in the comments. Thanks.