Sunday, August 08, 2010

Is MBA important to start a company?

For the purpose of this post, I have modified the original title "Is MBA important for a programmer to start a Tech Company?" as "Is MBA important to start a company?” in my opinion "programmer and tech company" on the original topic  is irrelevant. Someone who is good at what they do should be a good audience for this post.

I have asked the title question in several forums and to others. And if I were to conclude up on the answers; it is, may be MBA is useful. But not everyone can do MBA for many different reasons that we don't care from this post point of view. So if you want something to get going and your appetite for starting something is growing day by day, then you should at the least understand what is required for you to start a company? Especially when you have no experience in business models\marketing\margins. In the previous sentence, it is with intent I mentioned "no experience"; but having knowledge of the aforementioned domains by themselves, adds a great value to what you are planning to do.

My objective of this post is to distill the ideas that were mentioned on the original post. First and foremost, understand who your customers are? You would be doing injustice to your efforts and others involved, if you do not understand for whom you are trying to solve the problems. Once you have that work done and confident about your solution, pitch the ideas to people and get non-binding agreements, as mentioned in the original post. This step inherently takes care of two things for you; firstly, you know what the customers want and secondly, you care about the end user experience. Having done the above, should put you in a better position from the start. Now to get the next leap or getting close to where you want to be from the start; I have directly picked the takeaway about business from the original post, which is as below:

"1) a product or service that people want and are willing to pay for, and 2) a way of delivering that product or service, such that the amount of money you take in, is larger than the amount of money, it costs to deliver it.

That's it. There are a lot of tangential ideas, but most of them "orbit" that one. (Marketing, sales, margins, etc.) "

Enjoy the spirit of entrepreneurship and good luck with all your efforts!


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