Mba Before College: Why Every College Student Needs to Start a Business and Learn Mba Principles Now
198
Mba Before College: Why Every College Student Needs to Start a Business and Learn Mba Principles Now
198eBook
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Overview
Product Details
| ISBN-13: | 9781982209636 |
|---|---|
| Publisher: | Balboa Press |
| Publication date: | 10/17/2018 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 198 |
| File size: | 455 KB |
About the Author
Read an Excerpt
CHAPTER 1
WHY LEARN MBA CONCEPTS BEFORE COLLEGE?
"We believe each child has a gift that can change the world in a profound way."
— Laura A. Sandefer, Co-founder of Acton Academy and author
All of us have inherited gifts and the potential to succeed on our own terms. I hope this book can plant a seed for high school and college students who want to live purposeful lives, even embarking on their own hero's journey to "change the world in a profound way." The earlier we take charge of our own lives, the more likely we are to make a meaningful contribution to the world. We are intrinsically happier and more peaceful when we live purposeful, authentic, and fulfilling lives.
I wrote this book for my children to teach them what I have learned in my MBA program. During the three years I studied in the online executive MBA program at the Jack Welch Management Institute, I frequently had blissful "aha moments" in learning knowledge and wisdom from Jack Welch, his professors, the world's leading CEOs on our Experts of Practice panel, and from the business books I read. Those frequent eureka moments sparked many insights and discoveries.
I also reflected on the seven different companies I worked for throughout my career, from a Fortune 50 global company to a small startup, and recognized why some of them were successful, while others were failing. I realized that most businesses failed because of people-related problems: failure of leadership, hiring the wrong people, failing to manage cash flow, failing to understand customers, failing to anticipate disruptions, and failing to adapt to change. As the old saying goes, "Businesses don't fail, people fail businesses."
I often shared my learning with my husband William, and he'd reply, "We need to teach our children and let them know this wisdom now before they get into college and business. That's your best return for the investment in the MBA program." Initially I neglected his advice until one day I "woke up" while listening to my favorite marketing luminary Seth Godin on Dave Ramsey's podcast. Godin said that every student should start a business during his or her four years at college.
Then the messages kept coming. While I was watching Louise Hay's film You Can Heal Your Life, I became totally mesmerized by the message from Doreen Virtue, the author and motivational speaker. She said that we are entering the time of manifestation and cooperation, a time during which people will stop going to jobs that don't matter, stop making meaningless objects that do not matter, and stop spending money on things because they feel empty inside. We will be following our personal passions, working together on our collective passions and in the process adding more meaning to all our lives.
I follow many successful entrepreneurs and media-preneurs — those who find their success via online and social media — through their books, blogs, videos, and business podcasts. Doreen Virtue's theme has been often repeated: in order for us to fulfill our passion and add meaning to our lives in this new age, we must find ways to lead ourselves from within. One of the most obvious ways to do this is to start our own businesses, big or small, for profit or non-profit, to make a difference in the world, instead of working for others in low energy jobs.
I decided to teach my then 12-year-old son Ian and 10-yearold daughter Amy the leadership, business, and people management principles taught in my MBA program. I wanted them to have the knowledge and tools so that when they start their own businesses, they will be wiser, make good business and people decisions, and reduce or avoid the same mistakes others made. Even if they did not understand all the principles at that young age with no real-life experience, I wanted them to know the tools and wisdom that exist. Once they are aware of these, they can continue their development on their own or with the help of mentors. Kids have so much brain capacity that when they want to learn, they can learn at an amazing rate.
My career transformation. Both my parents worked as mechanical engineers, staying with one employer until retirement. My parents, schools and society at large conditioned me to get good scores at school, find a safe job, raise a family, and work for others till retirement.
I worked hard to be a straight-A student, earned that safe engineering degree and found my dream job upon graduation with a global company. I really wanted to "marry" my employer and stay employed "happily ever after." But the business world was changing rapidly. My first employer was a Fortune 50 company, once one of the biggest, most successful and admired companies in the world, recognized as one of the founders of Silicon Valley. However, the company changed five CEOs during the decade after the founders passed away. Company culture and brand deteriorated, earning unfortunate attention in the news for such as topics as "the biggest layoffs of the 21 century."
After going through the agony of a spinoff and the acquisition of my business division, I moved on to work for several publicly-traded companies and small startups, some successful, some not. I gradually learned that leadership decisions matter so much that they can make or break a business, no matter how big or small. I had lost jobs due to various mergers and acquisitions or, in one case, when a seemingly well-funded startup ran out of cash.
I had followed the path that society expected of me until I got a wakeup call at age 43 when I lost my job due to my employer's cash flow problem. Finally, I had my epiphany — I had always been at the mercy of a company and its leaders' good or bad decisions. I had never really thought about how I was going to lead my own life, follow my heart, and make a difference in the world. I thought, why can't I be the leader of my life, live from my own authenticity, and serve the right people who are ready and welcome my service?
With the guidance and help of a gracious and successful serial-entrepreneur, I started my first boutique public relations agency. This was also a lifestyle choice, because I now had time to take care of my family and myself. I had the luxury of spending time on self-learning and on my kids' extra-curricular activities. I had the time to cook healthy and nutritious meals, while providing guidance to my kids on life topics that schools do not teach.
I became more balanced and started to commit time to meditation and exercise; most importantly, my family began to learn and grow together. I decided to recharge my batteries and acquire new skills and knowledge. I believed an MBA would prepare me to manage my own business well or allow me to go back to corporate America with a higher position if my business did not work out. Having two young children and a husband who traveled a lot for work, an online MBA was a natural choice. The Jack Welch Management Institute caught my eye during my research, not only because Jack Welch was one of the best CEOs in history but also because its flagship course — Leadership in the 21 Century — was exactly what I was looking for. I was so desperately in search of good leaders to follow and to be a good leader myself, I knew instantly the program was for me.
The MBA study opened my heart and mind, and I now see the world from a different angle. I want to share my learning, so you can plan your future at a young age — or at any age, for that matter. Through this learning, you can minimize failure, and even when failure knocks on the door, you can turn failure into steppingstones to success.
The job, a soon to be outdated relic of the industrial age. The job as we know it is an industrial-age model, and the industrial age is over. A simple search on Google reveals that as high as 80 percent of us don't enjoy — or even hate — our jobs. Very few people work for one employer for two or more decades as was common for the baby boomer generation. A 2016 LinkedIn study of its 500 million users found that millennials — those born between 1980-1996 — will change jobs an average of four times in their first 10 years out of college. A Gallup 2016 study of millennials showed that few were committed to their current jobs and that 60 percent were open to new jobs. However, job hoppers often mistakenly believe that they can find more fulfilling work with their next employers. Remember, employers own the jobs, but they do not owe you a career.
This trend will accelerate as automation, robots, artificial intelligence and machine learning continue to improve productivity. In his TED talk The Real Reason Manufacturing Jobs Are Disappearing, Augie Picado pointed out that 87 percent of lost manufacturing jobs have been eliminated due to productivity improvement, and those jobs are gone for good. In March 2017, Fortune published an article titled Robots Could Steal 40% of US jobs by 2030 based on a report by consultancy firm PwC. These lost jobs will not be just manufacturing jobs but will include such current jobs as teachers, drivers and accountants — even lawyers and doctors.
Traditionally, the most accepted way to make a living was to work for others by trading talent and time for money and security. And this time is the best time of our days and lives — nine to five, not counting commuting and overtime. However, the good job pool is getting smaller and smaller. Companies are looking for the best talent, but the best talent wants to work for freedom, meaning and self-realization. The new trend is bending toward self-empowered, passion-driven freedom-seekers such as technology entrepreneurs, social entrepreneurs, solo-preneurs, media-preneurs, small business owners, and freelancers.
Futurist and technology media pioneer Kevin Kelly said, "The future happens very slowly and then all at once. ... It's going to change everything and affect our infrastructure and businesses in a very dramatic way." Kelly said our society is not prepared for many of these changes, but I want you, the reader of this book, to be prepared.
A new kind of education is needed. Most educational systems around the world use standardized tests to evaluate learning and reward both teachers and students based on test results. This is still "the Factory Model of Education," preparing students to follow the rules and regulations to become productive industrial-age workers. But mainstream schools are not teaching important business skills such as critical and creative thinking, emotional intelligence, problem solving, decision making, interpersonal communication, leadership and change management, while ignoring important life skills such as health, nutrition, personal finance, relationships, mindfulness and seeking happiness from within.
The obsession of parents with a college education is almost psychotic. In the U.S. alone, higher-education costs have increased at twice the rate of inflation, and student debt tops US $1.3 trillion in 2017 and is growing fast. Deep down in our collective subconscious, we believe a college education equals good and lasting jobs. Even though the 2017 report by The Bureau of Labor Statistics reported only a 2.5 percent unemployment rate for college graduates, it is disconcerting to see more and more of today's graduates hopping from job to job, coming back to live with their parents, unable to find a meaningful job. In I960, the top employers were high-wage companies like GM, AT&T, and GE. Today, the top employers are low-wage companies like Walmart, Yum (Taco Bell, KFC, et al.), and McDonald's. For many college graduates, landing a fulfilling job while paying off their student loans is nearly impossible. Too many have received a degree but not an education.
We need a new kind of education for a fast-changing world. We need talent to solve difficult problems that others have feared to tackle, and leaders who can actually lead. We simply need happy adults who can navigate life's ups and downs without resorting to medication. We need people like Peter Thiel, the successful entrepreneur and venture capitalist who is challenging the current educational status quo. As Thiel sees it, "Today's elite universities are holding back innovation and contributing to a technology deficit that will have disastrous economic consequences. He believes "gumptious" kids (like the ones in his fellowship program) shouldn't spend their late teens and early 20s piling up debt that will push them into gainful but unrewarding jobs. Instead, they should pursue "radical innovation that will benefit society."
We also need a new kind of education to discover and nurture the uniqueness of all our children. According to a quote sometimes attributed to Einstein, "Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid." The fulfilled and happy people in our society are those who are intrinsically motivated to pursue whole-heartedly their personal passions and live authentically. The TEDx Talk by Adam Leipzig titled How to Know Your Life Purpose in 5 Minutes is one of the most viewed presentations on the Internet. Mr. Leipzig reported that 80 percent of his Yale alumni were not happy even after seemingly successful careers of power and wealth. This number matches Forbes' data that 81 percent of North American workers are dissatisfied with their work. Leipzig noted the happier 20 percent of his Yale graduates were those "who knew something about their life purpose, because they knew five things: who they were, what they did, who they did it for, what those people wanted or needed, and how they changed as a result." Our current educational system may help you make a living but taking control of your education will help you make a life. Take your education back.
Why MBA before college? I mentioned earlier my "aha moment" from Seth Godin's suggestion that every college student should start a business while in college. I believe learning MBA concepts early will give you the foundation of knowledge and skills to run a business. Successful companies are defined as those that identify, create and deliver products or services that are valued by customers, that make a profit for the owners and investors, while making a positive impact on society. This means that companies need strong leadership and a level of differentiation that distinguishes their products and services in a market dominated by other companies, large or small. It also means that companies need to make meaningful contributions to the communities they serve.
To manage a successful company, you need to learn essential skills that are taught in MBA courses. Knowing these business management principles will give you a better chance to run a successful company. A good MBA program teaches three fundamentals: leadership essentials, business foundations, and entrepreneurship.
Leadership essentials include the areas of what makes a great leader; knowledge and skills of being an effective leader; managing capable people effectively; building a great organizational culture; using business communication skills that share, inspire and persuade; leading change; and living a fulfilled career and personal life.
Business foundations include the areas of strategy, operations management, financial management, and marketing. These are the tools to help you speak the language of business and manage financial resources; understand how to operate the business in the macro-environment outside the business and micro-industry dynamics; deliver high quality products or services efficiently; offer best solutions that solve your customers' pains and problems; and plan your business for long-term success.
Entrepreneurship includes the essential knowledge on how to start a business, how to write a business plan, how to raise money, how to manage the business, and how to plan an exit.
Where to look for business ideas? The media and the public tend to pay attention to technology, software and social media startups, seeing to equate entrepreneurship with media and technology. Elon Musk and Jeff Bezos are the rare models for entrepreneurial success. A wide range of business opportunities that are not primarily driven by technology are available for all of us. By nurturing our curiosity and imagination, observing life and solving interesting problems, we can find great ideas to improve our lives and the lives of others. Just remember, the purpose of a business is to serve the customers and solve customers' problems and pain; in turn both customers and businesses flourish. Through all this, we obtain the opportunity to enrich the lives of our employees, customers and ourselves. Remember, success is just a byproduct when we help enough people solve their biggest and most painful problems.
(Continues…)
Excerpted from "MBA Before College"
by .
Copyright © 2018 Aileen Yi Fan.
Excerpted by permission of Balboa Press.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Table of Contents
Acknowledgments, vii,
Chapter 1 Why Learn MBA Concepts Before College?, 1,
Chapter 2 Leadership: Inspiration, Edge and Adaptability, 11,
Chapter 3 Communication: Inform, Inspire, Persuade and Engage, 23,
Chapter 4 People Management: The Right People for Your Success, 39,
Chapter 5 Financial Management: Learn the Language of Business, 53,
Chapter 6 Marketing: Getting People to Buy What You Sell, 67,
Chapter 7 Operations Management: Getting Things Done Most Efficiently, 91,
Chapter 8 Managerial Economics: Making Decisions in the Face of Constraints, 107,
Chapter 9 Strategy: A Customized Playbook to Win, 125,
Chapter 10 Leading Change: Leader's Ability to Drive Change and Culture, 143,
Chapter 11 Entrepreneurship: How to Start Your Business, 153,
Chapter 12 Capstone: Leading as a CEO and a Business Owner, 179,
About the Author, 187,