What is the ROI of a MBA?
Going to business school is a large investment in your time and money. If you are considering attending from a financial perspective, you should look at 3 factors:
1) Your forgone income- If you decided against business school, how much money would you earn over that period of time?
2) Cost of the program and preparation for the program- How much would it cost for you to prepare for the GMAT, submit your applications, pay tuition, cover living expenses, etc?
3) Your expected future income- If you did attend business school, how do you anticipate your salary reflecting that change?
Now that we know how to calculate the ROI, let's talk about how you can minimize risk and maximize reward.
1) Choose a shorter program- The phrase "time is money" is definitely relevant when you are missing out on income. The sooner you can enter the workforce, the less income you lose.
2) Choose a program that fits around your situation- Some people choose to keep working and take night classes. Others choose to study online or locally to reduce relocation and commute costs.
3) Only attend a program that adds value to your career- If you are already progressing in your career rapidly, do not slow down to get your MBA. Attend only programs with high value such as Booth, Kellogg, or Wharton. If you have a specific career interest, then choose a school with a strong program in that field. There is no good reason to attend a mediocre business school.
If you want to learn more about choosing the MBA that is a financial fit for you, arrange a free consultation with KaiZenith today.