The Case for Skipping the MBA

Sometimes, the best MBA decision is not going at all.

A few years ago, I worked with a candidate who got into UC Berkeley's Haas School of Business. In the same week, she was offered her dream job. Instead of pursuing the MBA, she took the job. She is still there!

Even John Hu from Stanford went to Stanford's GSB for a year and dropped out to build Stan. The path isn't always linear.

The real cost of an MBA

The financial reality is stark: an MBA can cost you a half-million dollars when you factor in tuition, living costs, and two years of lost income. For some, it's a necessary investment that pays dividends. For others, it's simply too expensive relative to the alternatives.

The MBA makes sense when...

• You need specific skills or credentials for your target role
• You're genuinely stuck on your current career path
• The network would fundamentally change your access to opportunities
• You've hit a ceiling that only an MBA will break through

It usually doesn't make sense when...

• You're already on a great trajectory in your career
• You're going because it's what you're "supposed" to do
• The opportunity cost is your actual dream job
• You haven't exhausted other paths to your goal

The value of self-reflection

Here's what I tell candidates who are exploring their options: the application process itself has tremendous value. The self-reflection, goal-setting, and definition of your path that comes with considering business school – that work matters, regardless of whether you ultimately decide to go.

There's no shame in deciding that an MBA doesn't make sense for you. Sometimes, the biggest risk is following the conventional path when your gut says otherwise.

The MBA is a powerful tool – but not the only tool

Before committing to any path, ask yourself: what's the real goal? Start there, and the right decision will eventually become more clear.