The GMAT is the first step on your journey to a dream MBA, and opens up a whole world of possibilities. However, there are investments of time and money involved, and you must ask yourself the one question every MBA should always ask: Do the returns justify the investments I am making?
In this article, we answer this key RoI question and prove to you that the answer is always a resounding YES. Here are some of the returns you can expect from your big name MBA.
Salary and earning potential increase
Multiple studies of expected salaries post-MBA and pre-MBA all say the same thing – the MBA is like a magic wand that can kickstart your career, from an earning numbers perspective. There are those that have experienced an $80,000 dollar a year increase in their salaries, from before an MBA to after an MBA. Even if you extrapolate that difference alone over a typical working period, the salary advantage is huge; if you account for the fact that an MBA will very likely help you reach heights in the corporate world which might otherwise remain out of your reach, you will realize that the differential earning potential is easily in the millions of dollars range. Just think of it – the difference is huge, and easily offsets any investment you put in initially – those will be an order of magnitude lower than your return.
Relaxed loan conditions
Higher education in any field these days is an expensive business; you will need to fork up a large amount to become a qualified, respected professional. The good news is that banks are much friendlier to MBA candidates when it comes to loans. Thus, the payback period is relaxed – for example, some banks that offer loans to Harvard Business School MBAs offer a 15 year loan repayment period – and the rates are typically better than what you would get if you were looking for a loan for any other purpose. Therefore, the loan ‘monkey on the back’ is substantially smaller – from a financial perspective – for a top MBA candidate.
This is a benefit that will become apparent to you only in the latter part of your career. As you become more and more senior and well known, you will command speaking fees and consulting fees from large businesses and organizations. You will see that consulting fees for someone from a top MBA will be significantly higher than someone without. This might not seem like a huge point, but believe us when we say that the difference could be tens of thousands of dollars per consulting assignment.
The additional credibility you earn from your MBA degree is enormous: you can instantly talk to senior executives, gain access to jobs with a $100,000 starting salary, and have investors put a million dollars into your venture. What this means is that you are given multiple shortcuts to financial rewards which otherwise you would have taken years to achieve without the coveted MBA tag.
You have now seen that the prospective returns – additional millions of dollars added to your earning power over your lifetime – by far outweigh the initial investment you have to make. We recommend that you waste no time – research GMAT coaching programs, like the ones at Jamboree – and start today!