Tag Archives: MBA goals essay

MBA Adcom is not a venture capital firm

I’m sometimes asked for the greatest mistakes applicants make in MBA admissions essays, and at some point I’ll pull together my all-time list. But in the meantime, here’s a mistake that I’ve seen a lot of among clients this year so far: muddling up the demands of MBA admissions and a venture capital pitch.

What I mean is, applicants who are on an entrepreneurial track (including social entrepreneurship) and who are therefore talking about a future creating and building a firm, feel they have to make a VC pitch for their proposed venture. They seek to justify themselves in terms of potential market segments, working capital requirements, time to breakeven, and so on.

Now it is always good for MBA admissions to show detailed, careful thinking. And if your “why-an-MBA” is based on a new business, you need to talk about the proposed venture and its industry-market background in a specific and knowledgable way.

But you don’t need to make “the business case.” Adcom is not a VC firm. As long as the idea is not manifestly absurd, they can’t determine if it will actually work, nor are they ever going to try. This is not their skillset, and not their fundamental concern.

Put it this way: A VC firm will “like” a business idea if it thinks it will get out (a investment multiple of) more money than it puts in. If so, the VC will, to quote Dragon’s Den, “make you an offer,” that is, invest cash for a percentage of the business.

MBA Adcoms are not investing cash. They will “like” a business idea enough to make you an offer (an offer of a place in the b-school) if your venture seems broadly plausible, interesting, ambitious, doing something worthwhile in the world, and worthy of an MBA.

So, while you should make a general case for your new product or service, in reality the venture does not have to watertight. You can include the jumps of ambition and enthusiasm that you would have to scrub from a funding pitch.

But there is a wrinkle: Adcom is like a venture capital firm in one way. It is well known that VCs judge two things: the business idea AND the entrepreneur, because they are investing in the person or management team as much as the project. Even a mediocre idea can be a winner, if put in really competent hands. In this sense Adcom mirrors the VC, asking themselves: (whatever the applicant wants to do…) “Can he do it?” Can she pull it off?”

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‘If you aren’t an idealist at 25, you’re a rogue; if you’re an idealist at 50 … you’re a fool’

In the headline above I’m paraphrasing Winston Churchill, who is alleged to have said: “If you’re not a communist at 20, you’re a rogue; if you’re a communist at 50 you’re a fool.” In fact the quote in one form or another goes all the way back to Francois Guisot (1787-1874) who said during the French Revolution: “Not to be a republican at 20 is proof of want of heart; to be one at 30 is proof of want of head.” (Republican meant something altogether different from the GOP, of course.)

This quote, in its various iterations is saying: Society expects its young men and women to have ideals and seek to change the world. It expects the fire and passion of youthful optimism and its critique of the status quo, even if it is rash or naive. If the youth do not have that, what do they have? (Whatever they have, it’s worse than naivete.)

When you are in middle-age, then okay, it is expected that you accept certain compromises and adopt a measured cynicism.

Why is the quote important for MBA admissions? Simply, if you are applying for a full-time MBA program you are likely to be somewhere between 23-30; that is still in the age bracket where you should have fire in your belly to change and improve the world. If not, that means you just want to advance yourself and make boatloads of money, and while Adcom likes those driven to succeed, the whiff of narrow self-oriented goals is a golden highway to being dinged.

What does it mean to change and improve the world? See my previous post on this. It does not mean hugging trees in Roanoke or digging wells in Sudan or other “bleeding-heart” welfare-service missions, which, frankly, are a low credibility angle for MBA applicants.

It does mean using your new business and management skills for broader societal benefit, in addition to your own benefit.

Wider benefit that you create can come in developing a new product or service or business model that challenges and improves an industry. To take some famous examples: Herb Kelleher created a no-frills airline (Southwest) that brought air travel to the masses; Ted Turner (CNN) made global news sexy; Mark Zuckerberg (Facebook) developed a platform that brings social communities together in an unprecedented way; Niklas Zennström & Janus Friis (Skype) brought free voip calls to the world — and in the process decimated exploitative national telecoms parastatals.

These were not do-gooders. But they were industry “revolutionaries.” They didn’t look at their sector and say “I just want to be a senior manager and go up the corporate ladder.” Whether as startup entrepreneurs or sitting corporate executives, they were ready to challenge industry status quo’s to build something more ideal. That’s the kind of 20-something idealist you need to be for MBA admissions.
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