Well, well, well, what do we have here.
So according to a (totally non-biased) press release from the Graduate Management Admission Council (GMAC) earlier this year, MBA grads are making more money than ever.
(Just for clarity, the GMAC is a “global association of leading graduate business schools.”)
Apparently, US employers plan to offer new MBA hires a starting salary of $115,000, the highest ever recorded in the US when adjusted for inflation.
Key words: PLAN. TO.
In spite of these lofty, non-scientific projections, the number of MBA applications—as a whole—is on the downslide. Here’s a chart from the otherwise very optimistic GMAC.
(Yes, the entire WealthLAB crew is MBAs, too. Jury’s still out whether that makes us marks or smart. 🙄)
And according to Forbes, this makes it the best time ever to pursue an Ivy League MBA.
So what does this all mean? Let’s unpack it for a second.
Top 10 programs are letting everyone in…
According to the various reports, some programs across the country have seen double-digit drops, with the top 10 business schools seeing serious declines.
At the highly selective Yale University, the acceptance rate jumped by nearly 44%. Dartmouth College’s Tuck School of Business, another Top 10 program, admitted more than one in three of its applicants, a 48% increase in a single year.
Meanwhile its applications dropped by 22.5%.
“The joke among deans is that ‘flat is the new up,'” Andrew Ainslie, the dean of the University of Rochester’s Simon School of Business. “If we can just hold our numbers, that is an incredible achievement.”
Other Ivy League schools have dropped also, with Harvard measuring a fall of 4.5%. Meanwhile, big names like Stanford saw a bit more at 4.6% and UC-Berkeley Haas at a shaking 7.5%.
And outside the Top 10?
When these numbers are narrowed down to individual schools, like University of Michigan Ross School of Business, the picture gets worse. This university saw the biggest reduction, noting an 8.5% decline with just over 3,000 candidates applying.
There are only a few reported exceptions to this overall decline, but the biggest business schools in the nation agree that there is a serious reduction in MBA interest.
Ainslie says up to 20% of the top 100 MBA programs in the country are likely to close in the next few years.
Uncertainty over work visas for international students, the strong US economy with decreasing job loss, and the rising costs of degrees are all noted as potential causes.
The positive side to the story, as Ainslie pointed out, is that it’s going to spark new development in the design of existing MBA programs. One particular program has been built around entrepreneurship.
In addition, the prestigious post-MBA job paths—think investment banking and management consulting—have been replaced by jobs in the tech world and Silicon Valley.
“Tech has displaced consulting and finance as the preferred career path for top-tier college students,” says David Minnick, founder and CEO of Camino Data, and former president of beverage company, Purity Organic.
“When I started Princeton in 2003, it was still a big deal to get a MBA or JD/MBA after college,” he tells Forbes. “That was the thing to do.
“Four years later, when I graduated, we wanted to be more entrepreneurial. We saw people who had started successful tech businesses. We saw there were low barriers to entry, and that it was okay to fail.”
Student debt vs. MVP?
There’s also the whole cost thing. Business school can run you $200,000, making it a cringe option for 20-somethings already riddled with debt. For founders, this is money better spent building an MVP.
(No, not Most Valuable Player. Minimum Viable Product.)
Not to mention the experience it brings.
“When I interviewed people with an MBA, or experience at a big beverage company like Coke or Pepsi,” says Minnick, :I was concerned that their personality type wouldn’t be the right fit for a young and growing company like ours.”
In his view, hustle, skills and culture fit are far better predictors of performance than a degree.
Ivy League MBA fire sale…🗑
Apparently this all means that IF you are one who’s always dreamed of an MBA from a prestigious school, there’s no better time than now.
“With an unprecedented decline in MBA application volume at many business schools – including iconic, top-tier programs – there’s definitely a ‘perfect storm’ happening for prospective applicants,” Alex Min, CEO of The MBA Exchange, a top admissions consulting firm, says.
“Deans and admissions committees are feeling strong pressure to fill available seats with qualified candidates, even if some of these individuals might not have been admitted in previous years when application volume was growing.”
WWE CEO Vince McMahon Is The Most Alpha Boss Human Being Alive…
WWE owner Vince McMahon may very well be the most #boss CEO in the world.
Not only did he turn a frowned-upon pro wrestling company into a national treasure, he catapulted it into a publicly-traded, billion-dollar juggernaut.
Not to mention, he essentially created pay-per-view—the same model that made Mike Tyson and Floyd Mayweather the highest-paid fighters ever.
He also built the model for live streaming, which the big networks (ESPN, HBO, Fox etc.) have now copied.
Despite all his CEOness, Vince McMahon, at his core, is a total G. One time on HBO, in his mind, he was being spoken down to by host Bob Costas.
My man Vinnie almost snaps the mug in half with his teeth. Then says, “I’m a fighter, OK? I enjoy fighting, by the way.”
Just pure machismo oozing out of his pores.
But quite possible the single-most alpha thing McMahon has done is the way he fired his ex-champ Ultimate Warrior. And not on TV—but in real life, like a CEO of a multi-million dollar international corporation.
According to Vince, the Ultimate Warrior was demanding a $500K raise, right there, on the spot, just prior to his scheduled match with Hulk Hogan vs. a team of anti-American opponents.
“My responsibility is to present what I have advertised. My responsibility is to the audience,” McMahon said about the situation. “So I reluctantly agreed to Warrior’s demand, knowing what I was going to do as soon as he came out of the ring.”
Although later legal discoveries revealed that it actually came a full month before in a five-page long handwritten letter, which McMahon supposedly agreed to.
Still, McMahon wasn’t about to be bullied without repercussions. “It gave me great pleasure to fire him and to let him know why I was doing it.”
Soon as Warrior stepped backstage, he was presented with a BRUTAL suspension letter from Vince, splattered with alpha machismo on all sorts of levels.
The gems are plentiful and come in abundance and rapidly so.
“You’ve become a legend in your own mind; you’re certainly entitled to your opinion.”
“You’ve become impossible to work with.”
“Your behavior has become unreliable and erratic.”
Then there’s the many, many reasons why he shouldn’t be paid as well as Hulk Hogan.
Anyway, check it out.
As you know, on September 23, 1987, you signed a Booking Contract with Titan Sports. At the time you signed the Contract, you were a relatively obscure wrestler with an enthusiastic professed desire to succeed. I therefore invested a substantial amount of time, money, and a sincere energy to develop your talents and person as a worldwide WWF Superstar wrestler, such that you have been able to be successful and achieve stardom status throughout the world.
Unfortunately, it now appears the fame that you have obtained through the efforts of Titan has gone to your head. Frankly, you have become impossible to work with, and have completely forgotten your obligations to Titan and WWF fans, both ethically, professionally, and contractually.
Your principal complaint apparently is that you are not being compensated at the same rate as Hulk Hogan, although ‘Hulk’ is a living legend, is still much better known to the public, has wrestled longer, is the WWF champion, is in much greater demand for personal appearances, is a bigger star and draw at WWF events, is more dependable and is far more revered and respected by WWF fans and by the public at large.
Here’s the full letter:
Raising Startup Capital: 4 Funding Sources You Can Bank On
Turning entrepreneur can be an exciting adventure—one that demands an incredible amount of perseverance and hard work. But one of the biggest startup challenges is fundraising. VCs are getting pickier and pickier, so tapping the right fundraising strategy can make or break your business. Here are four ways to tackle that.
1. Bank On Microloans:
Many entrepreneurs take to Kickstarter too soon, before even gauging other options. Microfunding—an SBA-backed program that’s been around over 25 years—is a much easier and quicker to get funding vs. a traditional loan. (And it’s a great way to build your credit score, as well.) Here’s a brief and somewhat-informative video that explores how small business loans work:
What’s more, Microlenders also offer flexible payment options, and may mentor entrepreneurs to help them succeed.
2. Get A Partner:
When you’re looking for a little extra capital or technical know-how, seeking a co-founder and establishing a partnership can drive capital and planning. If a co-founder isn’t in the works, building strategic partnership with complementary businesses is a great avenue to fuel growth.
You don’t have to vie for a business’ CSR initiative or do charity work to get sponsored. As long as your idea sells and you’re building a great product, you’re on the grind. Sponsorships are largely done through advertising or media appearances. And sometimes by adding their brand to yours for a while.
4. Using Charge Cards:
Charge cards can be a powerful tool to obtain capital for your business. Unlike credit cards, charge cards do not come with a preset spending limit. The perks? It allows you to meet large expenses swiftly. What’s the catch? The lender requires you to pay the balance in full every month. If you’re financially responsible, charge cards are a great way to meet your costs.
5 Global Fintech Apps To Watch
The fintech space has witnessed significant growth in recent years – marrying tech and finance to simplify a lot of processes for businesses and people like you and me. Here are five fintech apps that you can bank on.
This stock trading app comes with a big perk – no commissions. How does it make money? It has a subscription-based service, Robinhood Gold, which charges users a tiered monthly fee for services like extended-hours trading and margin. Available across both iOS and Android platforms, Robinhood has over 4 million accounts currently.
In an effort to tap into Africa’s growing millennial base, Nigerian fintech startup, Piggybank.ng, aims to help people increase savings – through plans that cater to both low and middle-income Nigerians. Savers don’t incur any upfront fees and may deposit as little as a dollar a day, and are discouraged from withdrawing their savings until an agreed date by charging an early withdrawal fee of 5%. What’s the interest you gain? Depending on the duration and type of investment, you can expect to accrue anywhere between 10-12.5%.
3. Square Cash
With over 7 million active users, Square Inc’s cryptocurrency-integrated payments app, Cash, has enjoyed staggering growth recently. The app simplified payment transfers – if you want to transfer money to a friend, all you have to do is send an email to the friend with the amount, and cc firstname.lastname@example.org. This move just wiped away the need to create an account or look up bank account details. All it requires is your debit card number.
BudgetBakers’ popular personal finance app, Wallet, helps users track their expenses and allows them to integrate multiple accounts into the app – if you need to add more than three accounts, a small fee is charged. The app provides your expense details across a bunch of useful charts, reports and lending records.
5. Google Wallet
Google jumped the payments space and came out with something packed with great perks – transfer payments with a single tap, coupons to grab bargains, completely paperless and it works across some of the biggest stores like Macy’s, Subway, and outlets that permit MasterCard, Visa, Discover and American Express.
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