If you are thinking about starting a business but are hesitant because you do not have a business degree, then we have good news for you. Going to business school is not a prerequisite to starting your own business! There are advantages to having a bachelor’s or master’s degree, but a college degree is not a guarantee of success, and it is possible to start and run a successful business without one.

Starting a business with only a high school diploma or an undergraduate degree can feel intimidating, while degree programs give you more advantages and opportunities to be successful in business. The best degrees to pursue if you want to run your own business are in business management, computer science, marketing. A Master’s in Business Administration is one of the most beneficial degrees to obtain when preparing to start your own business.

If a college education does not suit you, there are many alternatives to a business degree. Proper planning and how you overcome common obstacles are more telling factors in how successful your business will be. 

The Advantages of Starting a Business Without a Business Degree

Starting a business without a business degree may seem like a daunting task, but it also comes with several advantages that you may not have considered. By forgoing a formal business education, you have the freedom to think outside the box and approach your business in unique and creative ways. It also helps you save up-front costs, and opens doors for additional opportunities to discover and develop essential skills and expertise. 

Freedom to Think Outside the Box

Going through business school may make you feel like you need to do things in a certain way to make your business successful. Running your own business without a degree allows you to think outside the box and find solutions that you may not have realized if you were referencing an entire degree’s worth of knowledge.

On the job, you will get firsthand experience in best practices for project management, financial management, and time management. You will also gain a firm understanding of your ideal customer’s wants and needs, and gain clarity around your pricing. Having real-world accounts teaches you many lessons that you may not be able to learn in business school.

Opportunities to Develop Unique Skills and Expertise

Having background and expertise in an area related to your business will most likely benefit you if you decide not to further your college education. Having a foundation in your business’s specified area gives you an advantage in understanding the nuances of your products or services, and in understanding the desires and fears of your customers.

This also means that, in the years you would be completing a degree, you have the opportunity to build real-world experiences. Working in your industry gives you firsthand experience in practicing communication skills and other soft skills that a degree program may not be able to provide. You are already establishing your expertise within your field, and have the knowledge you need for forecasting and problem-solving trends and issues that may arise. 

Cost Savings

We are no strangers to understanding how costly a degree in the United States is. Even with financial aid available, not everyone has the money to foot the bill and take a chance on paying for a degree they may not need in order to run a successful business.

This requires a cost-benefit analysis to determine if a degree would be beneficial for you: will your customer or client base need to look at your portfolio or your credentials? Will the time and energy you put into earning your degree pay off in your business if you do not have a degree? Ultimately, it comes down to considering if a degree will be a key factor in helping you achieve your business goals or not. 

Alternatives to a Business Degree

While a business degree can be helpful in starting and running a business, it is not the only way to gain the knowledge and skills business owners need. There are many alternatives to a degree in business that can provide you with the education and resources you need to start and run a successful business.

With instant access to millions of online courses and resources, it is possible to learn all you need to know about business on your own time. Business books and case studies related to your market will also give you current insight to what works and what doesn’t, and how you can apply that to your business. There are ample opportunities for online or local mentorship and networking as well. Let’s talk about what these aspects of entrepreneurship look like without an alumni network or formal business education.

Online Courses and Resources

Successful entrepreneurs never stop learning and growing in business ownership and leadership. Luckily, the internet makes it incredibly easy to find relevant and helpful resources small business owners need to grow and scale their small businesses.

There are many credentialed courses within all industries that can teach you the ins and outs of your market, your competition, or how to streamline your business operations. This alternative to a business degree is advantageous in that it allows you to learn at your own pace instead of within a rigid timeline and schedule. 

Mentorship and Networking

Entrepreneurs need a strong network and mentor to lean on. Connections and relationships within business can hold so much power in helping small business owners grow and scale with ease. A strong network is how you can find exactly who you need to mentor you, or help you find perfect-fit candidates to hire.

Do not be afraid to put yourself in front of others and talk about what you do. Look for local opportunities to network and browse online networking opportunities as well. Connections can be made anywhere — not just within an alumni network.

Reading Books and Case Studies

Reading books and case studies can help you gain more competency within your industry and make you a more informed business owner. There are countless successful business owners who have written books that will help you learn from their experiences and shortcomings.

Case studies will give you the data you need to improve your product or service, and the exact language your target audience uses. This gives you data and language for marketing materials and strategy as well as a test on if what you have in place is working or not. Reading and researching will take time, but it will still be less time than you would spend while simultaneously getting a degree and launching a business.

The Importance of Planning and Preparation

Starting a business is an exciting adventure, but it’s also a serious undertaking that requires careful planning and preparation. Without a solid plan and the right preparation, you risk wasting time, money, and resources, and potentially putting your business at risk of failure. A business plan will help you focus on specific steps you need to achieve your short-term and long-term business goals.

Conducting Market Research

You need to understand your market’s needs. Once you understand their needs and gather current data, you can create a marketing plan to use across social media, email marketing, advertising, and other marketing materials. 

For example, market research in healthcare will assess what patients need, what they are trying to avoid, and how they can improve. This data and information will help them create products, services, and marketing materials aimed at gaining new patients and retaining the ones they have.

Developing a Business Plan

You want to know that your hard work will pay off, and that’s why you need a plan. You need to lay everything out in increments so that it is easier to track, evaluate, and improve. This will help you understand where things fell off track, and what needs to be added or removed in order to reach your business goals. 

For example, a human resources department would need a business plan to retain current employees and attract new ones. They will need to clarify their requirements, conduct market research, collect feedback and data, and use that information to make changes and improvements in their process.

Building a Support System

Planning and preparing for starting a business is not a solo job. You need a strong support system to lean on through all the ups and downs you will face as an entrepreneur — specifically, people who have real-world experience in similar specializations.

Think about business owners you already know. Ask them for advice or where to connect with more people. It is also beneficial to research local networking events or coworking spaces that you can be a part of. Your work experience with building client or customer relationships and who you connect with on social media can also add to your support system.

Overcoming Common Challenges

There are many challenges in the business world, and every business is unique. However, there are common challenges that many entrepreneurs face, such as securing funding, finding customers, and managing cash flow. By being aware of the challenges, you can start to develop strategies to overcome them, which can help increase your chances of running a successful business.

Dealing with Financial Constraints

Financial understanding is a crucial part of running your own business. You need to understand the basics of budgeting for business success, business expenses and cash flow, saving for taxes, and payroll or invoicing.

You may not have the financial backing to reach the goals in your business plan, so you need to understand how you can grow and scale within financial constraints. If you invest in learning about business finances up-front, you will save your business money in the long run.

Marketing and Promoting Your Business

Whether you’re the co-founder of a startup or just trying to make your business idea work from your garage, like Steve Jobs, people need to hear about it. However, this can often be more difficult than it sounds, especially for a new business. Attracting new customers and retaining current ones is not always a done deal.

Marketing and social media trends change frequently, and they are difficult to keep up with when you have a small team or are running things solo. Marketing and advertising can also be expensive, which brings us back to making sure you have the funds for it. When you are ready to outsource or hire for your marketing needs, it can also be a challenge to find someone who understands your market and can get you the best ROI. Marketing and promoting your business is always changing, so you need to be ready to take on the challenges.

Building and Managing a Team

Building and managing a team can be a headache. You will need to pull your CEO card from your collection of business skills to find who you want to help you in this endeavor — as well as let go of whomever you don’t. Communication is key when building a healthy, functional team, so ensure you are ready to maintain good communication and build trust with everyone you hire.

To keep morale high, make sure you are appropriately assigning and delegating tasks. An overworked, scattered team will not produce good results. Be prepared to set clear parameters and expectations, and be open to giving and receiving feedback.

Final Thoughts

So, do entrepreneurs really need a business degree? 

You have what it takes to embark on the entrepreneurship journey and be the next Steve Jobs or Mark Zuckerburg. You have access to alternative resources and can gain knowledge and sharpen your skills on your own time. As long as small business owners come prepared and ready to face any challenges that come along, there is no doubt that their small businesses will be a success. 

Remember that while having a business degree is not essential for successful entrepreneurs, it does give you a huge advantage in business ownership. There is not a correct path — just the path that is right for you.

For more research on how business owners climb into their role, read “How to Become a CEO.”