What Degree Do You Need To Open Your Own Business?
Updated November 30, 2022
Video: Top Tips for Success as a Young Professional or Entrepreneur
Patrick McKenna, a co-founder and partner at Comeback Capital, has some great tips for success when you are just starting out in your career or starting your own business.
Starting a business has got many risks. However, you cannot imagine life without taking some risks. You need to have many qualities. It is important that you should find out whether you have got those qualities. Read the article that will give you some fair knowledge of the issue:
Degree programs can help you develop your skills, learn more about your industry and promote your professional development. Degrees can be especially helpful for aspiring entrepreneurs because the right degree can teach them valuable lessons, expand their business knowledge and offer them relevant advice. By researching degree offerings and other educational alternatives, you can make a decision that supports your personal business goals and aspirations.
In this article, we explain why it's important to earn a degree before opening a business, discuss which degrees can offer the most value to your career and offer tips you can use to decide whether pursuing a degree is right for you.
Why is important to earn a degree before opening a business?
Even though you can start your own business without a degree, a college education can still offer many benefits that can help you in your entrepreneurial endeavors. Here are some reasons to consider earning a degree before starting your own business:
Credibility
Regardless of your business area, having a relevant degree can help assure clients, investors and stakeholders of your competence and training. They may be more likely to seek your services or trust your offerings if they know you're an accredited professional. A degree can also suggest a commitment to your own professional development, ensuring others you're a dedicated professional who values knowledge and training.
Confidence
Another benefit to getting a degree before opening your own business is the confidence it can give you toward running your own operations. Learning about marketing best practices, effective management strategies and foundational business principles can help you in your career as you apply your knowledge to your business. A degree can broaden your perspective and make the challenge of starting a business more accessible. Degrees can also help you expect developments, grow your network and can teach you relevant skills you may need.
If you work in a technical field and plan to start a business, degrees can increase your knowledge and understanding of your chosen business area. The lessons you learn while completing a degree program may also help you remain in compliance with laws and regulations, problem-solve and understand basic foundational principles.
Competency
Besides the confidence and credibility a degree can offer, it can also improve your abilities and practical knowledge. With the right degree, you can develop applicable skills and experience that can help you effectively manage your business. Degree programs can provide context, helpful resources and tools business owners can use to help start, maintain and grow their operations.
Related: 20 Factors To Consider When Starting a Business
5 degrees needed to open your own business
If you're interested in pursuing a degree before starting your own business, research different degree programs to find one that seems relevant. Practically all degrees can help you grow as an individual and gain powerful tools and understanding. Regardless of the degree program you choose, supplement your education with courses that can help you build your business. Subjects like marketing, business development, project management and accounting can all offer valuable and relevant lessons.
Here are five degrees that can help you start a business:
1. Business administration
A business degree is a popular choice for many entrepreneurs. Getting a bachelor's or master's degree in business can introduce aspiring business owners to important topics like business strategy, data analysis and leadership skills. If you choose to pursue an undergraduate degree in business, you can also specialize your education to focus on business management or entrepreneurship. Both degree courses can help you develop valuable skills applicable to starting your own business.
Related: Entrepreneurship Degree vs. Business Degree
2. Marketing
Starting your own business can require a diverse set of skills. If you plan to work alone or with a small team as you grow your company, you may have to fill multiple roles for your business. Effectively advertising your company can help you attract the attention of customers, investors and qualified employees. A degree in marketing can help you understand the finer nuances of developing your brand, identifying your target audience and building engagement with customers.
Modern marketing concepts like search engine optimization and social media marketing have become dominating forces for most new businesses. A degree in marketing can help you learn how to connect with your customers and remain innovative in your strategies and approaches for building your company's brand. Marketing degrees can also help you design thoughtful communications or teach you skills like video production. You can use these strategies to better market your offerings and attract the attention of customers.
Related: Why Study Marketing? The Advantages of a Marketing Degree
3. Computer science
Even if you don't plan to work in a technical field, a degree in computer science can help teach you valuable skills helpful for starting your own business. With a computer science degree, you can learn how to build an effective website or design an app for your business. With a degree and your own knowledge, you can ensure your business' online presence accurately represents your vision and mitigate upfront costs to building your online presence.
Related: Is a Computer Science Degree For You? Top Majors and Jobs
4. Finance
A degree in finance, accounting or economics can help you manage your business's finances, evaluate the significance of market or economic changes and analyze company data to inform business strategy and make predictions. Finances can be an incredibly important aspect of owning your own business, and learning to analyze numbers and trends may allow you to better plan for your company's future and make sound financial decisions.
Learning accounting basics can also be beneficial for managing your company's books. If you plan to send invoices, establish accounts payable, manage payroll or do your own taxes, a background in finance can be incredibly valuable.
Related: Finance vs. Accounting Degrees: What's the Difference?
5. Communication
Getting a degree in communication or English can also be helpful to new business owners. Communication skills can help you grow your company, write marketing materials and communicate company values, initiatives and strategies. As a business owner, the content you produce and the communications you use with customers, employees and investors can all have significant effects on your brand, reputation and credibility. Learning to write and communicate well can help you design effective communications and elevate your brand.
Related: FAQ: Is a Communication Degree Worth It?
Tips for deciding whether to pursue a degree to open a business
While attaining a degree can help you gain valuable skills, knowledge and credibility, they're not always the best choice for every new business owner. Consider your own goals and needs when evaluating the benefits of a degree. Because they can represent significant time and cost investments, careful consideration and evaluation can help you determine if a degree is the best choice to help you accomplish your goals.
Here are some tips you can use to help you decide if pursuing a degree is the best option for you:
Interview a successful entrepreneur
If you know someone who's started their own business, consider asking them about their experience. Ask them if they have a degree and have them describe the value it brought to their organization. If you can find a business owner in the same industry you plan to enter, their experience can offer even more insight. Consider asking them as many questions as you're able about the process.
Books can also be a great resource for learning the strategies of successful entrepreneurs. Careful research might inform your decision on the best degree to pursue or to learn if a degree is necessary at all.
Related: 25 Questions To Ask an Entrepreneur
Perform a cost-benefit analysis
A cost-benefit analysis is a decision-making tool you can use to help you determine if a degree makes practical sense. Consider the cost of a degree and the time it would take you to complete a program. Then, consider how a degree could elevate your career. If you plan to start your own photography business, for example, an art degree could help teach you valuable skills and help you grow your network. However, when choosing a photographer, many clients review portfolios rather than credentials. Here, a degree may not be the best choice for your future business goals.
Conversely, if you're starting a consulting business or your own practice, a degree can be incredibly important because you may need to provide proof of your credentials. Carefully consider what a degree could do for you and your goals to determine how necessary it is to pursue one.
Talk to investors
Along with interviewing other entrepreneurs, consider speaking with potential investors about what a degree means to them. Often, starting your own business requires a significant up-front investment. Many small business owners seek investors who believe in their business idea and their personal capabilities. By speaking to investors and asking them what a degree means to them, you can determine if a degree would grow their confidence in your abilities. You may find your skills and vision are enough without a degree, or you might need a degree to build your credibility and prove you're a worthy investment.
Research certifications
While degrees can be a great way to learn more about your chosen area and develop applicable skills, certain certifications might offer similar benefits at a lower cost and with a shorter time commitment. If you want to develop skills in a specific area, like computer science, marketing or accounting, consider researching other professional development opportunities that can grow your skills. Certification programs can offer flexibility and promote your development of specific skills relevant to your goals.
Related: What Are Certifications? Definition, Benefits, Types of Certifications and Examples
Build your own degree program
Some colleges offer an option for you to build your own degree program. If, in your degree research, you can't find a program that fits your needs or goals, consider finding an institution that allows you to develop your own degree requirements. Building your own program can ensure all your courses and efforts support your specific goals.
(with courtesy to the author)
