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Josh Kaufman is the bestselling author of The Personal MBA, a business training book that has sold 900,000 copies, and the speaker of the 2013 TED Talk “The First 20 Hours: How to Learn Anything,” which has been viewed over 39 million times.
Kaufman says the average person with an idea can make $10,000 a month by starting their own business – without the need for a higher education.
“I think it's doable for most people,” he told host Steven Bartlett in a July episode of the podcast “The Diary of A CEO.”
Related: How to Become a Billionaire by 25, According to a College Dropout Who Became a $1.6 Billion-Net Worth CEO
Kaufman explained that some young entrepreneurs think that starting a business requires understanding a lot of new things and that only people with a business education can do it. But, he says, you don't need an MBA, which can cost up to $250,000 at the best schools, to start a successful business.
“For better or worse, when adults decide they're interested in business, the first thing they do is go to Google, type in the letters 'MBA' and start searching for graduate programs at business schools. And I think that's a mistake,” says Kaufman.
According to a 2024 report from the Graduate Management Admission Council, three popular industries that MBA students enter after graduation are consulting, finance and accounting, and technology. Kaufman says if you're trying to get into these industries, an MBA could be worth a pretty expensive interview. However, an MBA isn't required for entrepreneurship.
Kaufman says aspiring entrepreneurs can skip the MBA because, while business is complex but not complicated, most ideas are “common sense and simple arithmetic.” So while entrepreneurs must understand and handle complex situations, running a business isn't about a six-figure degree — it's about how someone wants to create value in the world, in Kaufman's view.
Kaufman referred to a well-known study from the Stanford Graduate School of Business in 2004 and said: “If you are good enough to [to an MBA]you are good enough to do well anyway.”
The first questions to ask when thinking about starting your first business (with or without an MBA)
Kaufman says there are a few questions you should ask yourself as you begin your journey.
1. Is this a problem so big that someone would pay money to solve it?
The answer will help you understand the market size for the idea and its financial potential, he says. For example, if you were starting a candle-making business, you would think about why someone would buy a candle and at what price.
“In many cases, creating value is about making trade-offs between competing priorities,” Kaufman said. “The perfect product or offer would give the customer everything they want, and it would be free.”
Related: How to start your dream company this weekend, according to a tech CEO worth $36 million
2. How does your idea attract the attention of people who want or need what this company offers?
People are driven by certain basic instincts, says Kaufman, and marketing can play a role here.
“Packaging is important, belonging is important, story is important,” Kaufman said.
3. How will you ask for sales and what is the process?
This is the part where, ideally, money comes in and business owners convince someone to become a customer.
The ultimate goal of a sale is not just to acquire a customer, but to ensure that they are satisfied with their purchase and to encourage them to stay with the dealership for as long as possible.
“I think you can learn a tremendous amount of business knowledge and skills on your own by understanding the key concepts around business and how it works and applying them to your daily life, in your existing job or to starting something new yourself,” Kaufman said.
Related: This one talent is 'the greatest skill you can develop' to become an entrepreneur, says Professor Scott Galloway
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
