Welcome to the Owner Institute Newsletter where we talk about getting owners working on and not in their businesses.

In this week’s issue:

• The MBA Myth

• What Actually Works

• The Real Business Education

Quick Hits

1. 😌The U.S. Department of the Treasury report shows the State Small Business Credit Initiative (SSBCI) has supported $3.1 billion in new financing for small businesses

2. 🪂Small Business Owners Advocate for Tax Reform to push for a tax code that better supports entrepreneurs.

3. 🚀Check out new grant opportunities for small business!

Deep Dive:

Why Your MBA Didn't Prepare You to Run a Business (And What Actually Works)

I remember sitting at my MBA graduation, fancy diploma in hand, thinking I was ready to take on the business world. What a joke that turned out to be. It might have been good for the corporate world but in the world I entered it was next to useless.

Fast forward to starting my own company, and guess what skills from my MBA I used most? How to drink beer and calculate net present value. That's about it.

The MBA Myth

Let's be honest about what an MBA actually teaches you: how to be a mid-level finance executive at a Fortune 1000 company. It doesn't teach you:

• How to make payroll when your biggest client is late paying

• What to do when your best employee quits without notice

• How to decide if that new software is worth $50K when you've only got $60K in the bank

• When to fire a client that's driving you crazy but pays well

• How to price your services when you have no idea what your competitors charge

You know, the actual stuff business owners deal with every day.

The Theory vs. Reality Gap

In business school, we analyzed case studies of massive corporations making billion-dollar decisions. We debated optimal capital structures. We created complex financial models.

You know what we never talked about? The day I had to decide whether to pay myself or my employees when cash got tight. (Spoiler: You always pay your employees first.)

MBA programs are designed by academics and corporate executives to create more academics and corporate executives. They're not designed by entrepreneurs to create entrepreneurs.

What Actually Works

So if an MBA doesn't prepare you, what does? Here's what I learned from 18 years of beating my head against the wall:

1. Find owners one step ahead of you

Stop taking advice from people running $100M companies when you're at $1M. Find someone who's at $3M and buy them lunch. They remember what it was like at your level and know what actually worked to get past it.

2. Join a peer group

Some of the best advice I ever got came from other owners facing the same problems. Whether it's a formal mastermind or just a regular meetup with other entrepreneurs, find your people.

3. Read, but be selective

Skip the airport business bestsellers. Look for books written by people who've actually built businesses, not just studied them. My game-changers were "Simple Numbers" by Greg Crabtree, "Profit First" by Mike Michalowicz, and "Traction" by Gino Wickman.

4. Invest in coaching

Lots of business owners think they’ve got it all figured out. Very few do. Unfortunately there are a lot of bad coaches out there. I’ve worked with a few who didn’t even ask my what our revenue, gross margin, cash flow, and net income was.

How much can you actually know about my business if you don’t know those four things? Answer: not that much.

Fortunately, there are good coaches out there and they are invaluable. Ask around and find someone. Everyone needs a coach.

The Real Business Education

Here's the truth: Running the business is the education. There's no shortcut. You're going to make mistakes that no amount of classroom learning could have prevented.

But you can learn faster by:

• Participating in peer groups

• Getting coaching

• Accepting that some lessons will be expensive

• Looking everywhere for the next piece of knowledge you need

What I Wish I'd Known

If I could go back and tell my MBA-graduate self one thing, it would be this: Your real education is just beginning. That diploma might get you in some doors, but it's not going to build your business.

The skills that built my first business from zero to $35 million weren't taught in any classroom. They came from years of mistakes, mentors/coaches/peers, sleepless nights, and hard decisions.

So if you're feeling inadequate because your fancy education didn't prepare you for the reality of business ownership, welcome to the club. None of us knew what we were doing at first. The difference is whether you're willing to admit that and start your real education.

In this episode of the Small Business Black Holes, host Alan welcomes Professor Matthew Green, a political science scholar at Catholic University and congressional expert, as they:

• Examine how Congress has evolved since the 1990s, particularly focusing on increased polarization and partisan division

• Explore the changing dynamics of congressional leadership, including how social media and attention-seeking behavior have impacted legislative effectiveness

• Discuss the current challenges facing House Speaker Mike Johnson, including managing a narrow majority and dealing with potential government shutdowns

• Analyze the historical parallels between current congressional dynamics and previous eras, particularly the late 19th century and Woodrow Wilson administration

• Highlight how various factions within Congress are responding to economic pressures and policy changes, from farm subsidies to tariffs

Check Out Owner Institute

Want to learn more about building real owner independence and wealth? Check out our programs at ownerinstitute.com.