# Which is the better investment: Graduate school or a new company?



## wellnowwhat (May 24, 2013)

Let's say I have $20,000 to invest in either attending graduate school to earn a Master's degree or starting a new business.

Which would be the better option, in your opinion? Pros? Cons? Risks?


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## Shabby (Feb 14, 2013)

wellnowwhat said:


> Let's say I have $20,000 to invest in either attending graduate school to earn a Master's degree or starting a new business.
> 
> Which would be the better option, in your opinion? Pros? Cons? Risks?


It really depends on what you want to do with your life. If you decide to open a company, what services are you providing? Is there a high enough demand for the company to be able to potentially break even within the first year and perhaps profit within the second? 

Opening a company is a lot of work, but if you have a good set up and business plan then it is worth looking into. 

However, if for some horrible reason, something goes wrong with your company - it would be a huge risk not to have an MA to back you up in this day and age. Unfortunately, having a BA is no longer enough to get a good job. Having an MA helps, but many still sink in debt with no prospects of employment with the current financial crisis. Personally, I would get the MA. It'll help set you up and once employed, will ensure to some degree that you are paid above minimum wage. 

Then again, it is all about what it is you want to do with your life. Either road can be an amazing journey, just choose whatever feels right for you.


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## bluekitdon (Dec 19, 2012)

wellnowwhat said:


> Let's say I have $20,000 to invest in either attending graduate school to earn a Master's degree or starting a new business.
> 
> Which would be the better option, in your opinion? Pros? Cons? Risks?


It depends. Do you have any business background? Are you willing to accept that many months you may have no income but with the trade off that many months you may have more income than a normal person would? A small business is a great way to develop a huge nest egg, but is also a good way to go broke in a hurry. You should be ready to work for at least six months to a year before turning a profit with the business. 

If you would prefer to work for someone for a steady income, a master's degree may be a better option. If you are more willing to take risks and feel you have a good handle on what it takes to run a business then starting a small business begins to sound appealing. Just keep in mind in the business world $20k is a pretty small amount, you'll burn through that in a hurry with most businesses, so make sure to review your budget with someone that is good with numbers before you start.

Here's a good article on starting a business.
Follow These 10 Steps to Starting a Business | SBA.gov


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## aestrivex (Mar 7, 2011)

$20000 is not enough to start much of a business. if you have the capital and *want* to start a business it is a much more lucrative prospect than throwing additional money at school.


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## SlowPoke68 (Apr 26, 2010)

I would keep the $20K as a rainy day fund and take the time to get real experience in a field of choice, working for little or no pay as a second job, taking specialized training courses and getting certifications as necessary. Having a master's is not a license to print money nor even a ticket to a steady job anymore. They're pretty common, really. 

When I go to hire people I look for experience and specific training, not evidence that they are $35-$50K in debt and took two years off to write a bunch of research papers that were likely graded by a TA.

If you're in a field where a master's is an entry requirement, that makes it a done deal. Otherwise, think long and hard. There a lot of bullshit MBA's and others out there. And a whole lot of student debt.


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## Thalassa (Jun 10, 2010)

Unless you plan on being a lawyer, psychologist, professor, scientist or unemployed, I would definitely say the business.

You could definitely start up a business with $20,000, if you already have it and aren't taking out incremental loans. It's just not a lot if you're planning on buying property, but a lot of businesses start out of things like kitchens and food trucks, or small rented office space.


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## Agile (Sep 27, 2010)

I know the company I work for specifically likes individuals that tried to start their own business. Starting your own business and failing still looks positive on your record, as long as you can honestly account for lessons learned vs if I failed Grad School I would certainly not want to put that on my CV. 

It is a big risk starting your own business, however it is very cheap to do your own qualitative and quantitative market research ahead of time to know if there is a market willing to pay. The biggest risk is not having a market after all your investment, so my suggestion would be to start very small and do a lot of research ahead of time. Aim for people you feel are underserved and focus on a product or service that can alleviate their pain. People can invest so much of their own time and money on a business with a product with a market no one is willing to pay for, if this is the case don't hesitate to test other hypothethes (pivoting ) until you find the right fit.


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## Zombie Devil Duckie (Apr 11, 2012)

wellnowwhat said:


> Let's say I have $20,000 to invest in either attending graduate school to earn a Master's degree or starting a new business.
> 
> Which would be the better option, in your opinion? Pros? Cons? Risks?


Too little information here to say... what do you want to do and what kind of business? I don't think anyone could make a decision like that without knowing more specifics.


- ZDD


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## AriesLilith (Jan 6, 2013)

I guess that it depends on the Master Degree, not everything is going to help getting a job; and then it also depends on where you live. In Portugal, having a Computer Science degree is quite a must to get a decent IT job (it's pretty much the requirement everywhere), and having a Master degree is almost a grant (of course it also depends on which university you go). But I have a friend that is finishing Master at finances, and it's harder to get a decent job in his field.
Right now, Computer Science is one of the most job granting degrees, while there are some degrees that would not really help much at all.

As for business, you might want to think, what would make your company stand out? What values would you add for your clients? You have to think if your product/service would really be very desired, and then know how to sell it, and find the right ways and connections, the right way to make it available to the market. I'm not familiar with running companies, thought somehow I get the feeling that while reading books is important, you might want to talk to people who have some experience and see how things truly are by yourself.

Personally, I would rather invest in a degree, if I do have interest in the courses, and it can make a difference in the job market and my career life. Investing in a company of my own would be too risky, since I have no experience and knowledge/wisdom about business.

Also, you can always start saving money after earning the degree, and then start your own business after some years. By that time, you probably have gained some more insight about work, after having worked for some years?


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## Swordsman of Mana (Jan 7, 2011)

wellnowwhat said:


> Let's say I have $20,000 to invest in either attending graduate school to earn a Master's degree or starting a new business.
> Which would be the better option, in your opinion? Pros? Cons? Risks?


for a business:
- how much experience do you have?
- do you have the skills necessary to start a business?
- do you have the character to sustain a business?
- do you have a stable income from which to live on during the start up phase?
- how long do you think starting a business would take?

for graduate school:
- will the degree be relevant to your chosen career path?
- will a master's/PhD make you more money?


alternatively, have you considered investing your money? investing in, say, silver might be a good idea.


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## ThatOneWeirdGuy (Nov 22, 2012)

Just curious, but what would your business' market be?


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## wellnowwhat (May 24, 2013)

ThatOneWeirdGuy said:


> Just curious, but what would your business' market be?


I've been in IT support for awhile, so it would basically be IT services and support. I live near a college and there is only one PC support shop in town and it isn't exactly up to speed on some of the latest stuff.


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