How to Build an Executive Leadership Development Plan

Running a company involves far more than just availing a specific good or service to the public. Indeed, it also requires more than simply convincing customers of your suitability and branding.

To make your business sustainable in a highly volatile marketplace and ensure profits and longevity, your company – like all businesses – requires strategic leadership.

And the impact here can hardly be overstated. Leadership development is a multi-billion-dollar industry with countless schools, experts, and programs, and discourse awash with theories and models meant to suit businesses of all scales.

Why?

Well, it’s quite simple. Focused leadership demands long-term thinking about market needs, consumer needs, employee productivity, and of course, profits. Which, in turn, demands an important conceptual tool: a leadership plan.

What Is a Leadership Development Plan?

Understanding Executive Development Plans

Simply put, leadership development involves the adoption of certain activities in your company to improve the quality of its leadership and labor competency.

It’s the process of equipping supervisory and managerial staff with the skills and conceptual tools needed to see themselves towards sustainable profitability and success. Generating this kind of positive change within a company’s inner workings requires a well-defined plan. A leadership growth plan.

There are plenty of elements involved in such a plan, as we’re about to see, but first — some stats.

A recent survey report by PriceWaterHouseCoopers established that:

The same survey also established that while those at the helm displayed an abundance of critical thought when it came to the more analytical aspects of company management — they lacked severely in the emotional quotient department.

That is to say, they personally lacked the necessary tools to “get through” to their teams by painting as clear a picture as possible of their company vision

Most companies, even those with a solid profit record, experience substantial setbacks — particularly during periods of change (internal or external) — if not steered by well-equipped leaders.

If you’re interested in placing yourself at a competitive vantage, a leadership plan is a vital flag you need to plant to meet both human and strategic company needs. 

And, there are many potential payoffs of adopting a strategic plan within your company.

Why Is a Leadership Growth Plan So Important?

It Leads to Better Fiscal Performance

A growth plan adopted by business departments with able leaders is bound to result in better fiscal performance — the spoils of which can then be reinvested into the company.

Likewise, a well-structured leadership, innovation, and decision-making strategy is a necessary tool for senior executive management to drive up the likelihood of a company’s success. 

While it’s important to map out the right business strategy or program, both these strategies will work for any organizational structure. And they work even better when adopted simultaneously. 

In taking the time to understand what your organization needs from its leaders, you will better understand the business strategy that works best for you. These two strategies go hand-in-hand: developing one will help in achieving the other. 

Regardless of your field of business, all companies are bound to reap heavily from cultivating leadership skills within their organization and prioritizing leadership in their company culture. Senior executive leaders who have the right innovation and strategy skills inspire the same in their workforce.

It Leads to More Hands-on, Agile Corporate Management

A company with effective executive/senior management can wade through the commercial environment, complex and dynamic as it is, and come up with quick and effective solutions to problems as they arise. 

Executive leadership development equips leaders to think on their feet and adapt to an ever-changing corporate environment. 

It Helps Attract, Retain and Motivate Your Workforce

A well-structured executive leadership plan inspires active engagement from your staff. 

Well-trained senior executives are more likely to attract, keep, and appropriately remunerate a talented workforce — resulting in consistent satisfaction among staff. 

Further, an innovation and vision plan executed with the employee in mind will inspire loyalty among staff. This is particularly true of programs that provide growth opportunities for the more academically-inclined members of staff. 

An executive leadership plan that fosters appropriate communication channels within teams is bound to scale up profits within a company. 

Which is why it’s so important to foster a team of executives that can attract and retain a worthwhile workforce. 

It Facilitates Internal & External Company Communication

A company’s communication channels determine how quickly deadlines can be met, problems solved, and plans made good on. 

When your executive management team makes active steps to foster a marketplace of ideas — your company will benefit from faster task execution, a spike in production, and a more satisfied workforce. 

Moreover, the positive engagement and morale within your workforce are more likely to flow through to your customers. 

What Are the Goals of an Effective Executive Leadership Plan?

Heighten a Manager’s Sense of Responsibility

The mark of a worthy leader lies in their ability to account for their deeds (and the subsequent consequences). In short: their responsibility

This means that they can examine the outcomes of their decisions and appreciate the lessons gleaned from both success and failure. 

A leadership plan will also foster the ability to stand back and objectively assess and learn from the effects of their decisions — whether positive or negative. 

Instill Self-discipline Within Trainees 

A well-trained leader knows that tough decisions directly affecting the bottom line should ultimately benefit the company or organization rather than the individual. 

Yet another mark of sustainable executive leadership is the ability to reflectively assess all available options. And, using the right metrics and criteria, to objectively choose what’s really best for the company. 

Foster Active Communication Within the Organization

Pro-tip: Incredible ideas and hands-on mentorship won’t do you much good if your leadership’s communication is sub-par.

But the thing is, gaining the right communication skills is an endeavour that needs effort and time. 

But when adequately honed, your skills should equip you to understand how and when to use persuasion, build a rapport with your staff, understanding when and how to exercise persuasion, as well as improve conflict resolution skills.

Also, it’s vital to cultivate listening culture at the topmost rungs of company leadership. Each team member can offer the management important input that can bear directly on everyday company decisions. 

Active listening coupled with a well-cultivated space for discussion in a company will do you more good than you’d think. 

Add More Conceptual Knowledge on Executive Leadership

Leaders must be generally well-rounded; they ought to have a diverse set of skills across many competences. 

A leader who is willing to take the time to learn new fields, especially those that might not necessarily directly relate to their mandate, will certainly have an edge over most other companies and will be able to solve problems in an agile and creative way.

Improve the Trainee’s Inner Clock

The most ineffective leader is hands down the sort that can’t keep to a schedule; that’s are constantly running late on deadlines. 

A leader who is able, on the other hand, to make and stick to strict time frames is automatically a good template on which the rest of the team can model a work ethic. 

Promote a Work Environment That Fosters Mentorship

Yet another important attribute of a good leader is to foster leadership in others. 

A well-trained leader should be able to hone these skills in staff members and foster a culture of leadership development culture within the company. 

Possible ways to achieve this could be: soliciting for feedback, coaching, and imparting staff with precise skills for challenging workloads. 

Instill a Sense of Long-term Strategizing 

Two words. Analytical thinking. Good teamwork and effective problem-solving require a leader who is able to factor in the entire team in the long-term — not only immediately, but at the end as well. 

Together with the preceding points, these goals will help you determine the precise training and plans that ought to be most effective for your company. 

Examples of Leadership Development Programs/Executive Education Programs

Here are some methods of executing your leadership development plan:

Interpersonal Skills: Conferences for Executives

To cultivate a team of workers with vision in your company, you’ll need to invest in your leaders. One way of doing this is providing them with access to events and conferences that provide skills training on delegation and strategic decision-making. 

Indeed, this is the sort of thing that demands resources, both monetary and temporal, but any company that wishes to reap the benefits of a motivated and well-equipped labor force would be well advised to invest in this kind of  immersive vision and learning experience.

Other examples of suchlike leadership training events include general presentations, conference intensives, and breakout forums. These will give your company staff a chance to hone their communication, relationship and interpersonal skills. 

Strategic Exposure: Meetings, University Classes & Workshops

A well-governed company needs to be managed by a visible and involved leadership team. What this means is, leaders ought to seek out ways of applying their supervisory skills. They can do this by seeking out forums that can earn them exposure, both outside and inside the organisation. 

Your leaders must be publicly visible, but that’s often a big responsibility when they have so much on their plates already. Strategically seek out opportunities for your leaders to gain exposure. Help your leaders get used to the exposure required when spearheading company projects, both inside and outside the organization. 

What this kind of leadership exposure does is, it provides senior managers with the skills needed to address staff members publicly and give them valuable feedback when need arises. Eligible staff include corporate heads, board members, and other rank employees alike. 

Micro-Mentoring & Coaching Programs

If you specifically want to nurture a mentorship culture within your organisation, here’s an executive leadership development plan that you should definitely consider adopting: micro-mentoring. 

The objective is simple: to balance out the gradient in skills and empirical experience inherent in any workforce, only this time it works in an objective-specific and time-specific way. 

Key areas of focus depend, of course, on specialty, expertise, and the specific aspects of leadership that your company is most in need of, and are inculcated through workshops, volunteer projects, leading events, and micro-mentorship initiatives. 

Implemented with consistency, these grow into your organisation’s ethos and promote individual growth and vision.

Adoption of Interactive eLearning 

With online business tools being what they are today, peak efficient and diverse, leadership training has never been easier. 

The technical ease with which even remote-based companies can conduct interactive leadership training sessions makes this an excellent place to start for any reasonable team of corporates looking for options. 

eLearning not only enhances cohesion in an organisation, it equips workers with the necessary skills needed to monitor, motivate, get feedback from and incentive staff teams. 

Whether interactive questionnaires or scheduled video classes, eLearning tools have the ability to elaborate on a company’s objectives in all departments, with ease. 

Interactive eLearning is also an excellent way to instill in your leaders a lasting sense of feedback analysis, allowing them to carefully analyse problems and decisions when the need arises.

Community-Involved Training 

An executive leadership plan should also make a point of affording your leaders an opportunity to make a positive contribution in their nearby community. 

A well-run organisation knows that leadership doesn’t cease when everyone checks out after a good day’s work. On the contrary, community projects are essential for your organisation’s local reputation and it will help reinforce a positive moral ethos in your leaders. 

Allowing your leaders to do pro-bono work; allowing them to take up projects that involve local charitable communities; all these things go a long way towards giving your leaders actionable hands-on experience. 

Creating Your Leadership Development Plan from Scratch

Drafting the Executive Leadership Plan

The first thing to keep in mind when building an executive leadership plan is that it ought to bear relevance to leaders at every level of your company. This ensures your leaders are always performing optimally. 

The Ariel Group, which has co-drafted executive education plans across many industries for over twenty-five years, lists six important steps for drafting an executive education action plan and measuring its success.

Here’s where you should start:

  • Outline the most important leadership qualities

You will do this by writing a list of the leadership skills, abilities and competencies that ought to be embodied by a great leader. Afterwards, you should solicit senior leadership management for feedback about the drafted list in order to find out which skills are most needed for your organisation.

  • Focus on core objectives

Here, you need to outline the primary business goals you are focused on achieving in an easy but thorough manner. For instance, an objective could be: To achieve a 25% increase in total sales after two quarters.

  • Assess the requisite leadership skills 

Here, you need to identify the precise skills and talents that need to be cultivated at your organisation, so that it can meet key business objectives. The way to do this is to conduct a leadership skills assessment. 

You will achieve this by speaking with leaders to find out what they feel they need to be more successful, as well as gathering insights from staff teams regarding their leaders. 

The requisite feedback can then be gathered through a range of different mediums: face-to-face feedback, administering questionnaires, email, and anonymous feedback. 

  • Develop a list of executive education objectives

Here, you will use the format adopted in the skills assessment as well as the feedback gained about the most needed skills in your company. 

And from this you will draft a list of outcomes that you envision for your development plan. 

  • Identify the best methods to achieve your leadership action plan objectives

Some things you should consider when deciding upon your preferred method of execution of your leadership development plan objectives include: selecting the right content as well as the right training criteria. Be it group coaching, one-on-one coaching, in-person teaching, self-paced asynchronous training, or virtual classrooms. 

You might perhaps find it more efficient to invite a third-party consultant that specifically deals in  leadership development programs of your sort. They’re usually better equipped to quickly find the right content and formats for the training programme. 

  • Measure the effectiveness of your leadership development plan

It is vital that you have a precise criteria in place for measuring the eventual effectiveness of your leadership development plan. 

Likewise, your employees are a vital asset in feedback analysis. Their sentiment will help you determine the overall progress of the departments in which the executive plan has been adopted. 

Your Leadership Development Plan: a Useful Template

For a quick peek at how you should plan out your program, check out this template. 

Get Your Head Start at Quantic

Quantic is an excellent avenue for leadership programs tailored for all business owners, both aspiring and established.

Our courses are well-regarded among some of the most reputable hirers — and that is exactly why they’re included in most tuition reimbursement programs. 

Some companies that have leveraged Quantic’s tuition reimbursement program include: 

  • American Express
  • WeWork
  • S&P Global
  • Grant Thornton
  • Farmers Insurance

Why, you ask? Well, the reasons are quite simple.

  • Quantic’s programs enhance company talent

Our MBA is bound to elevate your top current and potential leaders, upgrading their performance to more senior roles to support your company growth.

  • We are fast and flexible and our courses lead to higher retention

Invest in your top employees to signal your confidence in their potential and your commitment to their success; you’ll cultivate loyalty and retain them longer.

  • We offer a high ROI and affordable tuition

Primarily delivered online, our best-in-class MBA programs are designed to provide incredible learning at a fraction of the cost of traditional top business school programs.

  • And, of course, we offer an up-to-date accredited degree

8 Employee Engagement Strategies for 2021

Seeing your engagement strategies fail and your operational systems run amok is nothing new in times of change. Significant shifts in the labor market only exacerbate issues. 

The great arena where corporations and top talent have been matching strengths has kept us on the edge of our seats for decades. Lately, it seems talent has been on the winning streak.  

The rat race for the top-skilled workers is harsher than ever, and employee turnover is as expensive as it ever was.

Thus, it doesn’t surprise that employee engagement is top of mind for most HRs and higher-ups.

But how do you stay on top of all your HR challenges and improve employee engagement? 

Our 8 employee engagement strategies for 2021 are bound to help. We’ve curated only the best content from leading industry sources to provide you with the best solutions.  

Let’s dive right in. 

What Is Employee Engagement?

Employee Engagement Definition

Employee engagement often gets mixed up with job satisfaction, but they’re not equivalent.

Satisfaction is the feeling of personal happiness and contentment with a job. Engagement has more to do with a proactive approach and the level of motivation. 

It’s a commitment to the organization and the driving force behind employee performance.

The Employee Engagement Model

It’s difficult to find an effective employee engagement model that works. Senior leaders are facing a host of challenges — not just having their newly trained workers poached by other firms. 

Other issues include active disengagement and the demands for improved leadership.  

The stats below will help you gain a better perspective into what drives people in and out of companies.    

So, how do you address those challenges?

First, you need to understand the key drivers of employee engagement in your organization.

To do this, ask yourself the following questions:  

  • How do employees connect and engage with the organization as a whole? Does your company culture nurture fairness, trust, and respect?
  • How do employees connect and engage with direct managers? Do they receive fair treatment and good direction from them?  

Below, we show both organizational and managerial factors in more detail. 

Saying a positive work environment and good leadership are key to engaging employees is being too vague. 

You need to build a model that makes sense for your organization. Let’s break this down.

The Employee Engagement HR Function

Although the manager role is critical in this department, the HR team has a decisive role in improving levels of worker engagement.

HR professionals should lead the charge here within the scope of their responsibilities. Namely:

  • Onboarding. Onboard applicants who fit into the proactive workplace culture. Select those with competencies that match your organization’s growth and sustainability goals.  
  • Training and development. Offer employee benefit programs and training to attract talent and supercharge your team.
  • Performance management. Keep goal alignment front and center. Set workers’ goals strategically and provide clear feedback.

Why Is Employee Engagement Important?

There are plenty of reasons to adopt targeted practices to improve employee engagement. Yet, it’s a missing link in many organizations. They go without any systematic approach.

“Just 26% of leaders surveyed say that employee engagement is a very important part of what they think about, plan, and do every day. Another 42% say they work on it frequently, and the rest only occasionally, rarely or never.” Source: Hubspot 

There’s a strong business case for adopting continuous initiatives in this field — plenty of industry data points toward significant employee engagement gains.

Organizations with an engaged workforce:

  • Demonstrate superior performance. 
  • Have a higher earning per share.
  • Recover more quickly following financial setbacks.
  • Are more likely to attract and retain top talent. 

Employee Engagement Goals and Objectives

Your employee engagement initiatives should work towards concrete, well-defined objectives.

Only after you’ve defined them and put them in the pipeline can you measure the success of your efforts.

Engaging your employees can serve some of the below listed high-level corporate objectives:

  • Increase employee retention
  • Increase productivity 
  • Increase employee happiness Increase customer satisfaction
  • Improve organizational culture 

Start small, pick a few relevant objectives, and break them down into task activities. This way you’ll be able to gauge and manage results without splurging your resources. 

Employee Engagement Best Practices

As Douglas Conant, American businessman and Campbell Soup company president and CEO, aptly put it:  

“To win in the marketplace you must first win in the workplace.” 

Your workforce is your most valuable resource — you might as well treat it as such.

Below are actionable tips on how to create a highly engaged workforce.

How to Engage Employees

1. Foster Your Company’s Core Values

Your core values should be at the heart of your company culture — and here’s the how and why of it. 

Employee surveys show Millennials seek jobs and careers they find meaningful and engaging. 

Just a reminder: by 2025, Millennials will represent up to 75% of the global workforce. That said, the topic of creating a purposeful work environment deserves serious thought.  

Articulate your company core values and you’ll create a cohesive workforce gathered around common ideals.  

Your values should serve as a backdrop for everything you do as a team. Here are a few ideas:

  • Create a company mission document and put it out to new hires to keep them in the loop from day one.
  • Launch an internal company newsletter.
  • Make this topic a staple of your all-hands executive presentations. 

 2. Create a Culture of Respect

In the grand scheme of things, people love to be respected for the input they make and ideas they propose. So, a good culture of respect includes a good level of dialogue and openness

Organizations that are great at employee engagement are employee-centric cultures. 

21st-century workers value diverse and inclusive workplaces above all else. It’s what a person brings to the organization that counts, regardless of their sex, age, culture, or religion.  

Below are a few initiative ideas: 

  • Teach your recruiters and managers how to deal with unconscious bias.
  • Comb through your executive team: are they acting on values of respect and diversity?

3. Provide Opportunities for Growth

Many organizations already offer valuable strategic compensation to encourage incentivized behaviors. However, skill development training is where you should look for long-term organizational benefits. Upskilling your employees has proven benefits like improving retention and keeping your team motivated. 

Here’s some hard data to support this claim. 

94% of employees would stay at the job longer if the company offered more opportunities to advance their careers. 

By providing growth opportunities, you’re announcing your organizational values to the world.  

Top performers want to get their hands on marketable skills. They work towards earning more senior roles — so you may as well give them what they want. 

Here’s how: 

  • Set quarterly or monthly learning and development goals for each team member. 
  • Design transition management programs to encourage promotion from within.
  • Give people time to learn (this is the number one barrier people state in surveys).
  • Include attractive coursework as part of a compensation and benefits package.  

Tuition reimbursement is a great way to retain team members at the executive level. It’s how you nurture great leaders and encourage other team members to aim for more senior positions.

Quantic’s Executive MBA Tuition Reimbursement Program is a premier graduate education option. By providing your team with an MBA degree, you create excellence in leadership.

This program is attractive to organizations because it offers:  

  • True career acceleration empowerment. The program is designed to educate business leaders and empower them to work towards key business outcomes. 
  • Proven career outcomes. 94% of our alumni say they met their career goals post-graduation.
  • A seamless time-saving program. Our MBA program is designed to create minimal disruption; your employees complete courses without compromising work.
  • An excellent alternative to Ivy League MBAs. In a standardized test, Quantic learners performed as well or better than MBA students coming from the top 10 business schools.

Here’s what others said about us: 

4. Be Clear About How Your Employees Fit in the Big Picture 

First off, high-performing workers are those that clearly understand their role. Being just a cog in the machine is unlikely to engage anyone. 

Next, if you want your staff involved in achieving organizational goals, they need to know what those goals are. Letting them know how their role plays out is paramount.

Providing a clear vision from the top down is the most effective way to increase engagement organization-wide

Hold regular meetings to help the team stay on top and discuss how each member contributes.

5. Recognize Top-Performers

Want to produce new top performers while also encouraging existing ones? Here’s a good incentive: recognize individual achievements.  

It’s understandable — people are unlikely to perform better if their good work is ignored. 

However, it’s nothing some good management can’t fix. 

Putting efforts into creating reward and recognition programs is a great way to fire up your team.  

  • Put your managerial hires through Employee Recognition Training.
  • Set up an employee Service Awards Program.
  • Create a Peer-to-Peer Recognition Program.

6. Foster Great Management

Engaged employees feel their work helps the organization achieve long-term goals. 

Good management is one of the key drivers of engagement. Everyone’s work relies on the management’s success in guiding and aligning their people.

That’s why your investment in managerial teams measures in improved retention, performance, and engagement.

With that in mind, there’s always room to improve:

  • Implement empathy training for managers.
  • Use employee surveys to evaluate managerial effectiveness. 
  • Have regular one-to-ones to help solve issues on the go and inspire managers to do their best.

7. Encourage Two-Way Communication 

Skill development training, self-efficacy, and recognition aren’t the only ingredients of job satisfaction. 

Allowing honest employee feedback is also high on the list. Employees who are free to voice their opinions to their higher-ups feel valued.

Being attentive to your team’s feedback improves their commitment to your organization. Below are some ideas on how to improve your communication: 

  • Promote feedback channels across the board and encourage team members to share thoughts and ask questions.
  • Give prompt answers and act on employee feedback. 
  • Give shoutouts when someone’s suggestions or ideas are implemented. It’s an excellent way to let your team know about the impact they make. 

8. Empower Your Managers to Coach

Lastly, initiating a mentorship program is one of the best things you can do to boost performance.  

A coaching culture has been known for its strong impact on an organization’s health. Yet, many managers are missing the point of seeing supervision as their key responsibility. 

Their greatest contribution comes down to coaching employees. 

That said, empower your managers to coach. Inaugurate coaching as one of the official goals for your managers’ performance evaluations.  

One big plus of this is that the attitude of an engaged manager will rub off on the rest of the team. 

Build Your Employee Engagement Plan

So, how do you build your employee engagement plan? The key is to narrow down and decide which drivers of employee engagement you want to focus on.

Breaking them down into categories will help you identify areas of improvement. You can add or remove categories on the below chart, depending on your organizational needs.

To start carving out your employee engagement strategies select one of the categories. 

Take “Goals & Alignment” for example, then work your ideas through the list of questions below:

  • Do we have specific initiatives that support this driver of engagement? 
  • Will addressing this area solve some of our burning issues?
  • How can we improve in this area?

Once you’ve identified areas that need immediate attention, start building a systematic action plan around them. 

Pro Tip: The most successful employee engagement strategies are intentional and data-driven. Administering surveys will help you reach better decisions about which initiatives will truly serve your organization.  
Use engagement and pulse surveys to find out what makes your employees tick. Also, make sure to follow up on the results.

Employee Engagement Strategy Examples in Action

Employee Engagement Strategies During COVID-19

The COVID-19 situation forced organizations to reevaluate their employee engagement practices. The most critical insight: your remote work protocols need to meet your employees where they are. 

Your team needs to adopt the new remote practices. The ideas below will help you buffer any negative effects and transition to remote work. 

  • Reinforce leadership communication. Put your efforts into digital communication so you can cascade information effectively. 
  • Manage outcomes rather than inputs. Your teams may need more support under current circumstances. Outline desired outcomes but make sure to recognize efforts over results. A level of empathy is important until people gain momentum.  
  • Allow uninterrupted feedback. Communication is now more important than ever. Actively seek feedback from your team. Use video conferencing to course-correct and help them achieve outcomes.

Companies That Nail Employee Engagement

Care to learn about a few successful examples? Below are companies that nailed it with their employee engagement initiatives.  

  • CB Insights. This NYC-based market intelligence company offers a $1,000 education stipend to team members that hit the six-month mark. It hosts a quarterly female-focused professional development lunch and monthly management training. 
  • Subsplash. This innovative company features the “Animal of the Week” employee recognition initiative. Exceptional individual achievements are recognized at a weekly all-hands company meeting. Behavior aligned with company core values (humility, proactivity, and excellence) is especially cheered on. 

Successful Employee Engagement Programs

The higher-ups want to see employee engagement initiatives that drive results. Being clear on the objectives is a good place to get started, but seeing how others are doing it weighs in too. 

Below are some organizations that get results from its employee engagement initiatives. 

  • Caterpillar, a construction-equipment company, has seen considerable benefits from their employee engagement initiatives. They resulted in $8.8 million annual savings from decreased attrition, absenteeism, and overtime in their European plant. 

They’ve also seen a 34% increase in satisfied customers in their start-up plant.

  • Google and Intel are another shining examples. They’ve introduced this remarkably agile goal-setting process called OKR (objectives and key results).

The team members set their individual goals and outline their “key results.” These are, in turn, used to monitor employee progress. The framework creates clarity, alignment, and easy performance measurement.

Your Employee Engagement Action Plan

So, how do you put into place your own successful initiatives? 

First, the leadership and HR settle down on one area of focus — for example, growth opportunities. Then, an action group gets on writing the action plan.

Here’s how it looks: 

  1. Recruit a team responsible for leading the action plan.
  1. Determine the budget and timeline and schedule regular meetings for the action group.
  1. The team then develops a plan. They create a list of options for their prospective action plan. 
  1. A report is created and presented to the leadership. It includes a timeline, expected costs, and the projection of the outcome.
  1. Next, the leadership adopts the plan, makes adjustments, and approves the budget.
  1. Finally, the team gives regular presentations to update the leadership on progress, until the project is completed. 

Next Steps

Implementing on-paper employee engagement strategies takes effort. Yet, there’s a compelling business case that pins down considerable employee engagement gains. 

Laying out a clear path for your initiatives is the best way to ensure their success — and now you have the tools for it. 

Launching a tuition reimbursement program is a great way to get started. Make an Executive MBA degree available to your employees and you’ll be putting your organization on the map

Doing so empowers you to retain team members at the executive level and motivates managers to achieve their career goals. 

Quantic School for Business and Technology offers a free online MBA that can help you attract new hires and produce future business leaders starting from today.

Quantic Trailblazers: Iditarod Musher Paige Drobny

Executive MBA Student, Paige Drobny, was born with a love of animals. Her parents couldn’t keep the frogs and crickets and small animals out of the house. She got her first pet, a cat, at the age of three and there were a slew of house pets and barn animals that came after that. Fast forward to 2021, and she is now competing in her seventh Iditarod with a team of incredible sled dogs. 

“I never heard of the Iditarod when I was a kid,” says Paige. “I never dreamt about going up north. It never occurred to me that I wanted to race and I never thought I would be doing this, but I was always drawn to the outdoors.”

Paige’s love and respect for the outdoors has only grown stronger since she moved to Alaska in 2001. She loves the wilderness and wouldn’t want to live anywhere else. Since the state has eight to nine months of winter each year, residents need to find ways to keep active in the snowy season. That’s when Paige first discovered dog sledding. 

“Fairbanks is unique because many people have small recreational kennels,” says Paige. “Most people I know have dog sleds. It’s a way for people to get around and get out.” The first time Paige contemplated getting on a sled is when her husband and business partner, Cody Straith, made her one for Christmas.

“I gave it to her for Christmas and said ‘maybe we can get some more dogs,’” says Cody. “I went to visit my family a week before the holiday and when I came back she had already gotten three more dogs. Then we could officially use the sled.” 

“We actually talked about dog sledding in retirement,” laughs Paige. “We thought it would be a way to stay active when we were older. I always wanted a ton of dogs. We attached them to the sled and off we went. I was hooked from the get go.”

Since that first moment of jumping on a sled, Paige has become an extremely accomplished musher. Besides this being her seventh Iditarod competition, she is also a five time Yukon Quest and Copper Basin Musher.

“I knew Paige was a driven athlete back in 2010,” explains Cody. “She had just finished her first 300-mile race. She got to the finish line and just wanted to keep going. She was just having a great time and wanted to continue.” 

Paige’s ambition is apparent both on and off the sled. She is the owner and operator of Spearfish Research, where she is a biological consultant, and her and Cody run a successful kennel, dubbed Squid Acres, an homage to Paige’s work consulting for fisheries. The couple purchased a lodge off the Denali Highway (one of the most remote and scenic highways in the world), and are expanding their business into a high-end tourism retreat where people can learn about sled dogs and the Alaskan environment. “We’re on thousands of acres of wilderness. We can show people the real Alaska,” says Paige. 

To get her new venture off the ground, she needed to equip herself with a strong foundation of business development and operations. She needed an MBA education, but needed a program that would be flexible enough to accommodate her chaotic schedule. That’s when Quantic came into the picture: “I wouldn’t be doing an MBA if it wasn’t for Quantic. I love Alaska and I have 50 sled dogs that I can’t leave. Being able to stay home and take care of my dogs, and run my other businesses, wouldn’t be possible without the mobile platform.”

Both Cody and Paige have a background in science. Since joining Quantic in October 2020, the courses have already helped Paige with the accounting side of her new business, and she’s looking forward to learning more about marketing. Always eager for a new challenge, Paige admits, “I’m really excited for the marketing course. It’s not my skill set at all. Business Law, too, I’m excited to learn about the proper way to expand in this new industry.” 

Being a newcomer to the tourism industry doesn’t faze Paige, in fact, she says it excites her. And if mushing has taught her anything, it’s that no challenge or obstacle is insurmountable. “Running dogs can be chaotic. There are new obstacles all the time. You need to be calm, cool, and collected. You can’t dwell on the missed corners and wrong turns, you have to learn your lessons and apply them the next day. The business world is the same. You learn from your mistakes and succeed.” 

It’s safe to say the dogs instill a sense of positivity in Paige’s racing and, in general, influence her optimistic outlook on life. “Living with dogs is just one giant lesson. I learn something from them every day. They’re happy, they live in the moment, and every day is exciting, and offers new opportunities. When you hang out with a bunch of dogs, you can’t have a bad day.”

The 2021 Iditarod kicks off tomorrow morning, Sunday, March 7. This year’s multi-day sled dog race across Alaska has some major changes planned, due to the COVID-19 pandemic, but as always, Paige is ready to roll with the punches. Participants in this year’s 860-mile course will instead race in a loop that begins outside of Anchorage and eliminates many of the stops traditionally required in previous Iditarod races. The teams will travel from Deshka Landing to Flat and then loop back around and return the same way they came, rather than continuing northwest toward Nome.


The Quantic community is excited to cheer on Paige and with her positive attitude and determination, we know she is going to be the leader of the pack. Be sure to follow Paige’s race journey on our social channels. We’ll be tracking her progress and hearing from her throughout the course!

Expert Advice: Tips to Turn Your Dream into a Business

Quantic Alum, Dr. Lisa Bélanger is a keynote speaker, author and behavior change expert. She teaches professionals about healthy habits, mindfulness, productivity. Besides her accomplishments of running the Paris marathon, climbing Kilimanjaro, and being the mom of two wonderful children, she is also the founder of ConsciousWorks, an industry-leading consulting firm that integrates proactive mental health and performance strategies by applying cutting-edge science to strategically improve behaviors, engage leadership influence, and shift cultures. 

What ultimately inspired her to take the leap and launch her company and what advice does she have for new business founders? Dr. Bélanger gives us her top tips to create a successful startup. 

What inspired you to create ConsciousWorks? 

While I was consulting and researching corporate wellness, I realized that most programs lacked strategy, behaviour change support, and well-defined metrics of success. For the most part, there is little to no science behind how we work. There was an opportunity to leverage science to the mainstream to unveil ways to work better. I knew the potential that lives within a company to not only impact personal behaviors, but also leverage social support through a well-designed program, and create long term, sustainable change. 

Your company’s core values are important for your mission. How did you build these and how can someone determine their own for their startup or new business?

Our core values were determined a few months after the business started, and it was an activity with the whole team. For our team, we were very aligned in terms of individual values and where we saw the company. The company values can really be what you want to be known for, and would be represented in potential employees and future partners. 

What advice would you give to someone just starting to draft a business plan? 

Be ready to pivot! My business plan was finished just weeks before the pandemic and then we went into a complete shutdown. The plan was placed directly in the garbage and re-imagined. In the past year we had to respond to the changing world and try to plan through the uncertainty. An agile business plan became a requirement.

What resources did you need to launch your business?

My primary and more important resources are the incredible team I work with and a solid wifi connection. 

Where did you find it most important to invest your time and energy? 

In relationships: with my team, with partners and with clients. I believe this is always a large part of business, but during the pandemic it has involved creativity and a conscious effort to collaborate remotely. 

What advice would you give to someone for setting their future company goals? 

Connect your goals to your purpose. Know how they intersect with the big picture, then, create a system to achieve them. Move towards that goal every single day. Even if it is just 1% – after a year you are 365% closer. Your goals are as strong as the systems you create. 

What mental health advice would you give to someone dealing with the stresses of setting up a new business? 

In a new company there is always something on fire, deadlines, and inevitable pressure. There are more ups and downs than you can imagine – so create a system to rest every single day! Rest is not a reward for when the work is done, it is a strategic behavior for longevity. 

Also, get a mentor! Someone further along in the entrepreneurship process. I realized quickly, that entrepreneurs are often the only people who ‘get it’ and are great sources of connection. They can provide support for both the emotional and tangible starts to a budding business.  

Want to hear more proactive mental health techniques to become your best self and reach your highest potential? We recently worked with Dr. Bélanger to launch a podcast called The Science of Work, which examines top business leaders’ advice, research, and current trends that are shaping today’s workforce. Tune in to learn more!

Series A, B, C, Seed | Startup Funding Rounds Expert Guide

It’s a well-known archetype: the business idea so brilliant, so innovative, the sort that comes but once in a lifetime. A business idea that’s so actionable, it can scrabble its way up from a fledgling startup and blossom into a sizable business. 

Most aspiring entrepreneurs believe that if they can carry themselves safely through and past the first fiscal hurdle of initiating a startup, it’s smooth sailing from then on out.

Indeed, it’s not atypical for some to entertain expectations that their business can spontaneously grow itself into a big enough scale by merely maintaining a firm foothold on the market. 

Time will see us through.

We’ll be honest: It can happen, but it rarely ever does. Especially not in the current startup market. Such a growth model only ever happens to startups that involve the innovation (and often, indeed, invention) of a truly revolutionary product. Something Zuckerbergian, if you will. 

The truth is, most successful startups today are a result of meticulous funding from external entities done in well-planned, recurrent stages. This leads us to our first point of departure into what we’ll elaborate on today. 

Funding rounds for startups.

So, What Are Funding Rounds?               

Perhaps you’ve heard someone say, “We’re setting our books for our second funding round,” or something similar.

Funding rounds are the most surefire way to see your startup through its inception stage into the actual business. It involves consolidating money from angel investors at intervals, depending on what stage your business is at.

Of course, the upside for you is that you get to inject decent capital into your business while simultaneously growing it. Meanwhile, your investors gain the opportunity to put their funds into a worthwhile and promising fledgling venture. 

For a big enough investment, the angel investor will earn some equity in your startup or an actual cut of your proprietorship pie. 

If you’ve heard people talk about angel donors or “seed” funding, these are usually startup proprietors at the very start of the funding process.

However, as the startup grows, both in market share and investment potential, they gain access to different (and often higher) tiers of funding. 

Series A funding, Series B, C, and even D — you will likely deem multiple rounds of funding appropriate should you feel that your startup has grown into its own.

Today we’ll take an in-depth look past the startup jargon and into these funding tiers: see what sets them apart and investigate the differences in timelines across different fields. 

Depending on your startup field or how actionable it is in today’s market, it might take eons to get any decent funding. Or you might skip easily through the rounds and into IPO-level revenues.

Call it the ABCs of startup funding. 

Pre-Seed Funding for Startups

To get a good grasp of what seed funding is, we first need to understand how you work up to it.

Before any external investment can be accrued, a startup will have to do some initiatory branding. Something that validates itself as an entity, a work-in-progress.

Any money raised by the startup proprietors will usually not be included in the rounds themselves and will typically fall in the pre-seed funding stage

It typically covers the costs needed to get the business started.

Other than the business owners, other qualifying pre-seeders might include close friends, family, and other acquaintances close to the proprietors.

Again, the speed at which a startup can successfully propel through this stage will very much depend on your startup’s field of trade as well as its initial costs (think: branding, initial capital, et al.). Monies given at this stage are generally motivated more by well-wishing and gratuity rather than genuine investment intentions.

By this stage, you as the startup proprietor ought to have a clear and detailed business plan and were likely already required to register the company. 

And that’s not all. Your name and identity should be ready and well-defined, as with your company’s human resource structure; your intellectual property is legally protected, and your licensing all done and valid.

Depending on your circumstances (more accurately, the circumstances of those you hope will make initial contributions to your business), you stand to inject an average of anywhere between $10,000 to $200,000 into your startup during this round of funding. For this sum, you will generally expect a 2% to 10% exchange for equity.

How to Prudently Fill up Your Pre-Seed Chest

  • Make sure to spend a good portion of your pitch elaborating on your “anti-fragility” plan.
  • Come up with a compelling reach-out boilerplate message.
  • Be patient, but also persistent. Progressing successfully into the next level round will require some tenacity. 

Seed Funding Round 

What Is the Seed Round?

While the pre-seed funding round helps fund the business idea, the seed funding round helps raise working capital for the already founded business.

This is usually the very first and most crucial round of startup funding. The intention is to use the investment made here frugally and prudently enough to grow the startup and gain the necessary traction to level up into bigger investment influxes.

For many startups, this also usually marks the end of the road for seeding. Why? Either the startup stagnates, slowly faltering until it somehow manages to gain further investment — or the startup proprietor decides to let the business sustain from its current level of revenue.

Investment & Valuation in the Seed Funding Round

The process of investment here is alluded to in the very name of the round. 

As long as your “seed” is well cultivated and the surrounding conditions are suitable for its germination, then a startup at this stage stands at a pretty promising vantage — if it can earn enough money to get itself off the ground.

The first step here is usually an official valuation of the company’s worth. Different aspects of the company are fiscally assessed: its accrued revenues, its risk quotient, the market size, human resource scale, its management track record, and its price-to-earnings ratio.

After this is done, the startup can open itself up for investment from incubators, friends, family, professional acquaintances, venture capitalists, and other angel investors. 

Again, the amount of accruable capital here varies hugely across companies, but a range of $50,000 to $2 million is apt.

Differences Between the Series A and the Seed Funding Round

  • Series A funding comes after a product has been launched and generated a reasonable amount of traction.
  • Seed funding goes to product development and market research, while money invested in Series A is converted into actual working expenditure.

Series A Funding Round

The Series A funding round represents the beginning of an upward trajectory for startups that can graduate from the seed funding stage into larger, more consolidated investments.

Financing & Valuation in the Series A Round

In this round, investment isn’t made only based on an idea’s brilliance or a business plan’s future potential. 

No, the numbers at the Series A round of funding demand that the proprietor demonstrates first, the product’s scalability across different markets; and second, a well-thought-out strategy for capturing and maintaining a healthy market share for the long term.

During this startup funding round, it’s not unusual for interested angel investors to engage in some pitching of their own. Attracting the right angel investors might earn your budding venture access to even larger equity investors. 

This can result from nothing other than the association’s credibility, but it can also come from active lobbying by the institutional investors.

Investors in this stage will more often than not tend to be old-style venture capital firms and private equity investors. They will typically be on the hunt for startups that value in the millions to the tens of millions of dollars.

Money raised in the Series A round typically varies between $1 million to $20 million. 

Differences Between Series A and Series B Round

  • While the Series A funding round might, in some instances, be held for startups that are still in their inceptive stages, Series B funding is always used to scale up production.
  • The equity to which angel investors might feel entitled is higher in Series A than in Series B. This is because the company is generally at a way better fiscal vantage by the next-level funding.

Series B Funding Round

The benchmark based on the demarcation between Series A and B can be summarized by the phrase: “aggressive expansion.” 

In this round, funding is gathered to move the company past its budding stage. Startups that make it to the third main funding round have most likely accumulated a decent customer market share and have indicated to their investors an ability to scale extant market demands.

This is usually several years in — maybe five. Talent gathering, development of a solid marketing scheme, and consolidation of the right technology will primarily occur in this round.

Investment & Valuation in Series B Round

The average value of a business that’s well into the Series B round ranges between $20 million to $50 million. The capital raised during this round of funding averages out at slightly over $30 million.

That said, with the tech bubble being what it’s been in the past decade, these numbers are bound to rise, most especially the average value of a company seeking to attract Series B-level investments.

Differences Between Series B and Series C Round

  • Unlike Series B, workforce expansion, technical outsourcing, mergers, and acquisitions tend to take place in Series C as does expansion to international markets.
  • Unlike Series B and all of the initial funding rounds, there is no limit to the amount of capital influx that’s investable in the Series C round.

Series C Funding Round

By the Series C funding round, the venture is no longer a startup. It’s a well-established company with many years of service under its belt. 

For most stage companies, even the largest firms with billings in the hundreds of millions, this is usually the final round of financing. 

In this round, funding is sought to help complete scaling into international markets, manufacture and release new products en masse, and even buy up emerging competitors. 

The proprietor at this juncture might also feel confident enough to start preparing his startup for an IPO.

Investment & Valuation in Series C Round

At this round, the investors will generally be large corporate entities: private equity stage companies, financial investment firms, and private hedge funds.

The average value of companies that tend to run a Series C funding round is $118 million, but the current valuations as they stand today are usually higher.

This is because, unlike in the preceding stages, investor funding is based not only on the brilliance backing the company but also on actual hard data.

The preponderance of a company’s successful financial track record: consistent revenue growth streams, strong consumer & market share base, accounting reports; all these go a long way to gaining access to Series C-level funding.

Series D Funding Round… and Beyond

Financing in Series D Round

The motivations for running a Series D funding round are usually to prepare the venture to go public. Specifically, to make one final push to boost the company’s valuation as far as possible before the IPO date. This is the most typical reason a company will opt for this round.

Alternatively, a company might press on with the funding acquisition because they have failed to reach their intended financial targets in the initial rounds but still wish to ready themselves for a public offering.

In this case, the company will delay opening and opt to stay private while doing their best to try and achieve their investor valuation targets. 

To do this, though, they will often have to continue with the funding rounds — into Series E, F, and G even, as well as the private equity funding rounds — until they reach an appropriate vantage to go public. 

If this occurs, this round is referred to as a “down round” since the startup will usually have their work cut out for restoring investor trust.

That said, numerous companies have seen themselves through down rounds and into public success, despite initial setbacks. 

A notable example is Couchbase, an interactive database software service, which saw itself raise more than $100 million in its final stages of funding, despite many disruptions that were out of its control.

How Quantic Will Help You Master Your Startup’s Funding Rounds 

Unlike the creative and riskier aspects of startup proprietorship, funding your business efficiently is more a science that requires evaluative skills as well as the analytical mind to attract investors. While still being able to draw up a decent enough contract that won’t leave you without the startup in the first place.

Here at Quantic, we offer consummate programs practically tailored for the aspiring business owner looking to acquire just these skills.

For starters, Quantic’s online MBA program has proven to be a game-changer in many of our alums’ business careers, and we’re not the only ones saying it. Our premier 13-month degree program is designed for mid-career professionals. 

It integrates collaborative group projects with our rigorous MBA curriculum and is enhanced with specializations in management, leadership, and advanced strategy. 

And you don’t have to take it from us. Vay Cao, an alumnus of Quantic Business School and founder of Free the PhD (an advocacy and career development platform for PhDs) has promising things to say about her time at our campus. Check out this case study we conducted on her work and startup.

The Benefits of an MBA for Startups and Entrepreneurs

Common folklore surrounding what it takes to start a business is awash with one familiar motif: the dropout-turned-billionaire entrepreneur. 

Indeed, when enterprising individuals come of age and start contemplating business ideas, their dreams often adopt this narrative.

For a long time now, a contrast has been cast between two groups of people. In one corner, those who spend a significant part of their lives furnishing their educational backgrounds. And in the other, those who choose to act on their entrepreneurial dreams.

Still, many aspiring business owners have pursued a Master of Business Administration. They’ve done this to better equip themselves in their role as startup runners.

The evidence supporting this trend goes beyond the anecdotal. 

For this reason, we think it’s important to understand what use an MBA could be to those in the startup world — whether well established or still aspiring. 

Is an MBA Worth it?

What’s the Remuneration Like as an MBA Holder?

First off, is getting an MBA worthwhile to your earnings? 

QS World Rankings conducted a survey to assess the revenues earned by entrepreneurs holding an MBA. The pay averaged $106,000 per annum, without aggregation across regions.

Here’s a more specific lowdown of the yearly revenue across countries:

  • USA: US$ 102,100 per annum
  • Italy: US$ 86,400 per annum
  • France: US$ 98,500 per annum
  • Germany: US$ 77,200 per annum
  • Switzerland: US$ 123,500 per annum
  • The UK: US$ 92,400 per annum
  • Singapore: US$ 82,700 per annum
  • Australia: US$ 98,400 per annum
  • Canada: US$ 99,800 per annum

Promising, no? It even makes the prospect of repaying your tuition loan a little more plausible.

But here’s the rub: Pursuing an MBA is quite an investment. The fees can get pretty steep. 

Especially if you opt for an ivy league school — most of which offer a curriculum no different than any other university.

That said, the investment of pursuing an MBA is worth it. And to prove this, we’ll look at five of the world’s most renowned MBA holders.

Four of The World’s Most Renowned MBAs

Michael Bloomberg

An American philanthropist, former politician, and business magnate, Michael Rubens Bloomberg is well known within entrepreneurial circles. 

He’s the sole owner and founder of Bloomberg LP, a company that supplies financial data to investment companies and other entities.

He currently has a net worth of $40 billion and earned his MBA in 1966.

Phil Knight

Are you filled with gratitude for your Nikes and have perhaps wondered in the past who to thank? 

This is the guy. 

To say that Phil Knight’s shoe brand has been successful is quite an understatement. It started as a small shoe retail outlet in 1964. And under his long stewardship, it has grown into a billion-dollar conglomerate.

As an individual, Phil Knight is worth well over $45 billion. He owes his business acumen at least partly to his MBA, which he acquired in 1966. 

Melinda Gates

Perhaps one of the world’s most well-known philanthropists, Melinda Gates has carved out her niche within the business management world. 

She graduated with an MBA in 1987. Since then, she has worked with Microsoft and the charitable startups she co-chairs, including the Bill and Melinda Gates Foundation. There’s a long list of entities to which she has dedicated her entrepreneurial expertise.

Tim Cook

Tim Cook took up the role of Apple CEO following founder Steve Jobs in 2011. Those were some pretty big shoes to fill, to say the least.

Since then, he’s not only made good on Jobs’ vision for the largest tech conglomerate in the world — he has also steered Apple away from ethically grey manufacturing practices. 

He’s been featured multiple times on the list of Fortune 500 CEOs. And is well known as a torchbearer for equality and civil and LGBT rights within the mainstream tech world. 

Important Things to Consider Before Enrolling in Business Schools 

How Long Is the Program?

The length of your program determines how quickly you will resume your entrepreneurial work. It also determines the density of your course requirements.

In colleges with shorter entrepreneurship MBA programs, students will typically spend six hours per day studying in class. While in programs of standard length students will typically spend half that: approximately three hours.

Though it varies between colleges, an MBA program runs for an average of between 11 and 16 months. 

Where Is the Business School Located?

Your location determines the availability of your chosen specialization and the quality of education you have access to. 

Indeed, a UK citizen residing in the capital will enjoy access to top business courses. Just as a Californian seeking to do a tech MBA will benefit immensely exactly where they live.

That said, there is still a lot to reap from living in a more rural environment. 

Does the Tuition Cost to Return-on-Investment Look Favorable?

When assessing the return on investment of such an important financial decision, it’s vital to think beyond the prospect of revenue.

Sure, it’s important to choose an MBA in entrepreneurship program with a sustainable tuition tag. But the applications of an entrepreneurship MBA towards running your business are, in large part, analytical. And therefore individual.

Unlike MBA students looking to enter the job market, your goals are directed towards starting a business. And eventually, making everyday entrepreneurial decisions.

What Are Your Strengths and Interests?

There are numerous MBA specialization areas.

Think of it like this: If you can start a business in a subject, it can be studied and mastered. Finance. Tech. Textile design and manufacturing. Financial accounting and consultancy. Legal management; you name it.

It’s essential to have some idea of what your interests are. Which, of course, will almost always be wholly determined by your specific field of business.

Best MBA Programs

In addition to an MBA for entrepreneurship, there are several other specialized fields to choose from:

  • IT (Information Technology)
  • International Business
  • Corporate Management
  • Marketing 
  • Finance 
  • Operations Management

Jobs for Entrepreneurs with MBAs

The jobs most suited and most accessible by MBA graduates include:

  • Financial Consultant/Analyst – manages the firm’s accounting department and advises proprietors
  • Marketing Manager – oversees advertisement development and product marketing strategies
  • Research Manager – helps in budgeting, business plan formulation, and overseeing research projects
  • Non-Profit Manager – organizes events to raise funds for various causes
  • IT Department Head – managees developer teams; delegates and supervises business tasks
  • Human Resource Manager — coordinates staff issues for startups, both internal and contracted

MBA for Entrepreneurship vs Actual Entrepreneurship: Myths Dispelled

Myth #1: You Must Pick One Path: School or Entrepreneurship

Ah yes. So the fallacy goes. While the rest of the world trudges on with actual entrepreneurial work, MBA students extricate themselves. For two years, they’re fed all there is to know about starting and running a new business.

But on closer inspection, this contrast of school vs. experience is not entirely valid. The theory comes tainted from the source. 

For one, the first most important requirement for an entrepreneur is, and will always be, an appetite for prudent, calculated risk.

A decent case can be made that you’d be in a sufficient fiscal position after finishing your degree to start and run a new business. 

About this question of time and value, Seth Godin says

Myth #2: Traditional MBA Programs Trump Online MBA Programs

Not so. Truth is, many graduate business students set their sights only on a traditional, on-campus MBA at a brick-and-mortar school. 

If we allow for a grander comparison, there are over 1,000 MBA programs in the United States. 

Some are full-time, while others are part-time, often offering classes on nights and weekends. 

Here at Quantic, we offer both an innovative free online program as well as an online executive program.

But, just like the world of business itself, MBA programs are changing rapidly. There are now over 330 online MBAs offered in the U.S — of which Quantic is a top contributor. 

With two accredited, highly selective business degree programs — the free MBA and radically affordable Executive MBA — Quantic’s MBA programs are reliably well-reviewed and readily available online. 

Online MBA Pros

The biggest reason that many entrepreneurs choose an online MBA is for the flexibility. Unlike traditional MBA programs, most online graduate business degrees allow you to work on your own time from anywhere.

Online MBA Cons

One disadvantage of an online MBA program is a lack of in-person community and connection.

MBA students often benefit from in-person conversations with peers and instructors. And that’s both in terms of academic collaboration and socializing. Fortunately, the Executive MBA also offers multiple weekend-long conferences held in cities around the world.

Traditional MBA Pros

In traditional business schools, MBA programs often appeal to students who want a little more hands-on guidance. 

Fresh undergraduates from top business schools might prefer the additional in-person attention. At least that which is offered by a brick-and-mortar school, as well as the familiar daily routine of face-to-face classes. 

Traditional MBA Cons

Of course, the most significant disadvantage of on-campus MBA programs is the lack of flexibility. 

Say you have a family at home, existing business obligations, or a burgeoning career. For these students, it can be difficult to justify starting a full-time MBA program.

Traditional business schools offering MBAs also tend to host younger students on average and there aren’t as many international students at any given on-campus program. 

Benefits of an MBA

At its most efficacious, an MBA will equip its holder with an exhaustive, well-rounded set of entrepreneurial tools. 

Here’s what you can expect to gain from an MBA: 

Firm Conceptual Foundation to Start & Run Your Business

MBAs are meant for aspiring corporate climbers just as much as aspiring entrepreneurs. And its core units are designed with either end in mind. 

An MBA is as credible a tag as you can earn to validate your ability to steer businesses in any (and more) of these fields. And that’s regardless of your eventual course of trade. Whether mechanical operations, marketing and branding, financial services, communications, corporate law, even IT.

A recent study that profiled nearly 40 new businesses reliably found that, of those started within the past decade or so, at least 33% had an MBA-holding founder.

Essential Skills and Insights for Entrepreneurship and Innovation

The world is awash with people hiding truly innovative ideas. The trouble is that most people lack the basic knowledge needed to be competitive in the real world.

An MBA will serve the crucial role of equipping you with the right know-how to see your ideas to fruition. Specifically, that which is needed to manipulate the market, find a niche and make it sustainably profitable.

Indeed, like most other fields, entrepreneurial knowledge is a priori — the concepts are testable, predictable, and hence actionable. And an MBA will go a long way in giving you the innate ability to pattern out your businesses’ course in just this way.

Practical Communication, Leadership, and Problem Solving Skills

There’s no other way to make something meaningful out of your new businesses — you need the ability to communicate efficiently. 

Regardless of your line of trade, if you do indeed want to accrue enough venture capital to bring your business ideas into fruition, you need to learn how to convince investors of the soundness of your product, service, or business plan. 

Additionally, as a startup founder, you will need to learn how to manage teams of workers. And just as well, you’ll need the conceptual tools needed to understand the scale of a problem, scope out its dimensions, and determine how best to tackle it. 

With an MBA from Quantic, you will gain the skills of interpersonal communication, teamwork and collaboration, adaptive thinking — and that’s just some of the tools in the MBA’s holster.

Extra Academic Credentials and International Experience to Appeal to Potential Investors and Partners

If you opt to enroll in either one of Quantic’s two MBA programs, it’s an excellent step towards making a credible case for your worth in the international business market. 

An MBA is not only universally recognized as a valuable credential by investors you will eventually pitch to. But it’s also a mark of global exposure and evidence of compatibility with most business environments worldwide. 

Get Started With Your MBA at Quantic

While an MBA is impactful, it’s essential to recognize that it is not a replacement to a business’s uniquely crucial requirements: the confidence to take necessary risks. Nor will it furnish you with the passion needed to see an idea through the inevitable successes and pitfalls.

What it will do, however, is take your leadership skills to the next level. All while building connections in a global community of high-achieving classmates and alumni. 

Quantic’s online MBA program can serve as a game-changer in your business career, and we’re not the only ones saying it

Our premier 13-month degree program is designed for mid-career professionals. It integrates collaborative group projects with our rigorous MBA curriculum and is enhanced with specializations in management, leadership, and advanced strategy. 

And you don’t have to take it from us. Vay Cao, alumni of Quantic Business School and founder of Free the PhD, an advocacy and career development platform for PhDs, has very interesting things to say about her time at our campus. Check out this case study we conducted on her work and startup.

The Pros and Cons of Working for a Startup Company in 2021

Startup

Does that word send shivers of fear or excitement down your spine? 

Does the thought of working with a shiny and new business concept appeal or appall?

As children, we were afraid of the dark, the monster under the bed, the neighbor’s big scary dog. It’s the unknowns that frighten us. 

However, once we realize there are no monsters, that nothing lurks in the shadows, and the dog is a big softy with a loud bark, we’re more or less okay.


As adults, we try to have fun with fear by watching horror films. If it isn’t real, it can’t be that frightening, can it? 

Our current fears — loss, failure — have to do with the unknown, too. 

Startups are one of these unknowns, but they do have a positive side to contrast the uncharted waters. Today, we’re going to look at both the good and the bad, the frights and delights — so when the interviewer at your dream startup asks, “Why do you want to work for us?” you’ll be well informed and prepared to answer.

We’ll be covering:

What It’s All About – What a Startup Is and How Startups Work
The Day to Day Nitty Gritty – Working at a Startup
It’s the Little Things – Why You Might Choose to Work at a Startup
Go Big Or Go Home – Why You Might Choose a Larger, Established Company
The Choice is Yours – How to Make the Decision

Ready? Let’s start it up. 

How Startups Work

The first thing to understand about working at a startup is how they function. 

Startups don’t quite work like other well-established companies, especially in the early stages of launching the business. 

What Is a Startup?

Let’s get this out of the way.

You can define a startup as a company that:

  • Is in its earliest stage of development
  • Is typically self-funded or seeking venture capital from investors or banks
  • Has 1 to 3 founders
  • Has fewer than 50 employees
  • Is focused on growth
  • Has identified a problem and is working towards a unique solution
  • Is trying to do what no one has done before and aims to change the world by doing so

Startup Company Culture

Startup company culture tends to lean to the creative, innovative side of things. 

A startup’s culture may stem from the founder’s personality, but even the corner office types know that creativity fuels growth. And growth is what it takes to move any company forward. 

Therefore, many startups aim for a fun, creative, imagination-sparking environment in the early development stage. 

You also have to remember that a true startup has a vision — that desire to change the world somehow. 

Visionaries tend to foster a culture of “let’s try it and see” if there’s even the slightest shred of evidence or hope of success. 

Startups often have a philosophy that encourages asking questions. In fact, employees at a startup may find themselves being asked questions, usually by the founder or CEO, as everyone searches for the best ways to find the solutions they seek.

For example, a founder without an MBA might approach a team member with an MBA and ask questions about a business-related topic that the founder is uneducated on.

Work/Life Balance, or Lack Thereof

Most startups are filled with people committed to the mission that the company has embarked on. 

That type of commitment can mean working long or weird hours or even changing your role over time. Growth can place even more demands on your time and talents as the startup expands, but not enough to hire more people. 

Startups are learning, however, and many now offer creative ways to help counterbalance these demands. As with finances, it largely depends on the founder’s mindset. 

Working at a Startup — the Day to Day Stuff

Your Work Will Be Valued, But Not Well Paid

In place of the “brick in a wall” feeling lots of people have as an employee of more extensive, established companies — startup team members are offered an opportunity to make a difference in both the company and the world. And that difference is both measurable and visible. 

Your work will matter, as teams are small and everyone must pull their weight. That means the work will look different across startups, but it typically means that each individual will have well-defined tasks and measurable goals to meet. 

Unfortunately, most startups are strapped for cash. That means your salary and benefits will likely be far less than if you worked in the same position for an established firm. You’ll be highly valued but not well compensated. At least not in the beginning. 

Your Workplace May Be Weird

You most likely will not work 9 to 5. You may not work in an office. You may not even have a company headquarters to report to, other than the owner or founder’s home.

An early-stage startup can be headquartered in a garage (Apple), an apartment (TOMS Shoes), or even a kitchen (Clif Bar & Company).

You may even be asked to work from home. With today’s plethora of available technology, you may find yourself in a different time zone or even on a different continent than your fellow teammates and founders. 

Some startups are now composed entirely of these remote teams, bringing a unique set of demands and requirements. 

You’ll need self-discipline and self-starter tendencies, as there’s no boss looking over your shoulder. You’ll also need to be comfortable working by yourself, without direct and immediate colleague interaction. 

Remote teams are not always ideal for the extroverted, outgoing types, as it can get lonely working all by yourself with just the ficus for company. 

Your Teammates Will Be Supportive

Since everyone at every startup is working towards that world-changing solution, the atmosphere is entirely different from many other businesses. 

Instead of looking out for #1, it’s more like the Three Musketeers — all for one and one for all. 

Therefore, you’ll find your teammates less competitive and more cooperative and supportive of everyone’s efforts. You may find it hard to adjust to this at first. 

Your Future May Be Uncertain

Your role may shift, too, as the company grows. At some point, you will undoubtedly be asked to take on either more or less responsibility than you had in the beginning. More if you’re moved into a supervisory position. Less when more teammates are brought on board.

Your work/life balance may wax and wane, too, depending on your role within the company. You may find yourself in demand at one stage and sitting on your thumbs in the next, as goals are met and needs alter to meet them. 

As the company’s finances and funding rise and fall, yours may do the same. You may never get rich working for a startup, but unless your startup fails, you may never have to worry about a paycheck again (and getting rich is always a possibility, however slim).

Many find these challenges hard to deal with and thus choose not to work for startups. Others see them as challenges to be met and surpassed. It’s not hard to see that appeal, either. 

Why a Startup May Be Right for You

Working at a startup may be right up your alley if you meet certain personality and business-related criteria.

It Takes the Right Kind of Person

Here are some personality traits that may make you the perfect fit for a position with a startup:

  • Reliable — a lot of responsibility will be placed on your shoulders
  • Self-starter — you may be faced with finding your own solutions
  • Cooperative — you’re a team player, not the star of the show
  • Creative — innovation requires imagination and thinking outside the box
  • Flexible — growth demands adaptation, exploration, and experimentation
  • Genuine — it’s hard to fake it in such a small, intimate setting

It Takes the Right Kind of Skills

In addition to the right type of personality, specific skills are in demand regardless of the product or service a startup is developing. These include:

  • Sales — all startups are trying to sell something; in the beginning, it’s their idea and their potential for growth in hopes of securing funding. In the end (hopefully), it’s their product or service.
  • Technical skills — from developers and designers to back-end tech skilled in Photoshop, HTML, and Facebook’s ad platform, those with both specific tech skills and broad, general tech skills are always in demand.
  • Data analysis — remember those goals we mentioned? The company needs to be able to tell how close they are to achieving them. Knowing what to measure, how to measure it, and how to interpret those numbers is vital.
  • Growth skills — Startups generally market with little to no budget. They often rely on social media and word of mouth and thus need marketing staff who can think creatively on their feet.
  • Doers — Whether you call yourself a self-starter or a polymath, startups need people who can, and do, get things done. Those with an active hobby life, a side hustle, or who just hate getting bored are highly valued.
  • Multiple skillsets — Those who are good in one area and somewhat useful in another are often chosen over the experts in just one field.

While Quantic’s MBA programs can’t significantly alter your personality or your ability to “do” things, we can already see that you have at least some of the skills that will make you attractive to startups. And we can hone the necessary hard skills to make you extremely hireable. 

Who wouldn’t want to hire a candidate with an education on par with Harvard Business School?

Why Working at a Startup May Not Be a Good Choice

As we’ve seen, there are a few reasons why you may not find startups to be the best choice for you and your career. Here are some reasons not to make that decision, in order of importance:

  1. Startups fail. You may want a more secure, reliable future.
  2. Startups are demanding. You may not want to risk your work/life balance for uncertain gains. 
  3. Startups are all about innovation and creativity. You’re not signing up for the 9 to 5, suit and tie, cubicle, and commute business world.
  4. Startups require traits and skills you may not possess. As exciting as the world-altering solution may seem, if you can’t be true to both your abilities and your work — it will most likely prove a huge disappointment to all involved.
  5. A startup may not be the best thing for your resume. We’ve not yet discussed life after a startup, but your role at a startup, and the ultimate fate of that startup, may affect your future prospects. 
    1. If, for example, you were involved in securing funding and the venture failed for a lack of funding, you may have difficulty finding another firm willing to take you on.
    2. However, if your startup is still thriving (or at least surviving) and you’ve simply outgrown your role there, you may find yourself welcomed with open arms. You were, after all, responsible for that growth in some capacity. 

No one will blame you if you don’t choose the startup route for your career. 

How to Decide if a Startup Is Right for You

Ultimately, the choice to work at a startup is yours to make. There are a few things to consider that will help you decide. 

The first consideration is your future. Can you afford to potentially lose your job in a few months? Are you willing to go through another job search in a year or two? Startups fail, as we’ve said, and you’re assuming a risk-taking position by working with a startup. 

The second thing to consider is your life. Can you afford the time working at a startup will demand? Are you in a place where the sacrifices of evenings, weekends, long hours every day will not be asking too much of you, your partner, your family, and friends?

Next, take a good long look at yourself. Do you have the personality and skills to make working at a startup rewarding, or will you find yourself too challenged? Too out of your comfort zone? Too out of your depth?

If you decide to try working at a startup, you may find plenty of opportunities on our job search engine. Companies large and small, new and old, access it to find their next executive, MBA grad, or candidate. 

We even count our very own Quantic startup founder among our graduates. You can read her story in a case study we’ve prepared. 

How to Start a Tech Company | Software Founder Tom Adams Explains

Countless aspiring tech entrepreneurs launch and fail within their first year. 

They fail after overlooking one key step they need to take before spending a single dime or contacting a potential investor.

Before starting a tech company, every entrepreneur needs to establish a mission that solves a business problem. Put another way, a “brilliant” technical idea is worthless if potential customers don’t already need it.

We’re about to dive into the basics of how to start a tech company and explain what you need to maximize your potential for success. 

In an exclusive interview with Quantic’s founder, Tom Adams, you’ll learn how Tom built Quantic into a multi-million dollar tech startup. Now, he teaches other tech entrepreneurs to leverage the same recipe for success.

What Is a Tech Startup?

Put simply, a tech startup is a fledgling company that brings technology-based products and services to market. 

In the current technology landscape, a tech startup can be launched very quickly — sometimes in just a matter of a few weeks — if the collaborators and resources are in alignment.

With the advent of the cloud and integration companies, it’s more accurate to say that a business is assembled rather than built from scratch. Multiple service providers supply resources, including online computing power, programming teams, project management, and security services. 

In the technology industry, an entrepreneur with the right mission and the ability to seek out the right providers can start a business within days — depending on the complexity of the service or product.

Starting a Technology Business

Starting a tech company is no different than starting any other business. Right?

In short, wrong. 

There are some major differences between starting a tech business and a traditional brick & mortar business.

The traditional business is dependent on location to function, with factors to consider like:

  • Local foot traffic or commuter traffic for visibility and access
  • Office space leasing
  • Availability of qualified staff within close distance
  • Storage and warehouse needs

The tech business lives in a virtual landscape. Every member of the team, from the founder and CEO to the administrative assistant, can work remotely from anywhere in the world. The Internet is their office; their laptop is their factory.

Ease of access to your company and your means of production makes the logistics of starting a company very fast. But the virtual business arena comes with its own unique challenges, such as:

  1. Reduction in collaboration if teams aren’t disciplined about staying connected
  2. Constant security obstacles from hackers, spammers, and other online threats
  3. Business shutdowns when service providers (e.g. AWS, PayPal) have an outage

While tech companies and physical businesses have fundamental differences, they will always share the same business principles of success. You can see those principles at work in the most recent list of Bloomberg 2020 billionaires, the types of businesses they run, and the education they pursued to become successful.

For example, former US presidential candidate and founder of Bloomberg LP, Michael Bloomberg, earned his MBA from Harvard Business School. Phil Knight, the co-founder of Nike, earned an MBA from Stanford University. And Lee Kun-Hee, the chairman of the Samsung Group, earned an MBA from George Washington University.

All billionaires. All leaders of very different types of companies, including tech companies. All basing their business success on consistent principles learned through an MBA.

Quantic’s Founder Tom Adams Explains How to Create a Tech Startup

Tom Adams, Chairman/CEO and Co-founder of Quantic, is an E&Y Entrepreneur of the Year National Winner and former Chairman/CEO of Rosetta Stone. Tom holds an MBA from INSEAD, one of the world’s largest graduate business schools, and a B.A. in history from Bristol University.

Tom Adams, Chairman/CEO and Co-founder of Quantic

It’s fair to say that Tom has spent years acquiring the education, experience, and success to build winning businesses. He’s shared his invaluable insight into what it takes to start a winning technology business in the current landscape.

How to Build a Tech Company From the Ground Up

According to Tom Adams, there are three fundamental elements an entrepreneur needs to incorporate into their strategy right from the very start.

  1. Define the mission, and make sure it’s “crystal clear.”
  2. Define the constraints such as “things you will always do” and “things you will never do.”
  3. Iterate quickly to ensure the “design meets reality” and the product is adjusted to fit the customers’ needs.

How to Start a Tech Company Without a Tech Background

Much of what goes into a company’s success is “product/market fit”, which involves matching the product or service to the customers who want to buy it. 

Once the mission and constraints are crystallized as the company’s mantra, the goal is to assemble a team with all the collective strengths necessary to execute that mission.

Starting a Software Company With No Programming Experience

But, doesn’t a software company need every member of the team to be fluent in programming languages?

On the contrary!

In other words, an entrepreneur need not be a programming expert to make the world’s greatest technology solution a reality. But, an entrepreneur does need to know how to assemble a team that brings all the ingredients together, including programming, to make the mission possible.

How to Start a Tech Startup With No Money

There are two primary methods for funding your startup without already having the funds or bootstrapping. Both involve seeking funds from investors who believe in you or obtain “working capital” by accepting advance payment on products/services.

First, you can seek investment from individuals or groups, such as angel investors. The key is to “find people who believe in you.” 

This is where having a crystal clear mission comes into play. When an entrepreneur has a mission they believe in, investors will believe in the entrepreneur. 

Belief begets belief. 

The second avenue is obtaining “working capital”: 

Early access, early bird pricing, and limited-time benefits are all methods that could be used to entice customers to buy early and help pay for the launch.

How to Find Tech Startup Ideas That are Viable for Growth

Viable growth begins by “mapping out the existing landscape” for the problem your solution is meant to solve. 

When you’re developing a solution in a market already filled with competitive solutions, think about; “what are you going to eliminate, and what are you going to create and elevate in terms of features and benefits for the customer.”

If your solution is similar to others on the market, success will depend on developing a cost advantage. Either through streamlining development to make production cheaper than the competition or by selling at reduced margins to capture significant market share.

Small startups begin at a “scale disadvantage.” To compensate, success comes from innovating “new combinations of features” and benefits “that delight” customers enough to outweigh the loss of features customers would normally get from competitors.

Tips on How to Create Technology

Although the crystal clear mission of a startup describes creating a very specific solution to a very specific problem, technology rarely exists in isolation. A connected world means every new solution created must “co-exist with other applications.” 

That means a new solution will need to “interoperate” to fit with what people are already doing today.

For example, if you create a new mobile application that helps customers to stay more organized while at work, you’ll need to design the application to work across mobile devices. Also, organization tools will typically need to integrate with calendars, mail applications, or cloud file storage services.

It all has to work together. As a result, thorough and ubiquitous compatibility is crucial.

The Most Important Key to Growing Your Tech Business

Your solution can’t be the very best and most perfect answer to every aspect of the problem your customer faces. 

Focus on being the very best in the world at a “few things” to ensure your team remains concentrated on being the market leader where it counts.

Does an MBA Education Benefit Future Tech Startup Founders?

Everyone starts somewhere. The challenges a tech startup faces are unique when compared to traditional brick & mortar businesses, but the fundamentals of business are still the same.

Entrepreneurs learn entrepreneurship by doing. Programmers learn programming by doing. Nearly every member of the team assembled to execute the mission brings the particular strengths they’ve honed through time and experience. All by doing.

An MBA can’t teach those strengths to a well-assembled team, but an MBA can teach “strategic leadership so they can scale and direct the organization much more effectively.”

An MBA empowers a fledgling CEO to:

  • Think in “terms of value creation for a long-term strategy.”
  • “Position competitively in terms of branding or product placement.”

Quantic, Tom Adams’s company, understands the value of an MBA for new CEOs. Quantic’s MBA program teaches the “fundamentals such as accounting or strategy.” And students get to “build out business plans” and develop a “network of peers” to “accelerate their proficiency in the key terms and the key ways of building business success.”

Quantic has demonstrated a track record of success for their students. Not just in providing a world-class MBA program to give CEOs the tools they need, but also in helping students start their own successful businesses.

Read the case study about a Quantic student whose startup connects with their hearing-impaired audience.

Startup Valuation Calculator Templates | How to Value any Startup

Are you afraid of losing money and looking like a fool for making a bad investment? The answer is almost universally yes for every startup’s potential investors.

Fear causes an investor to second guess a sound opportunity staring them right in the face.

The best way to overcome investor fear is knowledge. The knowledge that the startup is valuable and will yield a solid return.

The first and best piece of knowledge is an accurate startup value. Let’s get familiar with the different methods of value calculations. We’ll define how they work and when you should use each one.

How to Value a Startup

There are many ways to calculate the value, but no magic number will meet every investor’s needs. The calculations break down into two major categories:

  • Pre-money valuation
  • Post-money valuation

Calculations are broken down based on when the payment happens. Usually it’s before and after the current rounds of funding.

Pre-Money Valuation

With this type of valuation, an investor estimates how much the company is worth right now. It’s an indicator of market confidence in the startup’s potential. It’s not necessary for even a single sale to be made.

This type of assessment can be more difficult to calculate because it depends on where the company is in its stage of development. Such as:

  • Is it pre-revenue, meaning it hasn’t made a single sale?
  • At what point does the company plan to move from pre-revenue to generating revenue?
  • Does the company’s business model contain pre-revenue sales projections?
  • Or if the company is past the pre-revenue stage, will the initial investments go entirely towards capital purchases?

These are some of the questions that factor into the value calculation.

What Is Pre-Money Valuation?

This calculation is one of the two startup valuation methods used before the investor commits funds. It sounds intuitive. But it’s necessary to make this distinction for accounting purposes. For example:

Let’s say a startup is worth $10 million. An investor decides to invest $1 million in exchange for 100 shares of stock. The company value before the investment is $10 million and the post-money value is $11 million.

To lower risk, investors will put money into a startup over later rounds of investing instead of all at once. This invest-as-you-go model is common. The startup gets the funds to grow and the investor lowers potential loss if the startup fails.

Pre-Money Valuation Formulas

Every startup is different. So, calculating the startup’s value is not a one-size-fits-all process. Financial experts developed different types of startup valuation methods. Each one focuses on a different financial perspective.

A savvy venture capital investor will use many methods to calculate value. Then they decide to invest in an early-stage company based on an averaged amount.

The Discounted Cash Flow (DCF) Valuation Method

The Discounted Cash Flow method measures the future revenue potential of a startup. It generates a value based on a large number of detailed assumptions about the startup’s business model. It then calculates revenue over a set period of years.

DCF works best as a type of “sanity check.” Combine it with other methods to ensure the average value falls within an acceptable range of accuracy.

The Berkus Method

The Berkus Method was developed as a way to calculate the startup valuation without unreliable assumptions. In David Berkus’s own words:

It’s best to use this method if the risk factors are known. Also, it works if the return on investment for the startup is unknowable due to too many assumptions.

If Exists:Add to Company Value up to:
Unique Selling Proposition (USP)$500,000
Viable Beta $500,000
Quality Controls in Place$500,000
Partner Agreements Pre-Revenue$500,000
Post-Revenue Success$500,000

Value factors for the Berkus Method

Scorecard Valuation Methodology

This method answers one basic question when it comes to startup valuation methods. “How valuable is this startup compared to similar companies?”

The Risk Factor Summation Method

The Risk Factor Summation Method is a combination of the Berkus Method and the Scorecard Valuation Methodology. It measures startup valuation by comparing the company with other companies. The comparison is used to develop a baseline. It then adjusts the value based on a list of 12 risk factors.

Like the DCF, it’s best to use this method with other methodologies to develop an average score.

Venture Capital Method

The Venture Capital Method takes a finite term approach to the valuation method. The investor assumes an exit term, say 5 or 7 years, from the point of investment. It then back-calculates the return on investment for that period.

This is one of the preferred startup valuation methods. An investor can set the exit strategy on milestones. An example milestone would be reaching a specific dollar amount in sales or percentage of market share.

Comparables Method

Like the Scorecard Valuation Methodology, the Comparables Method calculates a value by comparing the startup to similar companies. Unlike the Berkus Method, the baseline is adjusted by a series of ratio values. The ratios include price-to-earnings ratio (P/E), price-to-sales ratio (P/S), and enterprise value-to-earnings before interest, rather than flat dollar adjustments.

The Comparables Method is simpler to calculate. It relies on fewer assumptions than the discounted cash flow method. But accuracy is more dependent on the accuracy of the market value of the peer group used in the baseline.

Cost-to-Duplicate Method

The Cost-to-Duplicate Method looks at the cost of starting over from scratch in another location or industry. This method can help investors determine soundness very quickly. If the company can be reproduced cheaper or better in another location, it’s not a good investment.

This is a very rough calculation. It doesn’t take mitigating factors into account like tax laws in alternative locations. It’s quick but very prone to error. 

Pre-Money Valuation Calculator

The methodologies listed so far are subtly different. But most have strong similarities. This makes the prospect of calculating value confusing.  

Fortunately, Quantic has published a free template to help.

Post-Money Valuation

Post-money valuation is a measure of the startup’s value after the current funding round is complete. This gives investors a view into how much other investors are willing to support the startup. It’s a picture of the willingness of others to financially back its chance of success. 

What Is Post-Money Valuation?

Post-Money Valuation is a company’s value after it receives money from the current round of funding. This value is an indicator of how many shares an investor will own as a function of the amount of money invested.

If a startup only has one investor, that investor will receive 100% of the available shares. If there are many investors, there’s strong confidence in the company. But this also reduces the percentage of available shares that can go to a single investor.

Post-Money Valuation Formulas

As with the other value calculations, there are several to calculate post-money. It’s best to base investing decisions on an average of the methods used.

Book Value Method

The Book Value Method looks at all the tangible assets of a startup after a funding round. It then deducts the intangible assets to derive a net value. It’s a strong indicator of the company’s value on a Balance Sheet. This calculation only works once the investments into the company are complete.

It’s best to use this method if a significant part of the company’s value relies on tangible assets. If a startup relies on patents and copyrights, avoid using this method.

Post-Money Valuation Calculator

Again, it can be confusing to sort through the myriad of methodologies – both before and after funding. To help, Quantic has released a free template to assess the post-money value of a company. It’s a useful tool for investors to make informed decisions.

Note; ideally, we want to have an opt-in here in exchange for the formula calculator.

Valuation Cap Calculation

Here’s why it’s so valuable. “It is intended to ensure that an investor does not miss out on significant appreciation of a company between the time of the sale of convertible notes and the qualified financing.”

No investor wants to miss out on the benefits of explosive growth. The valuation cap makes the investment more lucrative when unexpected growth occurs. 

Startup Valuation Spreadsheet Templates

In the sections above, we’ve provided a free downloadable template that calculates startup value. It’s specifically based on the most common methods used today. But the template also contains a section for Scenario Analysis. This is useful to help compare the results of multiple methods to calculate the best average. 

Note; ideally, we want to have an opt-in here in exchange for the formula calculator.

When it comes to startups, Quantic has helped plenty of students build companies that grow. But its courses on valuation for cash flow and valuation for equity are specifically designed to help startups position themselves to look attractive for investors.

Finance vs. Accounting: Key Differences to Help Choose Your Next Field With Confidence

We have addressed some of the biggest and most common concerns that many people have when trying to compare accounting and finance. From varying skill sets, different salary expectations, and more, we’ll walk you through the ins and outs of both career paths. 

This is the ultimate guide to study before you make a commitment either way. You should have a thorough understanding of each career choice before you choose a path. This just could be one of the biggest decisions of your life. 

So why not let us take you through both disciplines and help you choose between them? 

Finance vs. Accounting by Definition

They may seem identical but the definitions of accounting and finance are quite different. Let’s take a look. 

Accounting: Accounting is the practice of measuring, preparing, analyzing, and interpreting financial statements. This information helps measure the performance of a business and its financial position. 

The data is also important for the payment of taxes. Accountants use balance sheets, cash flow statements, and ledgers to track daily operations. They focus mainly on the past performance of businesses and individuals. 

Specializations in accounting include:

  • Financial accounting: This is the use of balance sheets, income, and cash flow statements to provide information. This data is used by stakeholders such as investors, tax authorities, and creditors. 
  • Managerial accounting: Managerial accountants use the same information as financial accountants. Internal staff then use the information to make decisions about business operations. 
  • Cost accounting: This involves studying balance sheets and income and cash flow statements to find ways of minimizing the cost of production. 

Finance: Finance deals with investments and the management of assets. A financier will focus on decisions about working capital for businesses and individuals. 

They deal with inventory, credit levels, cash holdings, and financial strategy. Finance will usually focus on the future performance of a business or individual. 

Finance can be divided into three sub-categories:

  • Personal Finance: This includes long-term financial planning for individuals. Some of these include retirement and the purchase of financial products such as mortgages. 
  • Corporate Finance: This involves the financial activities of the running of a business. These activities can include investment strategy and budgeting. 
  • Government Finance: Public finance examines tax and government policies. The information studied will affect how resources are allocated. 

By looking at the different definitions, and a summary of the skill sets, you can see which career path best suits you. You can align your skills, financial needs, ability to travel, and career aspirations with the correct job. 

Finance vs. Accounting Salary

Salaries in both professions will depend on the experience of the individual as well as the industry for which they work. 

Entry-level accountants earn an average of $40,777 and the topmost level accountants can make up to $83,800

In New York, some accountants can earn more than $60.000. The region with the lowest accounting salary is in North Carolina with an average of $44,281

According to the Bureau of Labor Statistics, the nationwide average for an accountant’s salary is $71,550. 

The truth is – depending on the type of career you choose, these numbers can have a wide range. 

BLS states that accountants in insurance and finance firms earn the highest salary at $74,690. 

It’s important to note that auditing clerks earn the least and with negative job prospects, it’s a career that’s on the decline. 

Technological improvements have automated some of the roles, hence the decline in open opportunities. This could also affect the accounting industry to a lesser degree. 

People who have specialized in finance can earn a lot of money as they move up the ladder. 

Median Annual Salary (USD)Number of Jobs in 2018Job Outlook 2008 – 2028Employment Change 2018 – 2028
Auditing Clerks$41,2301,707,700-4%-65,800
Accountant$71,5501,424,0006%90,700
Financial Analysts$85,660329,5006%20,300
Personal Financial Advisors$87,850271,7007%19,100
Financial Managers$129,890653,60016%104,700

Similarly, there are different levels of financiers, all earning varying salaries. 

If compensation is a big factor when considering a profession, becoming a financial manager is your best option. Actuaries are some of the highest-paid financial workers, earning from $150,000-$250,000. 

The Different Finance vs. Accounting Job Roles

Accountants need to be extremely precise as they often deal with large amounts of money. Even the slightest error can result in a business or client losing money. The role requires attention to detail and a high level of organization. 

Accountants often work alone so this role is perfect for introverts who will mainly create written reports for senior management. 

Financiers on the other hand need excellent communication skills and must be able to interact extensively with senior executives. The job requires presentation and interpersonal skills as they present reports to an audience. 

This is ideal for extroverts who are confident and able to handle high-pressure situations. 

Your interests, education, and skill sets may influence how you view the different roles required by accountants and financiers. Take a look at our list of job roles below. 

Financial Officer Job Roles:

  • Analyze and interpret financial reports to advise managerial teams 
  • Raise capital through debt or equity
  • Create and put in place a corporate strategy
  • Budgeting and forecasting (monthly, quarterly, annually)
  • Handle mergers and acquisitions
  • Risk management
  • Evaluate and advise on investments 
  • Implement cost-reducing solutions

Accountant Job Roles:

  • Collect, organize, and track financial information 
  • Prepare financial reports that meet government and stakeholder requirements
  • Prepare financial reports for internal use by staff
  • Conduct audits to ensure legality and adherence to policies
  • Prepare tax returns and report income to the IRS
  • Advise clients and firms on how to minimize tax liability

Accounting vs. Finance Personality Types

Not everyone can be an accountant or a financier. There are personality traits that will make some people more apt to perform well in each career. 

We’ve taken a look at one of the most popular personality tests used by organizations across the world. It helps employers decide if a potential employee is fit for the role. This sort of personality testing can help you determine which profession you are more likely to enjoy or excel in. 

The Myers-Briggs Type Indicator shows how people use their perceptions and judgment. The MBTI instrument measures preferences, not ability or character. 

Used by Fortune 500 firms the MBTI personality test is helpful before placing an individual in any specialized role. 

The personality type ISTJ (Introversion, Sensing, Thinking, Judging) is, well-suited for accounting positions. These people are systematic, analytical, and have a high work ethic. 

Known as ‘The Inspector’, they are traditionally serious and loyal. Leaning towards facts, they perform accounting jobs efficiently. Accuracy is key when they have to look through many documents and information. 

Financiers are shown to be INTP personality types. This stands for introversion, intuition, thinking, and perceiving. 

Let’s take a closer look at some of the different personality traits which accountants have vs. financiers. 

Accountant:

  • Detail-oriented 
  • Risk manager 
  • Procedure-oriented 
  • Able to use rule-based thinking 
  • Accountable 
  • Accurate 

Financier:

  • Attentive to detail 
  • Can conceptualize scenarios 
  • Analytical 
  • Inquisitive 
  • Business development skills 
  • Problem-solving skills 

Before diving in, why not take the MBTI test to better understand your personality. Free versions are also available online although they are not the original test. 

You can also check at your school’s career center or your work’s HR department if they offer the test. 

The results may surprise you and they will be key in avoiding a career incompatible with your personality. It will show you your strengths and weaknesses and guide you into a job that suits you specifically. 

Financial Analyst vs. Accountant

After taking the test, you should have some direction as to which job you would like to pursue. Though similar, these two professionals perform very different jobs

Let’s take a brief look at the major differences in daily duties and work environments. 

Financial analysts have a broader job description and their roles are less fixed. They deal with the management of assets and liabilities. This enables them to make future predictions and advise management. They develop investment strategies and are in charge of how to make use of company resources. 

Some financial analysts’ duties include: 

  • Analyzing stock fluctuations. 
  • Creating simulations to forecast the outcomes of financial transactions. 
  • Reviewing spending and revenue projections. 
  • Liaising with management teams to offer advice on financial decisions. 

Accountants have a more structured role and are heavily involved in taxes. They deal with the day-to-day flow of money in and out of a business. 

Some duties performed by accountants include:

  • Organizing company accounts. 
  • Reviewing records to reduce spending and increase profits. 
  • Developing and managing working budgets. 
  • Preparing taxation procedures. 

Generally, both types of employees work 40-50 hours per week. Accountants have a busy February to April tax season where they may work up to 70 hours a week, depending on the number of clients they work with. 

The work environment also differs as financial analysts often have their own offices. Many accountants, especially at entry-level, work in cubicles, although many high-level accountants will likely have the luxury of their own office. 

Can I Combine Finance and Accounting?

The careers are somewhat related, and some employees may perform some of the same tasks. 

The topmost position of either of these professions is that of Chief Financial Officer. It is essentially a combination of finance and accounting in one position. 

With the right experience and educational background, you could have the opportunity to manage a business’s finance or accounts departments. 

CFOs are tasked with the financial planning of a business. They also need to oversee the organization’s cash flow. 

To get to this leadership position, you will need to understand both job roles. You will need to supervise employees and perform tasks required in each profession. CFOs need a combination of skills including:

  • Leadership skills 
  • Management skills 
  • Accounting skills 
  • Data skills 
  • Strategy skills 

Besides a Bachelor’s degree, to reach this management position, often you will need a Master’s Degree. An Executive MBA is a good option if you already have some work experience. 

The Difference Between Finance and Accounting Degrees

Both jobs need a basic Bachelor’s degree but further education courses differ. For financiers, it is advisable to be a member of the CFA Institute. Accountants, however, are usually required to complete a CPA certification. 

See the details below:

So which degree is best? Everything is relative and will depend on your strengths. 

Generally, accounting majors at the undergraduate level are not easy. Students say finance on the same level is much easier. 

If you are starting your undergraduate level, it may be advisable to take a joint degree. It will provide you with general knowledge of both professions and help you choose the best path. 

Accounting does not increase in difficulty at higher levels. But finance does, gradually. 

Benefits of Studying Accounting

Accountants are necessary for all businesses and the profession is currently growing. According to the BLS, accountancy is expected to grow up to 10% between 2016 – 2026. 

Having the right information can help you choose which industry you want to work in. This is a way for you to begin to define a clear career path. 

Usually, after graduation, you may start as an entry-level associate with high growth and earning potential. 

Additional certifications will help you advance your career and get a job almost anywhere in the country. 

Another option is to start your own business. If you have an entrepreneurial streak, you can become your own boss after a few years of work experience. 

If you enjoy systematically working with rules accounting is the course you should study. 

Benefits of Studying Finance

Finance offers a wider range of study options compared to accounting. You will cover a variety of specializations used in the business world. You will also be exposed to areas such as economics and banking. 

By studying finance, you will gain the necessary analytical skills to interpret data. 

The knowledge will also be useful in your personal life. You will learn how to make smart investments and handle your finances effectively. 

The career opportunities for graduates are immense and the earning potential is higher than many other careers. You will also learn how to make extra wealth and not just rely on your salary. 

The Best of Both Worlds?

Advice online seems to lean towards studying both degrees. 

Source: www.quora.com

So now, what is the best way to advance your career? An MBA or EMBA degree is common for both accountants and financiers. It will give you the extra edge over and above your basic degree. 

For this with some years of experience, an Executive MBA will allow mid-career professionals to work and study at the same time. 

If you do not have extensive experience, a free online MBA is your best option. By choosing students from the world’s top universities, Quantic School of Business and Technology gives you a chance to network with fellow students either face to face or online.