The Hidden Costs of an Executive MBA

An Executive MBA from one of the world’s top business schools is challenging, rewarding and expensive. Ann Graham looks into the hidden costs of an EMBA.

An Executive MBA (EMBA) isn’t cheap, but talk to any alum who’s “been there, done that” and they’ll say the investment is well worth it. However, like any life-changing project, an EMBA requires careful planning. It’s a decision that every EMBA candidate must come to over time; a decision that needs to be made after extensive research, analysis and evaluation into the options on offer. Part of that research will be into the expenses an EMBA requires, and that shouldn’t be approached lightly. But what makes up that financial investment?

Tuition & application fees

It’s often the case, the more prestigious the institution the greater the tuition fee. A look at many of the world’s top business schools  shows an Executive MBA will set you back anywhere between £25,000 and £90,000, possibly even more. But as part of your research it is important to take note of what those tuition fees entail. While some will cover the costs of course materials, accommodation, food and travel – others won’t.

Before you pay your tuition fees, however, you may be required to pay an application fee. This is the first step to showing your future business school you’re serious about embarking on an Executive MBA. It takes time to put your application together, but it also takes time for the school to process it, and they want to know they’re investing time into a candidate who’s going to add value to their classroom.

Top tip: If your business school of choice requires you to have a GMAT score, add it to the list. That’s another cost associated with the EMBA. You may also need to sit the TOEFL or TOEIC if English isn’t your native language. Find out from the admissions teams of the business schools you are applying to.

Interviews

Once you’ve passed the initial application round, it’s time for an interview – or two. Some business schools request up to two face-to-face interviews with potential candidates, and although this may take place at a venue near you, be prepared to  pay for the necessary flights to your business school of choice should they ask for your presence on campus. Many schools encourage you to visit their campus before submitting your application, to ensure the business school is the right fit for you. This is a valuable exercise to do, as it also allows you to sit in on class, get a feel for the campus environment and project yourself in your future as an EMBA participant there, so set some finances – and time - aside for this as well.

Top tip: Download Skype to your computer and make sure your web cam is working should a school be happy to arrange a face-to-face interview via cyberspace.

Flights & transfers

One of the major attractions of the Executive MBA is that candidates can continue to work and live at home while studying for this prestigious business school degree, thus reducing the disruption to their professional and personal lives. The EMBA does not require you to move to another city, another country, or even another continent – but it is likely to require you to travel there, particularly if you’re enrolled on a Global Executive MBA (GEMBA). As such, you need to ensure you have the financial means to fund your travel. Some schools include students’ travel costs within the tuition fees for some modules or seminars, but this will vary from program to program.

Top tip: Getting to and from the airport is only part of the travel. You still need to pay for transfers to and from your accommodation and school campus. As you get to know your classmates, you may find it easier to not only coordinate travel, but also work on group assignments or simply exchange experiences.

Visas & travel insurance

Embarking on an Executive MBA is challenging enough without adding to stress levels by being disorganized. Save yourself time and worry by establishing which countries you will need a visa for and get the process going, even before class begins if possible.  Your program manager will be able to help you with the details or paperwork if any is needed.

Whether you’re travelling for business or pleasure, you must always take out insurance and travelling during your EMBA is no different. Whether you have an existing policy, or being accepted into an Executive MBA program is the instigator you need to take out a new one, make sure you and your luggage are covered.

Top tip: Back up all of your course work. If your laptop gets lost or stolen in transit, you don’t want to turn up to class without your part of the group project. There are many online back up and file sharing services available, such as Dropbox for example, which not only allow you to access your files from anywhere, but also exchange group work files easily.

Textbooks

After accepting a place on an Executive MBA, you will need to purchase your text books (if your school hasn’t included these in the overall course fees). Purchase these books as soon as possible and start reading. Preparation is key to getting the most out of your EMBA. Professors will also recommend additional reading material throughout your Executive MBA. You may not wish to buy each book, but why not team up with your classmates and each buy a recommended book to share? Keep up-to-date on what’s happening in the FT and Economist as well. If you don’t have an online subscription, you’re sure to find copies in your business school’s library.

Accommodation

Some business schools will include accommodation in the tuition fees, but should you need to source your own accommodation during your modules, either on campus or abroad, why not group together with your classmates and use your negotiation skills with a local hotel? Booking in bulk may enable you to get a discount. Check if some of your classmates have access to interesting corporate rates. Another option is to roomshare – and if you share with a classmate who’s being sponsored by their company, you may find you’ll end up with spare change.

Top tip: Make sure you also set aside money for phone calls (although Skype is definitely a better option), wi-fi access, laundry and car parking. Don’t forget sight-seeing if you’re going abroad for a seminar, group outings and networking gatherings, culinary explorations and fun, too!

Networking & social costs

Studying for an Executive MBA is hard work, but that doesn’t mean it’s all work and no play. In fact, you may find some of your best work, study, and research is done while socialising with your classmates. After all, they’ll be a diverse group of senior managers and professionals from all corners of the globe whom you can learn just as much from as you can from your professors. So make sure you have some money in your pocket for a round of drinks – if you come up with a business idea over a beer, you’ll soon get a return on your investment.

Top tip: Don’t rely solely on your social network profiles, such as LinkedIn. Nothing beats networking face-to-face – it can be expensive but it’s worth it!

And finally… graduation outfit

And then of course there’s the outfit for your graduation. New suit, new dress, new shoes – not to mention the appointment at the hairdresser’s! But don’t feel guilty. You’ve certainly earned a night – and a shopping spree – of celebration!