I got laid off and used my severance money to launch a startup. Here's why it felt like less of a gamble than pursuing an MBA.

After facing an unexpected layoff, Sam Perry, a 40-year-old entrepreneur based in the UK, took a bold step that would change his career trajectory. Rather than pursuing a traditional MBA, Perry opted to use his severance package to launch his own startup, a decision he now believes has taught him invaluable lessons about business and resilience. Perry had always aspired to earn an MBA, viewing it as a crucial stepping stone in the corporate world, especially as job listings increasingly demanded such qualifications. However, after being laid off from a tech position in late 2022, he re-evaluated his career options. With a mid-five-figure severance in hand, he initially considered investing in an MBA program. He explored prestigious institutions like Harvard and Wharton, only to find their hefty price tags—over $100,000 for a two-year commitment—far exceeded his payout, with no assurance of a job afterward. Undeterred, Perry looked into more affordable programs in the UK and online but felt hesitant about spending thousands on degrees without the Ivy League prestige. He questioned the value of an MBA after spending 15 years in the corporate landscape. A family friend's suggestion to start his own business instead resonated with him, particularly since it would cost significantly less than an MBA and provide hands-on experience in entrepreneurship. Perry already had a startup idea in mind: an HR tech marketplace he had begun developing as a side project while working at G-P, a private equity-backed HR technology company. He committed about 20% of his severance funds to launch the business and utilized readily available technology to keep initial costs low. By leveraging free online courses from institutions like MIT, he was able to make essential improvements to his platform. Ensemble, the company he founded, launched in late 2022 and initially achieved modest success by offering access to its marketplace. The business later pivoted to providing direct procurement of HR software for clients. Throughout this journey, Perry gained deep insights into various aspects of business—from marketing to product development and hiring—while also discovering much about his own resilience. The experience of selling his product was a stark contrast to his prior corporate roles; it required him to reach out to potential customers directly, honing his persuasive skills like never before. Fast forward to summer 2024, Ensemble was acquired by a competitor, marking a significant milestone in Perry's entrepreneurial journey. Now serving as a group vice president at Sphera, a supply-chain risk management SaaS company, Perry reflects on how his startup experience has been pivotal in his career. He emphasizes that while many candidates possess MBAs, few have the unique experience of building and selling a company, making such individuals stand out in a competitive job market. For those contemplating between an MBA and launching a startup, he advocates for the latter, noting that the degree will always be available, whereas the opportunity to create and innovate is often fleeting.