Will Your College Go Out of Business Before You Graduate?

Mark Cuban:

I've been getting a lot of questions from High School kids asking whether or not they should go to college. The answer is yes.

College is where you find out about yourself. It's where you learn how to learn. It's where you get exposure to new ideas. For those of us who are into business you learn the languages of business, accounting, finance, marketing and sales in college.

The question is not whether or not you should go to school, the question for the class of 2014 is what is your college plan and what is the likelihood that your college or university you attend will still be in business by the time you want to graduate.

Still in business ? Yep. When I look at the university and college systems around the country I see the newspaper industry.

The newspaper industry was once deemed indestructible. Then this thing called the internet came along and took away their classified business. The problem wasn't really that their classifieds disappeared. It was more that they had accumulated a ton of debt and had over invested in physical plant and assets that could not adapt to the new digital world.

When revenue fell the debt was still there, as were all the big buildings they had purchased, all those presses they had bought and the acquisitions they had made declined in value, but the debt accumulated to pay for them never went away.

They were stuck with no easy way out.

The exact same thing is happening to our 4 year schools. You can't go to a big state university and not see construction. Why ?

Posted by Jim Zellmer at January 28, 2013 3:37 AM
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