Bank on Banking

I did horrible on my SAT and GMAT. I did, however, land a job at a bulge bracket. Am I doomed to be a bad banker since I did poorly on my tests?

Haha – ironically, I have heard this question numerous times, so rather than answer each person individually, let me assure all of you that your performance on standardized tests does not correlate to how good or bad of a banker you will be. Just because many BBs ask for these scores does not mean that they mean anything in terms of your performance – they are more a means of weeding people out (than predicting incoming success) since many times, the smarter candidates do better on those standardized tests, which is how they got into the target schools, etc. All of that said, with a great GPA, you are probably smart enough to handle the job, and since you got an offer, the BB agrees that you are indeed smart enough and more than capable enough. Forget the SATs – you’ve got the offer – now it is about making the most of the opportunity.

I’m seeking some advice regarding the summer internship hunt. I recently started looking for opportunities, and so far, I’ve been applying through the usual avenues: predominantly my college career center. In your opinion, is Craigslist a legitimate internship source? Also, is Doostang worth the membership fee? Finally, does it matter if I secure a PE, VC, HF, or boutique ibank internship this summer (I’ll be a rising junior) if my goal is to secure an ibanking summer analyst position next summer? Would they all put me on more or less equal footing?

First, let me say that while there is a lot of junk on Craigslist, there is also some quality. My first internship (for example) in investment banking with a small boutique was posted on Craigslist – I sent my resume and cover letter, got the interview and landed the gig (not quite that easy, but you get the point). During that internship I worked on 2 live deals, performed a lot of modeling, drafted/revised many docs and pitch books, etc – all-in-all it was a great first step and definitely helped me to stand out above many other candidates going into FT recruiting.

That said, I do not know as much about Doostang – I know that some people use it, but I’m not sure if LinkedIn might not be as valuable (if not more so) nor whether Doostang is really worth what you will put into it – especially as a sophomore going for internships.

Regarding internship opps, as a soph going for summer internships, any of the 4 will certainly help you, but as with everything, there is still a hierarchy. Boutique IB and P/E would be top of the list, followed by VC and HF – depending on the type of VC and HF and the type of work you will be doing there (how relevant to IB – any modeling work, financial analysis, etc). All of this, however, assumes that the opportunities in question are on a level playing field – in other words, small boutique IB vs. small boutique VC – NOT small boutique IB vs top HF (yes, it sounds a bit absurd, but it’s an extreme example to make a point). If there is an internship with a solid MM company, or bigger name company, you should generally go with that over a no-name shop. The exception here is if the bigger shop is purely going to be admin work (or is BO) while the smaller shop is concrete IB/FO. As a soph, however, all of the 4 fields you listed will certainly help to enhance your resume and strengthen your candidacy as you go into junior year.

Is it wise to bring up MBA plans in an interview? And if so, how would you do it? I just don’t want the company to think I am planning to stick around for 5, 10, 20 years.

Short and sweet: during the interview leave the MBA go-getter attitude at home. At the end of the day, there is no upside to mentioning your interest in an MBA and a lot of downside. If you tell the firm of your intention, many firms will not even strongly consider you, since they don’t think you have an interest in growing with the firm – more that you are using it to kill some time and build a bit of experience before B school (this is especially true with smaller firms or firms in general that don’t have structured drop-off points such as BB analyst programs – where it’s 2 or 3 and then what’s next).

To address your issue, while some bosses might be upset if you leave after 2 or 3 years when they thought you would be around for more like 5, the fact is, people’s goals and their ambitions/passions all change and while you didn’t think an MBA was for you 2-3 years ago (whether true or not), now you feel it is the right move at this point. The fact is most bosses won’t be upset and as long as you’ve done good work, you should have built a solid relationship and one in which they will support you in your efforts as you’ve supported your team. If you go and break this news before they know you, before you’ve even got an offer, you’re essentially saying “if you want someone committed and in it for the long haul, at least at this point, look elsewhere.”

Don’t knock yourself out before you’re even in. In this case, I like either rejecting the notion of B school or saying that it is a possibility, but definitely more of a back-up plan – your ultimate goal is XXX (and of course align it to what you are interviewing for). If you have the GMAT on your resume, then you will want to go with the 2nd strategy and be definitive in your plans – don’t flip-flop and say that maybe B school, it all depends on how you like it, etc – say you want position X – period.

What are some typical volunteer-type things that people do in order to prepare their resumes for MBA application process?

It really depends on your interests, the amount of time you have, and whether you are willing to invest in an opportunity. For example, any number of mission trips or overseas trips would be great if you had an interest, a bit of capital, and, of course, the time. You can find some with Habitat for Humanity or a ton of opportunities in several fields on Idealist.org.

If you don’t have that level of interest or lack one of the resources necessary, move on to whatever interests you most. If you want to be a mentor, go with Big Bro/Big Sis, or some other avenue in a similar capacity. If you want to help students, then look into tutoring or after school assistance – there are numerous opportunities here. If you want to build something with your hands, you can always go with one of my favorites – Habitat for Humanity through one of its many affiliates across the country (or on a 1-week or 2-week mission trip overseas). There are administrative opportunities with United Way and others and a host of other opportunities across many different fields.

Honestly, find what you like the most and can give yourself to with the most ease and passion – that is where you will find the most support in your business applications and life in general. Remember, think of yourself as a complete person, don’t just think B school – the incidental result will be a much stronger point to sell your B school apps anyway.