Lesson #1: Think Like An Athlete
“You have to have a great tolerance for pain!” exclaims Schultz in reference to the qualities that make a successful entrepreneur. “You have to work so hard and have so much enthusiasm for one thing that most other things in your life have to be sacrificed.”
Around the world, Schultz has become a model of success, an entrepreneur to whom others look up to. But, that was not always the case. From struggling hard to escape the cycle of poverty that had entrapped his family throughout his childhood to having his idea of the Italian espresso bar in America laughed at, Schultz had to practice endurance; he had to persevere despite all the obstacles on the path to his dreams.
“I was turned down by 217 of the 242 investors I initially talked to,” says Schultz. “You have to have a tremendous belief in what you're doing and just persevere. The three venture capital firms we ended up with in 1989 are still on the board today and have been an invaluable resource.”
Schultz claims that it was a fear of failure that initially drove him to succeed. He had been afraid of ending up in low-paying jobs like his father, thus strove to be the first in his family to graduate from university. Once he had his idea for Starbucks, he worked day and night to realize his dream, never giving up. “As I tackled each challenge, my anxiety was replaced by a growing sense of optimism,” says Schultz. “Once you overcome seemingly insurmountable obstacles, other hurdles become less daunting.”
In addition to pain endurance, Schultz says that key to running a business is maintaining balance in his life – something he learned the importance of while playing sports in college. “I've gotten much better about this, and I'm very disciplined about the things I won't do, like travel on weekends,” says Schultz. “I try to be home for dinner with my family most nights. I've learned a balanced personal life makes for a more productive business life. Feeling great about your family life adds value to the company.”
Despite all the challenges Schultz faced growing up, he claims that it was those very things that enabled him to succeed later on in life. “I've heard that some coaches face a curious dilemma, says Schultz. “The world-class athletes on their teams – the players with the best skills and experience – sometimes falter when it comes to crunch time. Occasionally, though, there's a player on the team, a blue-collar guy whose skills and training are not quite world-class. Yet at crunch time, he's the one the coach sends out to the field. He's so driven and so hungry to win that he can outperform the top athletes when it really matters.”
Schultz was that guy – the one who was so hungry to succeed that there could be no stopping him. Indeed, he withstood the pain, overcame the hurdles and rose to the top of his game.
Lesson #1: Think Like An Athlete
CULLED FROM WWW.EVANCARMICHAEL.COM
Saturday, January 10, 2009
Thinking Outside the Cup: Starbucks Is Borne
It wasn't until I discovered Starbucks that I realized what it means when your work truly captures your heart and your imagination,” said Schultz.
After being rebuffed by the owners of Starbucks for his idea of taking the company in new directions, Schultz decided to leave and start a company of his own. He approached numerous investors for financial backing until he finally found support for his project. Several Starbucks partners were even willing to invest in him. In 1984, Schultz opened Il Giornale coffee bar in Seattle.
Il Giornale was Schultz’s takeoff of the Italian espresso bar concept he had fallen in love with in Milan. It was a small, friendly café, which soon became a popular gathering place for the Seattle sophisticates. As its popularity took off and Schultz planned for the expansion of his chain, he heard a rumor that one of the Starbucks partners wanted out of their business. He immediately seized the opportunity and put together a group of investors to make an offer, one of whom was Bill Gates, Sr.
In 1987, Schultz bought out all the partners of Starbucks for $3.8 million and merged Il Giornale and Starbucks to form the Starbucks Corporation. From that point on, there was no looking back for the company. Once Schultz took the helm of the company, he set about making his dream a reality. He created a relaxed and comfortable atmosphere, where customers could not only enjoy a basic cup of coffee but could enjoy an entire experience. He also instituted one of the most thorough training programs and compensation packages for all his Starbucks employees.
Schultz continued its steady expansion, immediately opening their first outlet outside of Washington State. After five years, the company went public and growth continued throughout North America. It then began expanding overseas, opening outlets in Japan. By 1992, there were 165 Starbucks locations; just two years later, there were 425. Sales increased from $100 million in 1993 to $465 million in 1995. New stores continue to open up around the world; 1,500 new stores were planned for 2006.
Starbucks is the number one specialty coffee retailer in the U.S. Schultz succeeded in creating a nationally recognized brand and creating a loyal culture of premium coffee drinkers. He popularized the café latte, the frappuccino and other specialty drinks. In 2004, Starbucks was ranked number eight on Fortune magazine’s list of “America’s Most Admired Companies.” Today, there are over 10,000 Starbucks stores in over 30 countries.
Following from his love of sports, Schultz was also the owner of the NBA’s Seattle Supersonics until recently, when he sold the team to investors from Oklahoma City for $350 million. He also owned the WNBA’s Seattle Storm and is a partner in Jamba Juice, a chain of smoothie restaurants with over 500 locations throughout the U.S.
From the blue-collar life in the projects to an estimated net worth of $700 million, Schultz also continues to stay true to his roots by giving back to the communities that support him.
CULLED FROM: WWW.EVANCARMICHAEL.COM
After being rebuffed by the owners of Starbucks for his idea of taking the company in new directions, Schultz decided to leave and start a company of his own. He approached numerous investors for financial backing until he finally found support for his project. Several Starbucks partners were even willing to invest in him. In 1984, Schultz opened Il Giornale coffee bar in Seattle.
Il Giornale was Schultz’s takeoff of the Italian espresso bar concept he had fallen in love with in Milan. It was a small, friendly café, which soon became a popular gathering place for the Seattle sophisticates. As its popularity took off and Schultz planned for the expansion of his chain, he heard a rumor that one of the Starbucks partners wanted out of their business. He immediately seized the opportunity and put together a group of investors to make an offer, one of whom was Bill Gates, Sr.
In 1987, Schultz bought out all the partners of Starbucks for $3.8 million and merged Il Giornale and Starbucks to form the Starbucks Corporation. From that point on, there was no looking back for the company. Once Schultz took the helm of the company, he set about making his dream a reality. He created a relaxed and comfortable atmosphere, where customers could not only enjoy a basic cup of coffee but could enjoy an entire experience. He also instituted one of the most thorough training programs and compensation packages for all his Starbucks employees.
Schultz continued its steady expansion, immediately opening their first outlet outside of Washington State. After five years, the company went public and growth continued throughout North America. It then began expanding overseas, opening outlets in Japan. By 1992, there were 165 Starbucks locations; just two years later, there were 425. Sales increased from $100 million in 1993 to $465 million in 1995. New stores continue to open up around the world; 1,500 new stores were planned for 2006.
Starbucks is the number one specialty coffee retailer in the U.S. Schultz succeeded in creating a nationally recognized brand and creating a loyal culture of premium coffee drinkers. He popularized the café latte, the frappuccino and other specialty drinks. In 2004, Starbucks was ranked number eight on Fortune magazine’s list of “America’s Most Admired Companies.” Today, there are over 10,000 Starbucks stores in over 30 countries.
Following from his love of sports, Schultz was also the owner of the NBA’s Seattle Supersonics until recently, when he sold the team to investors from Oklahoma City for $350 million. He also owned the WNBA’s Seattle Storm and is a partner in Jamba Juice, a chain of smoothie restaurants with over 500 locations throughout the U.S.
From the blue-collar life in the projects to an estimated net worth of $700 million, Schultz also continues to stay true to his roots by giving back to the communities that support him.
CULLED FROM: WWW.EVANCARMICHAEL.COM
THE STORY OF HOWARD SCHULTZ
The Coffee King: Howard Schultz is Born
“I wanted to be in charge of my own destiny,” says Howard Schultz. “It may be a weakness in me: I'm always wondering what I'll do next. Enough is never enough.” Schultz used this weakness to his advantage, taking the U.S. by storm with his vision of a coffee shop the likes of which the country had never seen before. Today, as a so-called ‘third home’, Starbucks has revolutionized not only the coffee industry but also society at large.
Howard Schultz was born on July 19, 1953, in Brooklyn, New York as the oldest of three children. He grew up in Bayview Project, a government-subsidized housing unit. His family had little money and both parents worked long hours to try and support the family. Growing up, Schultz spent most of his time playing sports, taking a particular liking to football, baseball and basketball. He found that he quickly excelled in each of these in high school and used it to his advantage, receiving a football scholarship to Northern Michigan University.
Schultz was determined to escape poverty and become the first member of his family to graduate from college. In 1975, he realized his dream and earned his bachelor’s degree in business and marketing. But, while Schultz’s academic career was soaring, his family life was taking a turn for the worse. His father was starting to suffer from the never-ending stream of low-paying, dead-end jobs he was forced to work. “I watched my dad’s self-esteem fracture,” Schultz would later recall.
Nevertheless, Schultz was determined to make more of his own life. After graduating, Schultz moved back to New York and got a job working for Xerox Corporation. He then switched to working as a salesman for Hammerplast, a Swedish housewares company. When he noticed that he was selling many coffee percolators to a little Seattle-based company, Schultz flew out to see why.
In 1981, Schultz met with Gerry Baldwin, one of the owners of Starbucks, and he immediately fell in love with the company and the concept. In less than one year, Schultz had left Hammerplast and had become Director of Retail Sales for Starbucks. But, Schultz’s vision for the company soon took a different turn from its original owners.
When Schultz first joined Starbucks, it had 12 retail outlets and was dedicated to selling coffee beans and coffee-related products. In 1983, Schultz went on vacation to Milan, Italy, and became infatuated with the idea of coffee bars, places where gourmet coffee was served not in beans, but by the cup, and where people could come to meet and relax. “I believed the relationship I saw between people and coffee in Italy was transferable to America in a big way,” he said.
“Great companies recognize who they are and who they are not,” said Schultz. “But they must have the courage to examine transformational opportunities”. The owners of Starbucks disagreed with Schultz’s vision. They had little desire to expand their company in the way Schultz was proposing. But, confident in his idea and the untapped possibilities, Schultz left Starbucks and started out on his own.
CULLED FROM:WWW.EVANCARMICHAEL.COM
“I wanted to be in charge of my own destiny,” says Howard Schultz. “It may be a weakness in me: I'm always wondering what I'll do next. Enough is never enough.” Schultz used this weakness to his advantage, taking the U.S. by storm with his vision of a coffee shop the likes of which the country had never seen before. Today, as a so-called ‘third home’, Starbucks has revolutionized not only the coffee industry but also society at large.
Howard Schultz was born on July 19, 1953, in Brooklyn, New York as the oldest of three children. He grew up in Bayview Project, a government-subsidized housing unit. His family had little money and both parents worked long hours to try and support the family. Growing up, Schultz spent most of his time playing sports, taking a particular liking to football, baseball and basketball. He found that he quickly excelled in each of these in high school and used it to his advantage, receiving a football scholarship to Northern Michigan University.
Schultz was determined to escape poverty and become the first member of his family to graduate from college. In 1975, he realized his dream and earned his bachelor’s degree in business and marketing. But, while Schultz’s academic career was soaring, his family life was taking a turn for the worse. His father was starting to suffer from the never-ending stream of low-paying, dead-end jobs he was forced to work. “I watched my dad’s self-esteem fracture,” Schultz would later recall.
Nevertheless, Schultz was determined to make more of his own life. After graduating, Schultz moved back to New York and got a job working for Xerox Corporation. He then switched to working as a salesman for Hammerplast, a Swedish housewares company. When he noticed that he was selling many coffee percolators to a little Seattle-based company, Schultz flew out to see why.
In 1981, Schultz met with Gerry Baldwin, one of the owners of Starbucks, and he immediately fell in love with the company and the concept. In less than one year, Schultz had left Hammerplast and had become Director of Retail Sales for Starbucks. But, Schultz’s vision for the company soon took a different turn from its original owners.
When Schultz first joined Starbucks, it had 12 retail outlets and was dedicated to selling coffee beans and coffee-related products. In 1983, Schultz went on vacation to Milan, Italy, and became infatuated with the idea of coffee bars, places where gourmet coffee was served not in beans, but by the cup, and where people could come to meet and relax. “I believed the relationship I saw between people and coffee in Italy was transferable to America in a big way,” he said.
“Great companies recognize who they are and who they are not,” said Schultz. “But they must have the courage to examine transformational opportunities”. The owners of Starbucks disagreed with Schultz’s vision. They had little desire to expand their company in the way Schultz was proposing. But, confident in his idea and the untapped possibilities, Schultz left Starbucks and started out on his own.
CULLED FROM:WWW.EVANCARMICHAEL.COM
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