When Howard Schultz decided to enter into a coffee-business, he only has one purpose, and that is to enhance the relationship of the people with their coffee. Today, he is known to be the man behind one of the most admired brand, Starbucks. And he has successfully amazed a fortune amounting to $3 billion. But his journey toward success is not as easy as you might think.
The Success Story of Howard Schultz
Howard Schultz was born on the 19th of July, 1953 in the projects at Brooklyn, New York. Growing up in this part of the country has exposed him to the huge disparity of the wealthy and the poor. He experienced the life of the poor at a very young age. When he was young, his father was working as a truck driver. During one time while his father while delivering diapers, the ankle of his father accidentally broke. They have no means to apply for insurance, and the company did not provide them with compensation. Their family was left with no means of income.
During his high school years, Howard Schultz has earned a scholarship by playing football at the Northern Michigan University. When he entered college, Schultz decided to stop playing football. In order to pay for his tuition, he applied for a student loan and take different jobs. Occasionally, he will also sell his blood in order to make money. After his graduation, he decided to work in a ski lodge for a year. Afterwards, he landed on a job at the sales department of Xerox. Unfortunately, he found his work unfulfilling, so he quit the job after 3 years. He will then work in a houseware enterprise named Perstorp.
It was during that time when Howard Schultz would stumble upon a small coffee shop in Seattle named Starbucks. He was so interested with this coffee shop that he decided to meet with the original owners, Gordon Bowker and Gerald Baldwin. After a year, he persuaded the company to hire him. He became the director of the marketing and the retail operation. At this time, Starbucks only has 3 shops, but they were already selling coffee grounds for home use.
The fate of Howard Schultz will forever change during the international event in Milan. He encountered establishments that are serving coffee and lattes to their customer, and they know their clients by their name. This helped him understand the relationship of the people with their coffee. He presented the idea of cultivating this same experience for their customers, but the company rejected this idea, so he decided to leave Starbucks and set-up his own company named Il Giornale. In order to realise his dream, he had to raise $1.6 million. He talked to at least 242 individuals who all rejected his idea.
He decided to focus on cultivating this coffee experience to their customers, and it was an instant hit. After 2 years, the company bought Starbucks which only has 6 stores at that time. By the year 1992, they already have 165 stores; they started to go public which successfully pulled a total of $93 million in revenue. Nowadays, Starbucks have more than 21,000 establishments in more than 65 countries.