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Why Howard Schultz Is So Successful

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howard schultz billionaire

Howard Schultz is the American chairman and CEO of Starbucks. Although Schultz is most famous for his Coffee business, he was also the former owner of the Seattle SuperSonics and was on the board of directors at Square Inc.

Early Career

howard schultz starbucksSchultz graduated from Northern Michigan University with a Bachelor’s Degree in Communication and proceeded to gain employment as a Salesman, selling appliances for Hammerplast who sold European Coffee makers across the USA. In five years, Schultz had climbed the ladder to become director of sales and he observed that he was selling the most coffee makers to a small coffee business in Seattle, known at the time as Starbucks Coffee Tea and Spice Company. He was selling more to these few stores than he was to Macy’s.

Schultz knew he had to go to Seattle when the increase in numbers never stopped. He was selling more and more coffee makers to them every month. Schultz still fondly remembers the first time that he walked into the original Starbucks and at the time it was only 10 years old and only existed in Seattle.

 

Howard Schultz’s net worth is an estimated $2.6 Billion

 

Howard Schultz and modern Starbucks

 

A year after meeting with Starbucks' founders, in 1982, Howard Schultz was hired as director of retail operations and marketing for the growing coffee company, which, at the time, only sold coffee beans, not coffee drinks. "My impression of Howard at that time was that he was a fabulous communicator," co-founder Zev Siegl later remembered. "One to one, he still is."  Early on, Schultz set about making his mark on the company while making Starbucks' mission his own. In 1983, while traveling in Milan, Italy, he was struck by the number of coffee bars he encountered. An idea then occurred to him: Starbucks should sell not just coffee beans but coffee drinks. "I saw something. Not only the romance of coffee, but ... a sense of community. And the connection that people had to coffee—the place and one another," Schultz recalled. "And after a week in Italy, I was so convinced with such unbridled enthusiasm that I couldn't wait to get back to Seattle to talk about the fact that I had seen the future."  Schultz's enthusiasm for opening coffee bars in Starbucks stores, however, wasn't shared by the company's creators. "We said, 'Oh no, that's not for us,'" Siegl remembered. "Throughout the '70s, we served coffee in our store. We even, at one point, had a nice, big espresso machine behind the counter. But we were in the bean business." Nevertheless, Schultz was persistent until, finally, the owners let him establish a coffee bar in a new store that was opening in Seattle. It was an instant success, bringing in hundreds of people per day and introducing a whole new language—the language of the coffeehouse—to Seattle in 1984.  But the success of the coffee bar demonstrated to the original founders that they didn't want to go in the direction Schultz wanted to take them. They didn't want to get big. Disappointed, Schultz left Starbucks in 1985 to open a coffee bar chain of his own, Il Giornale, which quickly garnered success.  Two years later, with the help of investors, Schultz purchased Starbucks, merging Il Giornale with the Seattle company. Subsequently, he became CEO and chairman of Starbucks (known thereafter as the Starbucks Coffee Company). Schultz had to convince investors that Americans would actually shell out high prices for a beverage that they were used to getting for 50 cents. At the time, most Americans didn't know a high-grade coffee bean from a teaspoon of Nescafé instant coffee. In fact, coffee consumption in the United States had been going down since 1962.   In 2000, Schultz publicly announced that he was resigning as Starbucks' CEO. Eight years later, however, he returned to head the company. In a 2009 interview with CBS, Schultz said of Starbucks' mission, "We're not in the business of filling bellies; we're in the business of filling souls."In 1982, one year after meeting with the founders of the original Starbucks, Schultz took the position of director of retail operations and marketing for the rapidly growing coffee business. At this time, they were only selling coffee beans and not coffee to drink. Zev Siegl, one of Starbucks’ co-founders highlighted Shultz’s “fabulous communication skills” as a major strength.

Schultz was determined to have a big impact on the company from day one and made Starbucks’ mission his own. It was whilst travelling Italy in 1983 that an important idea struck him. He realised that Starbucks should not just sell coffee beans but sell coffee drinks as well. He recalls that it wasn’t just the romantic idea of coffee, it was the sense of community and the connection between the people, the coffee and one another. He couldn’t wait to get back to Seattle and describe how he had “seen the future”.

 

“I think if you’re an entrepreneur, you’ve got to dream big and then dream bigger.” – Howard Schultz

howard schultz billionaireThe company’s founders did not have the same enthusiasm for opening coffee bars within Starbucks’ stores and they insisted that it wasn’t for them. However, Schulz was persistent until the owners finally allowed him to open a coffee bar in a new store that was due to open in Seattle. It was an immediate success and it was attracting hundreds and hundreds of customers per day.

However, the rapid success of the coffee bar confirmed to the owners that they didn’t want to go in the same direction as Schultz and they didn’t want to get too big. A disappointed Schultz left Starbucks in 1985 to open a chain of coffee bars on his own, called Il Giornale and it quickly became successful.

 

“At an early age, my mother gave me this feeling that anything is possible, and I believe that.” – Howard Schultz

 

A couple of years later, Schultz was able to purchase Starbucks with the help of investors and merged Il Giornale with his former employers. He then became CEO and chairman of Starbucks, which was to be known as the Starbucks Coffee Company. Schultz had to use all of communication skills to bring investors around to the idea that Americans would pay high prices for a drink they were used to getting for 50 cents. At that time, most people weren’t aware of the differences between high quality coffee and the instant varieties, this was on top of the fact that coffee consumption was on the decline in the USA.

Schultz publicly resigned as Starbucks’ CEO in 2000, however, he returned as the company’s boss in 2008 and in 2009 he famously said, when describing Starbucks’ mission; “We’re not in the business of filling bellies; we’re in the business of filling souls.”

 

The Continued Success of the Starbucks Coffee Company

 

howard schultz starbucksThe growth of Starbucks has allowed Schultz to be ranked in Forbes magazine’s “Forbes 400” list, which highlights the 400 richest people in the USA.

There is no single company is selling more coffee to more people in more places than Starbucks. The company had expanded to include more than 17,600 stores in 39 countries all across the globe by 2012. By 2014, Starbucks had surpassed 21,000 stores with new stores reportedly opening every single day and the company now attracts in excess of 60 million customers per week.

 

 

Howard Schultz: 6 Habits of True Strategic Thinkers

 

Conclusion

Howard Schultz has combined incredible communication skills, persistence, strategic thinking and a clear vision to impact hundreds of millions of people’s lives and make himself a billionaire in the process.

Schultz’s story teaches us that although others may not share our vision, we have to remain true to what we believe is possible and pursue that vision anyway.

 

Jermaine Harris is a Coach, Trader, Author and Speaker. He is passionate about human potential and empowering others to change their lives in the same way he did. Jermaine believes that the opposite of being 'stuck in a rut' is possible and explains how in his book, The Rut Buster. Get to know Jermaine better at: jermaine-harris.com

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10 Lucrative Buy and Sell Businesses to Start in 2024

The buy-and-sell business model provides opportunities across many niches

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Businesses to start in 2024

In the dynamic landscape of 2024, starting a business that capitalizes on buy-and-sell models can be incredibly lucrative. This article explores ten different models that entrepreneurs can consider. These ventures range from real estate flipping to trading in domains and luxury items, providing a broad spectrum of opportunities regardless of your initial capital or interest area.

1. Car Flipping

Flipping cars can be a very lucrative business venture for an individual with business acumen, an eye for value, and mechanically adept at cars. It involves buying under-priced cars, restoring, and selling them for a profit. For deeper insights and opportunities in this market, refer to sca.auction.

2. Real Estate Flipping

Flipping real estate—be it houses, condos, or even commercial properties—remains pretty solid business, especially in markets where real estate values are on the way up. Investors buy properties relatively low, do rehab or renovation, then sell at a profit.

The success of the area is endowed with a huge potential spotlight, the ability to juggle various elements such as local real estate market knowledge, and efficient management of renovations.

3. Vintage E-commerce

With the advent of technology, it became easy to sell vintage or retro items over the online selling platform. Be it clothes, furniture, or even collectibles, consumers these days prefer something unique that is eco-friendly and which may have a nostalgia quotient in it. Hence, it brings the opportunity to open an e-commerce shop effectively.

4. Domain Flipping

If you have the skill to predict catchy phrases or business names that would be popular in the future, then buying and selling domain names would be a very profitable business. Register prices are available to purchase domains, which later can be sold at high prices to interested parties or businesses that wish to get an early online identity.

5. Luxury Items

One of the most promising buy-and-sell businesses is the luxury market, and what makes it very attractive is its less sensitivity towards economic downturns. Some of the common items in the luxury market include high-end watches, jewelry, and art, rare cars, all with high yields. Most times, items do appreciate, especially when they are limited editions.

6. Sports Memorabilia

While the sports memorabilia trading business can at times seem lucrative, especially when one focuses on big personae or big events, authenticity and rarity can definitely help items fetch top dollar. Provenance and limited supply both go towards inflating their values.

7. Sneaker Reselling

In recent years, the sneaker resale market has exploded, fueled by a commodity of scarce releases and athletic brand collaborations with a list of celebrities. Today, with operations such as StockX and GOAT, it’s really that easy to break into the worldwide market. It’s pretty easy to find your buyers and make a very good profit if you’re targeting the right trend and releases.

8. Book Flipping

Flipping rare and first editions can become a really meaningful, and yes, one more profitable, business for a book lover. Sometimes the signed ones, rare manuscripts, or those early editions of famous novels could sell for thousands of dollars, usually done by collectors or academic institutions.

9. Furniture Upcycling

Upcycling furniture consists of restoring and using second-hand furniture to sell it at a higher price. For the environmentally aware consumer, this business model has great appeal. It could be pretty profitable if done with good taste and talent in design and restoration.

10. Electronics Flipping

Smartphones, tablets, and laptops resell at values significantly high; hence, business ensues. Buy, refurbish, and sell in better condition to appeal to budget-minded consumers looking for technology at more affordable price points. 

Overall, The buy-and-sell business model provides opportunities across many niches. Be it real estate flipping or vintage item upcycling, you can succeed in both models with market understanding and trend application. That, with careful planning and strategic investment, will throw huge financial returns for these business models in 2024.

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How Your Business Can Outmaneuver Your Competitors by 85%

Did you know that companies that master big data can outmaneuver competitors by 85% in sales

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big data strategy

Did you know that companies that master big data can outmaneuver competitors by 85% in sales and more than 25% in gross margins? Sounds inspiring, right? But the thing is that data alone isn’t enough. Rather, it’s the strategy behind it that unlocks these enviable boosts. So, this article explores how to make the most out of your big data and build a strategy that’s functional and competitive. (more…)

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Most Entrepreneurs Fail to Do This and It’s Killing Their Success

Celebrating progress also provides entrepreneurs with the psychological sustenance needed to endure the marathon of building a business

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celebrate your milestones

The journey from a mere concept to a tangible reality is one of the most exhilarating yet challenging paths an entrepreneur can navigate. This odyssey is punctuated by milestones that stand as testaments to perseverance, innovation, and relentless hard work.  (more…)

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9 Ways Augmented Reality Gives Your Business a Competitive Edge

By embracing AR technology, companies can unlock new opportunities for growth, innovation, and success

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augmented reality in business

Leveraging Augmented Reality for Business Advancement: Exploring Applications

In the ever-evolving landscape of business innovation, Augmented Reality in business emerges as a transformative force, reshaping traditional paradigms and unlocking new opportunities for growth and advancement.

Through a comprehensive examination of AR’s capabilities, applications, and business benefits, this article serves as a roadmap for enterprises seeking to harness the full potential of augmented reality to propel their success in the digital age.

UNI.Agency as a forefront developmental agency tailors unmatched digital products and immersive experiences. They help companies outperform their competitors and customers’ expectations. And now, there is time to delve deep into the AR realm.

Gaining Insight into Augmented Reality

From revolutionizing customer experiences to optimizing operational efficiency, AR in retail is poised to drive significant advancements in how businesses operate and engage with their stakeholders.

Augmented Reality (AR) seamlessly integrates digital information and virtual objects into the real-world environment, offering users an immersive and interactive experience through devices like smartphones or AR glasses.

It revolutionizes various industries, from entertainment to healthcare, by enhancing perception and creating innovative opportunities for engagement and exploration in the digital era. AR not only enriches our understanding of reality but also opens up new possibilities for creativity, communication, and problem-solving, making it a powerful tool for businesses seeking to enhance customer experiences and streamline operations in an increasingly digital world.

Differentiating Augmented Reality and Virtual Reality

Augmented Reality (AR) overlays digital elements onto the real world, enhancing the user’s perception of their environment. Virtual Reality (VR), however, immerses users in entirely virtual environments, blocking out the real world. There are some core differences between these two technologies in gear and display approaches:

  • AR enriches reality with digital information, while VR creates entirely immersive virtual experiences.
  • AR typically requires less specialized hardware, like smartphones or AR glasses, while VR often involves dedicated headsets.
  • AR is commonly used for enhancing real-world experiences, such as in gaming, retail, and navigation, encouraging augmented reality shopping. Whereas VR is primarily employed for immersive simulations, training, and entertainment in fully virtual environments.

The Influence of AR on the Customer Experience Journey

As of 2024, Augmented Reality (AR) has evolved into an indispensable tool across various sectors, offering immersive and interactive experiences that seamlessly blend digital elements with the real world.

Stimulating Interest

Augmented Reality (AR) captivates customers by offering visually engaging experiences that spark curiosity and intrigue, enticing them to explore products or services further.

AR’s ability to overlay digital content onto the real world creates an immersive and attention-grabbing experience, drawing customers in and igniting their interest.

Educating and Empowering Users

AR in business empowers users by providing interactive and informative experiences that educate them about products, services, or concepts in a visually compelling manner.

Through AR, customers can interact with virtual models, animations, or informational overlays, gaining a deeper understanding of the features, benefits, or use cases of the offerings.

Exploring Further Depths

AR encourages customers to delve deeper into products or services by offering immersive and interactive experiences that go beyond traditional marketing materials.

By allowing users to explore virtual representations of products in real-world contexts, AR in retail provides a unique opportunity for customers to visualize how offerings fit into their lives, fostering deeper engagement and understanding.

Business Benefits of Augmented Reality

Businesses utilize AR for diverse applications, including product visualization, virtual try-ons, and enhanced customer engagement. In education, AR transforms learning experiences by providing interactive simulations and visualizations.

Additionally, AR has become integral to industries such as healthcare, where it facilitates surgical training and patient education. With advancements in AR technology and widespread adoption, it continues to shape how we perceive and interact with our environment, ushering in a new era of innovation and connectivity.

Let’s look at why AR has become so indispensable as a business tool nowadays.

Revolutionizing Training Methods

AR in business transforms training by offering immersive, interactive simulations that replicate real-world scenarios, enhancing employee learning and skill development.

It’s lucrative for hands-on training experiences. Since there’s no need for physical equipment or environments, reducing costs and logistical constraints while improving knowledge retention and performance.

Boosting Productivity Levels

Augmented Reality in business boosts productivity by providing real-time access to information and guidance, allowing employees to complete tasks more efficiently and accurately.

Through AR-powered tools and applications, workers can streamline workflows, troubleshoot issues, and collaborate effectively, resulting in increased output and operational efficiency.

Implementing Dynamic Marketing Approaches

AR enables businesses to implement dynamic marketing strategies that captivate and engage audiences in unique ways.

By integrating AR into marketing campaigns, companies can create interactive experiences that drive brand awareness, customer engagement, and sales conversions, setting themselves apart in a crowded marketplace.

Fostering Product Development

Augmented reality and marketing foster innovation in product development by facilitating virtual prototyping, design iterations, and collaborative decision-making.

With AR, teams can visualize and test product concepts in 3D, gather feedback from stakeholders, and make informed design decisions faster, leading to faster time-to-market and more successful product launches.

Creating Tailored Customer Experiences

AR creates personalized customer experiences by allowing users to interact with products and services in customized ways.

Through AR-enhanced applications and experiences, businesses can tailor content, recommendations, and promotions to individual preferences and behaviors, enhancing customer satisfaction and loyalty.

Amplifying Brand Recognition

Augmented Reality shopping amplifies brand recognition by providing memorable and shareable experiences that leave a lasting impression on customers.

By incorporating AR into branding initiatives, companies can create immersive brand experiences that spark conversations, increase social media engagement, and strengthen brand loyalty, ultimately driving business growth and success.

Final Thoughts

In conclusion, Augmented Reality in business stands as a transformative force, offering a multitude of benefits across various aspects of operations. From revolutionizing training methods to boosting productivity levels, AR empowers businesses to thrive in an increasingly competitive environment.

By embracing AR technology, companies can unlock new opportunities for growth, innovation, and success, while delivering immersive and engaging experiences that resonate with customers and stakeholders alike.

As AR continues to evolve and integrate into everyday business practices, Uni will incorporate the best practices to promote business advancement and drive meaningful change for the clients. We’re to shape the future of commerce to your benefit.

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