Howard Schultz’s Inspiring Success Story
Howard Schultz is the man who turned Starbucks into a worldwide coffee shop empire. But his path to success wasn’t easy.
He grew up poor and struggled for years before he became successful.
His story shows that with hard work and determination, anyone can achieve their dreams.
A Tough Childhood
Howard grew up in poor housing projects in Brooklyn, New York.
His father was a truck driver who didn’t earn much money. When Howard was 7 years old, his father got badly injured on the job.
The family had no health insurance, so they could barely afford to pay for the surgeries he needed. To save money, the family moved into even cheaper housing that Howard said was like a “modern-day Dickens.”
To escape the stress at home, Howard threw himself into sports. He played football, and baseball, and was captain of his high school baseball team. But his family’s struggles haunted him. Howard later said, “It leaves an indelible mark that fuels your desire to achieve something.”
Deep down, Howard hoped for a better life.
Discovering His Passion – Coffee!
After high school, Howard went to Northern Michigan University on an athletic scholarship. One summer, he worked as a salesperson for a household goods company. They didn’t think Howard was cut out for sales, so they made him work in their new “household division” instead.
This new division was a coffee machine business they had just bought. Although Howard didn’t drink coffee himself, he fell in love with it. He learned everything he could about sourcing, roasting, grinding, and brewing coffee beans. He was amazed at how fascinating coffee was.
The job sparked Howard’s passion for the world of coffee.
First Big Break – Starbucks Coffee
After college, Howard struggled to figure out what to do next. He took a job at a plastics company, but he knew it wasn’t his calling. His big break came in 1981 when he met Gerald Baldwin, part owner of a tiny Seattle coffee bean shop called Starbucks Coffee Company, which had 6 stores.
Baldwin loved Howard’s energy and passion for coffee. He hired 25-year-old Howard as head of marketing and operations for Starbucks Coffee. Finally, Howard had a job where he could pursue his newfound love of coffee.
Sadly, Starbucks was struggling badly. By 1983, two of the six stores had already closed. The Starbucks founders wanted out of the coffee business. But Howard saw huge potential in Starbucks. He wanted to convince them not to give up on it.
Convincing The Starbucks Owners
The Starbucks owners flew Howard to Seattle and told him they were selling the company. On the plane ride home, Howard furiously sketched out a vision showing the untapped potential for a national Starbucks coffee chain.
He asked for one more chance to pitch a plan. At the next meeting, he showed them his expansive vision for how Starbucks could expand across the entire U.S. But they still weren’t convinced. Finally, in desperation, Howard asked “What is it going to take for you to trust me?”
They said they needed $3.8 million by the end of the week to buy the remaining Starbucks stores and keep the company alive. It was an impossible task. But somehow Howard raised the full $3.8 million in record time. Amazingly, Starbucks Coffee now belonged to him and his partners!
Ups and Downs Growing The Company
In 1987 Howard opened his first Starbucks store in Chicago, the first step toward nationwide expansion. But progress was painfully slow. By 1988, they had only 5 stores, despite Howard’s grand vision for hundreds of locations.
Inside the company, tensions rose as Howard and his partners disagreed on the direction. His aggressive growth plans required taking on heavy debt, worrying the others. At one tense board meeting, Howard pounded his fists and declared “We are going to do this my way!”
By 1992, Starbucks had grown to 165 stores. But the company was in crisis. The heavy spending and rapid expansion left Starbucks hemorrhaging cash and deeply in debt. With the company on the brink of bankruptcy, the board fired Howard from his own company.
Refusing To Give Up
Getting fired hurt deeply, but Howard didn’t give up. He told his wife “I’m going to get back in.” He traveled to coffee farms abroad to research how he could improve Starbucks’s coffee quality and experience. He visited over 200 cafes to get inspiration for Starbucks’s format.
In 1994, the Starbucks board realized their mistake. They asked Howard if he’d buy back the now-struggling company from them. Howard raised another $3.8 million from investors and bought back what was left of “his” Starbucks.
An Amazing Comeback
Howard returned wiser and more strategic. He focused on making each Starbucks café profitable before expanding further. He gave store managers more freedom to connect with locals rather than strictly enforcing consistent store layouts.
This approach fueled a phenomenal resurgence. By 1995 Starbucks rebounded with 425 stores and $49 million in sales. In 1996, Starbucks held its historic IPO and became a publicly traded company. Fifteen years after Howard bought it for $3.8 million, his Starbucks shares were now worth $600 million!
But Howard’s comeback was just beginning. Over the next decade, Starbucks exploded into a global sensation with over 16,000 stores worldwide. All from a tiny 6-store chain that almost went bankrupt before Howard Schultz ever got involved.
Key Lessons from Howard Schultz’s Story
- Follow Your Passion
Howard only found career success when he followed his passion for coffee. Don’t be afraid to change course to pursue what you love. Your passion will give you the dedication and energy needed to succeed long term.
- Persist Despite Setbacks
Howard was fired from his own company and had to buy it back after failure. But he never gave up on his goal. All great success stories have setbacks and challenges to overcome first. Persist through the difficult times on the road to victory.
- Connect With People
Howard came back stronger by having store managers connect better with local customers. No matter how big your company grows, success is still all about making human connections. Don’t lose sight of that personal touch.
Howard Schultz’s story shows the timeless lessons of passion, determination, and resilience always pay off. If he had given up after getting fired, Starbucks as we know it wouldn’t exist.
We all face setbacks chasing our dreams. But anything great requires persistence.
Howard’s underdog journey to building Starbucks into a global icon reminds us to never stop reaching for what inspires us!
