There are very few inspiring entrepreneurs with self-confidence like Howard Schultz, a man who didn’t give up on his dream even after receiving 90% rejection. From a penniless family background and a struggling childhood, Howard Schultz rose to become one of the most successful and wealthiest business leaders in the world. As the CEO of Starbucks, Schultz transformed the company into a global powerhouse, and his net worth is staggering. In this post, we will explore how Schultz’s determination and vision led him to overcome obstacles and achieve unparalleled success. So, sit back and join us as we uncover the inspiring story of Howard Schultz.
Schultz was born into the lower-class lifestyle of the Brooklyn housing projects. Starting from his childhood, he always felt like he was constantly hearing the word “no” instead of “yes.” Nevertheless, Schultz persevered and eventually created the fifth-largest food chain in the world. Howard Schultz currently ranks 728th on the list of the world’s wealthiest people, with a net worth of $3.9 billion. He was born on July 19th, 1953, to a family that didn’t have much financial stability. His mother worked as a receptionist, while his father, a World War II veteran, drove a diaper delivery truck. They never had the opportunity to go to college, but they were dedicated to providing for their family and found joy in their labor. In an interview, Schultz said that he was not sure if they ever had the chance to truly enjoy life.
When Schultz’s dad injured his ankle while working, it was a major blow to his family. His family didn’t have much money, and the medical expenses were starting to pile up. It was hard to witness people who worked hard not being able to make ends meet. It was at this time that Howard Schultz made a promise to himself that he wouldn’t let anyone else go through the same situation. Most people start their first job at 18, but Schultz was only 12 when he started selling newspapers and working in a café. His childhood wasn’t really like other kids’, as he was rarely able to just be a kid, instead, Schultz was busy trying to make money. Although he wasn’t the best at academics, he was great at American football, which was an escape for him. He got a scholarship to Northern Michigan University and became the first person in his family to go to college. Schultz was aware that he wouldn’t become a professional football player as he always wanted to be educated.
All his effort paid off; Schultz was the first in his family to finish college. He juggled various jobs, and he was always determined to achieve what he had in mind. At 26, Howard Schultz became Vice President of Sales for a Swedish housewares firm—no, not Ikea, in case that’s what you’re thinking. Sure, this might look like success to some, but it wasn’t the path to joy, happiness, or contentment for the future billionaire. I mean, Vice President isn’t a role someone his age usually has, but it didn’t make Schultz feel content. For him, there wasn’t any joy or satisfaction.
1981 was a time when coffee was nothing more than a way to get through the workday, when Schultz encountered a shop that was making large orders for one of his products, a drip coffee maker. The two owners were selling whole beans, teas, spices, and accessories for making coffee. He could sense the zeal and affection they had for something as basic as coffee, which surprised Schultz. Coffee, can you believe it? Thus, he knew that this was the place for him. He was enthralled by what they had created and their enthusiasm for something that had been so disregarded, and so Howard Schultz called, asked, and visited them for a year, annoying them enough that they eventually made him their director of marketing. On a business trip to Milan a year later, it opened his eyes to the different perspective of coffee-drinking culture in comparison to America. In an interview, Schultz has mentioned that he remembered when he first went to a coffee shop and saw people savoring each sip. That wasn’t just an average beverage; it was an experience, a place people visited to catch up, have conversations, and savor the taste of a well-crafted cup of coffee. It was then that Howard Schultz had what he felt to be his second
“eureka moment”. Then, he shared his vision with the owners, but they wanted to remain devoted to selling wholesale items, not single servings. Their reluctance is understandable, as most Americans didn’t even know what a latte was. That’s why, Schultz made the decision to open his own café. However, his main challenge was trying to collect 1.6 million dollars in a year. Unfortunately, Schultz only got a resounding “no” from 242 people he spoke to, with 90% of them saying it was a bad investment, that it wouldn’t be profitable. He was discouraged, and even began to doubt his idea, but Schultz didn’t let the rejection stop him as he was there to turn his dreams into reality. Even though he didn’t receive the full 1.6 million, he got enough to open his first café, Eel Jane.
Despite making so many mistakes in his first store, Howard Schultz was able to quickly learn from them and make something of them, eventually reaching annual sales of half a million dollars. He was getting closer to his ultimate goal, although something was still not quite there. Remember that shop he had to be part of and work for? Well, the owners of the shop he had used to work for decided to sell their business, and Schultz just couldn’t let it go. So in 1987, Howard Schultz bought their six stores for $3.8 million and merged them with himself, becoming the CEO of Starbucks Coffee. Yes, the first coffee shop he ever set foot in, worked for, and eventually purchased was the beginning of what is now Starbucks. Although it didn’t look like it does now, he managed to transform it into a widely known business. People thought he was crazy and that it wouldn’t work, but now it’s grown to be more than just coffee—it’s a place to socialize, study, and feel at home.
There are now more than 35,700 Starbucks stores in more than 84 countries, employing over 400,000 people.
Nonetheless, that’s not where Howard Schultz found fulfillment. He was finally able to provide something meaningful to each Starbucks employee, which he referred to as stock options, free medical care, dental coverage, pension plans, adoption assistance, and free college education to all of his employees. Schultz’s dad passed away before he could witness his son’s accomplishments, yet Howard Schultz figured that his father would be pleased to see that Starbucks is giving hardworking people benefits he had missed out on or was not able to provide. Howard Schultz wasn’t the original creator of Starbucks Coffee, but his aim was to create a bond between man and coffee, and that is what he eventually achieved. To be honest, Schultz’s greatest ambition was to establish a company his father was never able to work for, a business that treated their workers the way his dad and family deserved. It wasn’t about the cash, the profits, or the potential wealth. It was about the people he was able to help. This is the greatest success Howard Schultz has achieved, and he is the “rags to riches” story who built the Starbucks coffee company into one of the world’s most recognizable brands.