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From scratch to different Starbucks ~ 7&8&9
In this section, the author tells the story of starting a coffee business from scratch. Because the original founder boss of Starbucks didn't want Howard to sell coffee and drinks in Starbucks stores, Howard had to resign and start his own business. From the beginning of financing, Howard, an athlete, overcame all kinds of difficulties with tenacious will and finally opened the first "Everyday Coffee". After gaining a foothold, he bought his old club, Starbucks, which sells coffee beans.

? Howard, let's go for a walk.

My father-in-law patted me on the shoulder and motioned me to the front door. June+February, 5438, an ordinary day in Seattle. It's only five o'clock in the afternoon, the sun has set and it's already dark.

That was 1985, during Ronald Reagan's second presidency. Microsoft has been established for ten years, and "Save Life" is raising money to buy food for Africa by organizing concerts. The Dow Jones index broke through 1500 for the first time. I was 32 years old. I put on a windbreaker coat, put a rope on my dog Jonas, and walked out with my father-in-law. His wife Shirley and his mother Rui stayed at home.

Shirley and I met seven years ago when we both lived and worked in Manhattan. From 65438 to 0978, my lifestyle was the same as that of most young people in new york: I rented a house with some friends in Hampton, a seaside town at the eastern end of Long Island, and we could get together on weekends, away from the high temperature and bad smell of the city. My income is good, but it is not enough to pay my share of the rent, so my friend agreed to let me pay less, on condition that I am responsible for renting the house, which means that my name should be written on the rental agreement, and several people should be charged to pay the deposit, and then the money should be paid on time. Several of us shared the cost of cooking and necessities, and the house was kept clean and tidy.

On a weekend in early July, several of us played football on the beach. There are a group of young women nearby, and they also come out to enjoy the sunny beach. I was attracted by one of them: she had blond curly hair and a bright smile. I went over to chat with her. She is beautiful, easy-going and has a good sense of humor. Besides, I have other feelings for her. That night, I called her. The next day, I asked her if she would like to have dinner with me after returning to work in the city on Monday. Howard turned from an introvert to an extrovert when he grew up. He is so active in picking up girls, haha.

I want to know everything about Shirley Kirsch. I soon learned that she grew up in Lima, a middle-class town in Ohio, and studied political science and psychology at the University of Denver. Later, she was admitted to law school, but went to new york to study interior design. I'm not surprised. She is very fashionable and tasteful. (Typical intellectual and elegant woman)

From the first date, we had a magical fate. We were inseparable. I soon found that she has many requirements for my life partner, including: grand world outlook, intelligence and strong family values. She likes adventure, but she is very rational; Quiet and leisurely, full of movement. She is ambitious, but not arbitrary. I especially admire her confidence. She is very stubborn. As long as she decides the right thing, she won't go back. She is more mature than other women my age know, but she doesn't take herself too seriously. Like me, she has bigger ideas about life, although she doesn't know what life will be like in the future yet. Fate has arrived, and it is estimated that two people have known each other for a long time. )

Not long after I met her, I once invited her to my apartment in Greenwich Village for a birthday party. Halfway through the party, my mother called me. She felt very sad because of things at home. She often calls me for comfort or financial help. I'll answer the phone in the bedroom. It's quieter there I tried to calm her down. I didn't know that Shirley had heard a small part of the call. Later, she told me that my devotion to my mother greatly increased her affection for me. Howard is a filial and responsible young man, so he is probably a good girl to rely on.

Shirley said that she thought I was a responsible person. I am serious, maybe too serious for my 25-year-old age, but I work hard to make a living, and I can also take time to comfort my mother in a bad mood. Being a mother's reassurance is my responsibility since childhood, and I have never neglected my duty. After meeting Shirley, my life was a little easier. This relaxed feeling is one of the many reasons why I fell in love with her. Shirley is the sweet spot in Howard's life.

I married Shirley on 1982. The wedding was in Hampton, and it was very small, only the families of both sides attended. (It's normal to get married after five years.) The banquet after the wedding is only attended by relatives and friends. Weddings are simple and cheap. Shirley is very elegant because she is involved in wedding planning. To me, this thing is like magic. (Gee, Howard has made a lot of money in his life and met such a good wife) I can't believe that the beautiful, intelligent and kind girl I met on the beach turned out to be my wife. Howard's Best Choice in Life

I was fascinated by the idea of opening an Italian coffee bar in Italy, so I left Starbucks and started my own business. In the past eight months, I successfully raised $654.38+$700,000 to start a capital-intensive retail enterprise. I named the company "il Giornale"-"daily coffee", which means "newspaper" in Italian, and another means "every day, every day". My business model is based on the fact that "daily coffee" and espresso bars will become the daily consumption of the public in Seattle and eventually expand to other cities. (this initial heart is very simple. )

I don't get paid in the company, and I have no savings at home. In less than a month, Shirley and I will have our first child. According to our plan, we intend to live on Shirley's interior design income until coffee can raise enough money to pay my salary every day. This wife is so reasonable that they trust each other. )

At first, raising money was surprisingly simple. My former bosses Jerry and Gordon at Starbucks-although they were not interested in me opening an espresso bar-said they believed me and invested $65,438+$500,000. It's amazing, it can make the boss make a lot of money decades later than investment. They even asked me to start a new stove and give me advice. I am very grateful to them for their investment and guidance. The second investor is Shirley's friend. Carol Bobo, she is also an interior designer, and her husband Ron Magris is an obstetrician. Carol told Ron about me and my wife, so they invited us to dinner and wanted to hear my business plan. Shirley and Carol are friends, but Ron and I are not as close as they are, but our two families have a lot in common. Carol and Ron just had a baby. They have a gentle big dog-Irish wolfhound. He likes to play with our dog Jonas on the path by the lake.

Sitting at their table, I prepared my speech. I brought the architectural design, and there is a stack of papers next to my dinner plate. It was a rigorous business plan, which explained how I would use every penny of investors to open a hundred stores. Of course, I first told Ron and Carol about my experience in Italy and how I was attracted by the Italian coffee bar model. I also told them that I firmly believe that this coffee shop experience should have a place in American culture. The more I talk, the more excited I get.

I was about to elaborate on the details of the document when Ron interrupted me: "Howard, we have a good eye for people." Go ahead, how much do you want? "That night, they gave me $654.38 million. The money, they didn't invest in daily coffee, but invested in me and Shirley. I left their house in high spirits, but I know very well that I have my friend's money in my wallet, so I can't lose it or live up to their friendship. (The popularity is really good, which is of great use)

At that time, I was optimistic, and I thought it was as easy to raise the remaining $654.38 +0.4 million as it was to raise this $250,000. I didn't expect it to be difficult.

At that time, I knew nothing about borrowing money from venture capital companies: in the late 1980 s, this financing model was not as simple and popular as it was ten years later. (Howard is also a pioneer in entrepreneurship and knows how to start a business by financing, haha)

I haven't considered getting a loan from the bank either. My parents quarreled about paying the bill. They asked me to answer the phone and cheat the cashier, and asked me to borrow money from my relatives and friends. These shameful memories are still bitter today. Although I know that as a businessman, as long as I can manage my debts well, it is actually not dangerous, and I know that loans are very important for the start of small businesses, but my parents' bad debts made me hate debt. With money, I can buy equipment, pay rent and hire people, but I can't get rid of the anxiety of "debt", so I can't even sleep well if I borrow money from the bank to buy "everyday coffee". The experience of childhood has a great influence on Howard. )

Therefore, instead of borrowing money from the bank, I found someone to invest in me in exchange for shares in our company. With investors, my equity will be diluted, but this is the price of refusing to bear the debt. (Living up to expectations, Howard's Starbucks became the world's number one, with a market value of trillions, and investors unexpectedly cast a miracle. )

After Jerry, Gordon, Carol and Ron invested in me, over the next few months, 100 potential investors rejected my request. They refused me in various ways: some didn't return my calls; Some hang up in the middle of hearing it; Some people hesitated when they met, saying that they would contact me later, but there was no news; Some people boast that they know more about retail than I do, and they don't deny that my ideas about Italian coffee bars and selling drinks with strange names in paper cups are stupid-put them together and I really am like that. Several Seattle business leaders laughed at my idea and condescended to explain why I failed. All kinds of rejections hit me deeply. Sometimes, before meeting potential investors, I have to walk around the block several times to relieve my anxiety. (This feeling is so vivid that the cattle people are moving from ordinary to excellent step by step. There are no myths. )

Many nights, I came home depressed, but I didn't want Shirley to share my stress because she was pregnant. The next day, I got up as usual, walked my dog, and then packed my things and went out. "Today will be very smooth." I cheer myself up. I invite potential investors to have breakfast or lunch; I sat alone at one end of the long table in the high-rise conference room, and the beautiful seaside in Seattle was outside the window. I stated my thoughts over and over again, felt the excitement in Milan cafe over and over again, and integrated my deep beliefs into my grand business plan. (It is estimated that ordinary people have given up long ago)

All kinds of rejections are discouraging. It may be easier to listen to your criticism, but I don't want to compromise. Just because others can't see your goal doesn't mean you can't achieve it. Speaking of this, for entrepreneurs, the boundary between "moving on" and "giving up halfway" is so vague, just between one thought. What's more, even my father-in-law can't stand it. On that cold night in June+February, 5438, he spoke to persuade me to give up. This is embarrassing, but fortunately it didn't work. )

"Howard," Harry interrupted my thoughts, "I admire your efforts last year, but we must face the reality. Shirley goes to work to earn money, but you are busy with your hobbies, but there is no income. My daughter will be born in a month. " He stopped and looked at me like a father. "Son, you have to find a job. You have to support your family. " It's like a bolt from the blue.

When he said this, he had deep respect and sympathy for his fellow entrepreneurs. I am embarrassed. I respect Harry and Shirley. I've thought about it. But hearing someone tell me my inner fear-the life I live now looks like the poverty and irresponsibility of our family when I was a child-simply breaks me down. Has he talked to Shirley before? She agrees with this opinion? The down-to-earth side knows that Harry's words make sense. I feel like watching a bright and beautiful bubble burst with a bang. Standing in front of my beloved father-in-law, I nodded and then I cried. He patted me on the shoulder. In this case, anyone will collapse. . . )

That night, it was late, and I told Shirley about this conversation.

"Your father talked to me today, which was very interesting." Finally, when there were no outsiders, I relayed what my father-in-law said to her. I think, if she also told me to stop raising funds, let me find a job, or even go back to work in Starbucks, I would agree.

"Howard," Shirley said, "we must never give up halfway." The highlight moment of the great wife was born. Without Starbucks, there would be no American coffee culture in the world. )

1986 10, our son Jordan was born.

At the end of that summer, of the 242 people I asked, 30 agreed to invest in daily coffee. One of them is a good man. His name is Jack Rogers, and his investment department rejected my proposal. Nevertheless, he gave me the money himself. There is also a good man, his name is Arnie Prentiss. He not only invested in me, but also introduced me to the clients of his financial services company, who also invested in me. The two biggest investments I received came from my uncle and nephew: Harold Gehrig, who is in the muffler business, and Kenneth Gorelick, a saxophone player. People like Jack and Arnie even have their own reputations. With their help, I raised $654.38+$650,000, and my business plan was implemented. Howard's will is super strong. He has met hundreds of investors and got the start-up funds.

The first is to recruit people. I want to find a capable and friendly person, just like the coffee blender I met in Italy. The person I want to recruit wants to enjoy this job and is willing to work for the company I like. I told every investor that one of my business plans was to build a working resort. Our company should ensure that partners (partners are Starbucks' names for employees) fully express themselves and have the opportunity to live the best life. In fact, from 65438 to 0986, as the leader of the new company, I had already written the company's purpose: "Our coffee bar should improve the working environment of our partners. The reward is not only economic, but also spiritual. We should create a working atmosphere so that every partner can share the growth ... "(This initial venture is great in itself, full of Howard's lack of human care when he was a child, and Howard just wants to change himself and the people around him. )

If we want to develop around the core of "great collective atmosphere in the store", then there must be interpersonal emotional connection within our company. By my side, my partners are enthusiastic about the products we sell. They are ambitious and kind-hearted. (Partner culture is great)

So far, I have met many people whose work experience is completely different from my father's. Shirley, a partner and colleague of Starbucks, and many people I know are nourished by work, which is an experience my father has never had. Howard never forgot his father, but he also broke through this knot, which can be regarded as changing the small world for his father. I want Starbucks to be such a place. From the inside out, I want to start a company for which my father never had a chance to work. Or, as I will say many years later, we should strike a balance between profit and social morality. Our values are human values. Nobleness, integrity, sharing, support, cooperation, care, respect and loyalty are all the ideas of my early company purpose. I also want to add a warm sense of camaraderie: "We should set ambitious goals and try our best to achieve them," the purpose wrote. "This is an adventure. We are in the same boat." Full of humanistic care and sincerity, such an organization will inevitably infect others.