I have have just completed reading “ Pour your heart into it “ by Howard Schultz ( Chairman and CEO of Starbucks). Starbucks has entered a low margin commodity industry and transformed its product into a cultural symbol. Howard Schultz shares the story of how Starbucks built a company one cup at a time.

1. THOUGHTS ON
ENTREPRENEURSHIP AND
RETAIL
FROM THE BOOK
“ POUR YOUR HEART INTO IT “
BY HOWARD SCHULTZ
( CHAIRMAN AND CEO OF
STARBUCKS)

2. • Taking on debt is not the best way to fund a company.
• Best way for an entrepreneur to maintain control is by
performing well and pleasing stake holders even if his or her
stake is below 50%.
• That's risk is far preferable to the danger of heavy debt , which
can limit the possibilities for future growth and expansion.

3. Unlike knowledge based companies retail businesses are
highly capital intensive. When they expand rapidly with
company owned stores , they require repeated injections of
funds for such expenses as build up costs, inventory and
rents. Each time more money is raised the founders stake
diminishes.

4. • Passion alone is no guarantee of remarkable returns.
• Some entrepreneurs fail because their idea ultimately isn't sound.
Others remain short sighted and unwilling to give up control.
Some refuse to bring in more money.
• Passion is and will always be a necessary ingredient .even the
worlds best business plan won't produce return if it is not backed
with passion and integrity.

5. “ In the course of the year I spent trying to raise money, I
spoke to 242 people out if which 217 of them said no. ”

6. • The best ideas are those that create a new mindset or sense a
need before others do.
• It takes a astute investor to recognize an idea that not only is
ahead of its tine but also has long term prospects.

7. You begin imprinting beliefs from day ONE ..later you can't
change these with a lecture in ethics.

8. You will build a much stronger company if you van find a
colleague you trust absolutely , someone who brings different
strengths to the mix but who still shares the values.

9. • Don't underestimate the importance of the early
signals you send out in the course of building your
enterprise and imprinting your values upon it.
• When you take a partner or select employees be sure to
choose people who share your passion, commitment and
goals .

10. • A biz plan is only a piece of paper and even the greatest biz
plan of all will prove worthless unless the people of the
company buy it.
It cannot be sustainable or even implemented properly
unless the people are committed to it with the same heartfelt
urgency as their leader.
• They will not accept it unless they trust the leaders
judgment and understand that their efforts will be
recognized and valued.

11. In building retail brand , you have to create awareness and
attract peoples favorable attention. You have to become in
vogue. You need opinion leaders who naturally endorse your
product.

12. In a store or a restaurant the customers experience is vital.
One bad encounter and you have lost customer for life. If the
fate of your business is in the hands of a twenty year old part
time worker who goes to college or pursues acting on the side,
can you afford to treat him expendable .. ?
People are not a line item .

13. Loosing money - it's a danger sign for most businesses
especially mature , established ones. But for a young
entrepreneurial company full of promise , losing money would
be a healthy sign that it's investing ahead of the growth curve.
If you aspire fast growth , you need to create an infrastructure
for the larger enterprise you are planning to create.

14. New enterprises have to invest ahead of the growth
curve

15. Advice to entrepreneurs:
Once you have figured what to do ,find someone who has
done it before. Find not just talented executives but even
more experienced entrepreneurs and business people who can
guide you. They know where to look for mines in the mine
field.

16. When companies fail or fail to grow , it's almost always
because they don't invest in people , the systems and the
processes they need.

17. Without romance and vision a business has no soul.
But a company cannot survive itself in exhilarating ideas alone. Many
business visionaries failed because they could not execute.
Processes and systems, discipline and efficiency are needed to create a
foundation before creative ideas can be implemented and
entrepreneurial vision can be realized.

18. Offense scores points; defense wins games.
“In business the front room is what the world sees : In our
case , the coffee, the stores , the style, the brand.
But the back room is where we win. The efficiency of back
room is really what drives financial success.
Many of the hardest working and most committed partners
work in the less visible jobs at the back end.
Accounting , legal, finance and planning , production and
MIS.”

19. Deciding when to make compromises to please customers is
one of the trickiest questions any business faces. Every
business must stand for something -at the core should be an
authentic product. We also believe we should "just say yes" to
customer requests.

20. A lost customer is the most powerful argument you
can make to a retailer.

21. Running a public company is a emotional roller coaster. In
the beginning you accept congratulations as if you really
deserve them. When the stock prices falls, you feel you have
failed.
At some point you have to divorce yourself from the stock
price and just focus on running the business.

22. At certain stage in company's development , an
entrepreneur has to develop into a professional
manager.

23. To stay vigorous , a company needs to provide a stimulating
and challenging environment for all these : The dreamer, the
entrepreneur , the professional manger and the leader.
If it doesn't , it risks becoming yet another mediocre
organization.

24. Price hikes tended to be easy , short term fixes that
discouraged the hard work of lowering costs and improving
efficiencies.

25. The business that thrive over the long haul are likely to
understand that cost cutting and revenue growing aren't
mutually exclusive .
Eternal vigilance to both the top and bottom lines is the new
ticket to prosperity.

26. Word of mouth -best way for building a brand
You can do it one customer at a time, one market at a time
By WoM , with patience and discipline over a period of years ,
you can elevate a local brand to a great national brand. One
that remains relevant to individual customers and
communicates for years.

27. In this ever changing society , the most powerful and
enduring brands are built from the heart.
Mass advertising can help build brands, but authenticity is
what makes them last. If people believe they share values
with a company they will stay loyal to a brand.

28. The number one factor in creating a great enduring brand is
having an appealing product. There's no substitute.
“In Starbuck’s case our product is a lot more then coffee.
Customers choose to come to us for three reasons.. our coffee,
our people and the experience in our stores.”

29. MARKET ENTRY STRATEGY
Pre launch :
Hiring local public relations firm to help us understand the heritage and concerns of a given city.
For new market entry we planned at least one big community event to celebrate our arrival with proceedings to
local charity..invite local leaders.
Friends and family of local employees , local share holders, mail order are invited.
Influencers are sent two free drink coupons with note asking them to " share Starbucks with a friend".
Tastings with local reporters , food critics ,chefs and owners of well regarded restaurants.
To give our baristas a chance to practice , we let them invite their friends and family to pre opening parties
where the coffee and pastries were free with a suggested 3dollar donation to local non profit group.
Throw a grand opening party usually the sat day after the store opened , sometimes with thousands attending.
In weeks after each opening , we often set up a reward system to thank customers for their repeat business.

30. Good design is not pretty colors. Its putting something out of
reach and making people go get it.

31. To be a enduring at great company you have to build a
mechanism for preventing and solving problems that will
outlast any one individual leader.

32. THANK YOU !