💰 $100 Billion Coffee Beans

Welcome back, Hard Knocks community! 💰 

Welcome back to another session here at the School of Hard Knocks where we share insights into what’s happening within the business world, lessons from entrepreneurs and actionable steps that you can apply into your business and life. Today’s class is all about perseverance and lessons from 8 figure business moguls..

Today’s Schedule

• Hundred Billion Coffee Beans: How Starbucks Went From A Single Location To Over 38,000 Locations

• Free Game: Lessons From an Entrepreneur That Has Four Businesses Doing $10+ Million

• From the Hard Knocks Library: Onward By Howard Schultz

• In Case You Missed It: See our Latest YouTube Video

Lets Get Rolling🔥

Hundred Billion Coffee Beans💰

In 1971, in the heart of Seattle, Starbucks brewed its first cup of coffee. Founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker, Starbucks started as a humble coffee bean roaster and retailer. However, it wasn't until Howard Schultz joined the company in 1982 that Starbucks began its journey to becoming the global coffee powerhouse we know today.

Schultz's vision extended beyond simply selling coffee beans; he wanted to create a European-style café experience in America. Despite facing resistance from the original founders, Schultz was undeterred. In 1987, he acquired Starbucks and set out to transform it into the iconic brand it is today.

Yet, Starbucks' path to success was far from smooth. In its early years, the company faced numerous challenges, including financial struggles, internal conflicts, and skepticism from investors. However, through perseverance, innovation, and unwavering determination, Starbucks overcame these obstacles and emerged stronger than ever.

Lessons Every Entrepreneur Can Get From Starbucks:

1. Embrace Adaptability: Starbucks teaches us the importance of adaptability in the face of adversity. When confronted with challenges, Howard Schultz didn't shy away from change; instead, he embraced it. By pivoting the company's focus from retail to café experiences, Schultz transformed Starbucks into a global phenomenon. As an entrepreneur you always need to remain flexible and open to change, recognizing that adaptability is essential for long-term success.

2. Stay True to Your Vision: Despite facing resistance and criticism, Howard Schultz remained steadfast in his vision for Starbucks. The original founders wanted to stay in the retails space but he believed in creating a unique and immersive coffee experience that resonated with customers. Staying true to your vision, even in the face of opposition, is key to achieving your goals.

3. Prioritize Customer Experience: Schultz was inspired by the cafe culture he saw while on a trip to Italy. He wanted to bring the socializing and interactiveness of those cafes to Starbucks. This change revolutionized the coffee industry by prioritizing the customer experience. From the cozy ambiance of its cafés to the personalized service provided by its baristas, Starbucks created a welcoming environment that kept customers coming back. You should always prioritize delivering exceptional experiences to your customers, understanding that fostering loyalty and building relationships is essential for sustainable growth.

Words of Wisdom

Free Game

In November 2023 we connected with multi-eight-figure entrepreneur Cody Sperber. When Cody was a young teen he saw a man’s name on a billboard on his way to school so he decided to stop by their office one day and he asked "How can I get my name on a billboard?" to the front office lady and she replied "By buying commercial real estate" this was a conversation that would change his life forever.

We did a 30 minute interview with Cody and talked about how he got to where he is today as well as the best lessons he has learned along his entrepreneurial journey.

Our Biggest Lessons From Cody:

1. You Have To Fire Yourself

   Cody runs four companies that do $10+million a year and the only way you can continue to scale and run companies at a high level is by firing yourself. The #1 thing that holds entrepreneurs back from is they try to micro-manage and control every aspect of their business, even down to fulfilling the actual product or service. The CEO of McDonalds doesn’t come in and cook hamburgers for every customer, they don’t cook anything at all. You have to remove yourself from the day-to-day tasks and instead work on decisions that will increase the revenue and longevity of the company.

2. The Best Way To Scale is Vertical Integration

   One of the best ways to increase your revenue and build businesses is by building businesses similar to the one you are already running. If you have a successful home exterior remodeling company where you build decks and patios don’t go start a car wash. Instead consider starting a interior remodeling wing of the company where you can service inside the home as well. This is exactly what Cody did. Cody is in commercial real estate so he started a flooring company to service any of his existing properties and it directly benefits his main business.

3. Sales Cures Everything

   What do you do when your back is against the wall? What do you do if you don’t have the money to pay your bills? You have to sell. Sales cures all. If you are at a point where you have a money problem in your business, you need to look at your outreach process and start looking for ways or new customers that could generate revenue. When sales stop, your business stops growing, and if your business is not growing, it’s dying.

From the Hard Knocks Library

In Case You Missed It

Back in November we visited Scottsdale, Arizona for the first time in Hard Knocks history and let me tell you.. This trip did not disappoint, we were able to meet up with entrepreneurs that are doing 7 to 9 figures a year in industries like Real Estate, Sales, and Finance. Be sure to check it out below and subscribe to our YouTube channel if you haven’t already!🔥

Let Us Hear From You

What was your favorite part about todays newsletter? Please reply back with your answer and feel free to include any ideas or things you would like us to include in future newsletters.