How Bill Gates' Dad Helped Schultz Buy Starbucks☕

The story of Bill Gates Sr. helping Howard Schultz during his Starbucks acquisition is not only intriguing but also proves how networking with the right people can literally help you achieve your goals.

In 1987, Howard Schultz was just 33 and full of ambition. He wanted to buy Starbucks, a small coffee shop with just six locations.

The founders, Jerry Baldwin, Zev Siegl, and Gordon Bowker, were ready to sell so they could focus on their other business, Peet’s Coffee. Schultz, who had joined Starbucks in 1982 and was passionate about its potential, was ready to match their asking price.

The deal was on the brink of closing, but Schultz faced a major setback.

An investor from his previous venture, Il Giornale, made a higher offer to buy Starbucks, jeopardizing Schultz’s plans. “I can remember that moment as if the world had just ended,” Schultz recalls. Desperate for help, Schultz turned to Bill Gates Sr., a titan in Seattle’s legal world and widely respected in the industry.

Gates Sr. heard the entire story from Schultz himself and agreed to help. “We’re going to take a walk,” he told Schultz, leading him to the office of the competing investor, Samuel Stroum. Gates Sr. stood tall and commanded respect as he confronted Stroum, saying, “I don’t know what you are planning, but whatever it is, it’s not going to happen. Howard Schultz is going to acquire Starbucks Coffee Company, and he’s never going to hear from you again.” Those words were enough to make Stroum withdraw his bid.

With the threat removed, Schultz bought Starbucks for $3.8 million and went on to transform the coffee business, building Starbucks into what we know today.

Thanks to Gates Sr.’s support, Schultz turned Starbucks into a global powerhouse with over 38,000 stores worldwide as of now. Schultz often reflects, “Without Bill Gates Sr., Starbucks wouldn’t be what it is today.”

You should listen to the story from the man himself at:
https://www.instagram.com/reel/C9sRGCdKetQ/

4 Key Takeaways from This Story for Entrepreneurs

1. Network with the Right People: Finding support from well-connected and respected individuals can make a big difference. Bill Gates Sr.’s help was crucial for Schultz.
   

2. Don’t Give Up (It’s all Part of the Journey): Even when things seem difficult or setbacks occur, keep going. Schultz faced major challenges but stayed determined and eventually succeeded.
   

3. Use Your Connections: Having a strong network is very helpful and somewhat underrated even today. Schultz’s relationship with his lawyer friend, who introduced him to Gates Sr., was key in solving his problem.
   

4. Be Fair and Honest: Acting with integrity and fairness helps build trust and respect. Gates Sr.’s fair approach was key in helping Schultz achieve his dream.
   
   
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