Magic Johnson Taught This Amazing Business Technique to Starbucks CEO Howard Schultz and Its Results Will Astound You
Former NBA star Magic Johnson has surely come a long way from his life as a sportsman. Nowadays, he’s playing a different kind of sport, building and developing businesses.
It all started when the then Los Angeles Lakers player moved on from his basketball career, picked up the phone and began calling 20 businessmen he desperately wanted to meet. One of these people happened to be Howard Schultz, Starbucks CEO, and this is how their meeting played out.
POCs and Coffee
During a meeting, Johnson told Schultz about a market segment that the coffee giant hasn’t been paying much attention to initially. The then-business newbie proved his acumen by pointing Schultz to the African-American and Latino markets who, Johnson told the CEO, also like drinking coffee.
He then convinced the Starbucks head to go on a 50-50 deal with him in developing new urban Starbucks locations in under-served neighborhoods. But before setting their plan in motion, Johnson made a few suggestions first.
According to the 59-year-old businessman, he tweaked his Starbucks branches replacing menu items like scones with sweet potato pies and changing the music to appeal more to the tastes of other people as well. Sounds simple, right?
But it worked well. In fact, Johnson ended up having 105 Starbucks locations which lead to the company buying half of his business after their 12-year partnership. Along with Johnson’s sale of his 4.5% stake in the LA Lakers, he reportedly made $100 million from the two deals.
The Importance of Demographics
Getting more confident with his skills, Johnson then brought on his former insights into other business segments like technology and infrastructure.
And at the recent Upfront Summit, he warned Silicon Valley investors about keeping up with the now-changing demographics in the country unless they want to miss out on the same opportunities that he’s noted in the past years.
However, he also clarified that it isn’t all about just finding businesses with minority groups in mind. What’s more important is realizing how a shift in power also results in the changing demographics. As Johnson observed, minorities like him, who used to play for teams, can now own their own teams and make bigger money.
Another important lesson that Johnson learned early on in his business career came from Michael Ovitz, a top Hollywood talent agent who’s also one of the 20 people he called. The agent said one thing to him that he’s remembered until today: ‘surround yourself with the best’.
After that, Johnson began looking for the best accountant, lawyer and manager to help him achieve his goals. He started by going into the bottling plant business and then building his shopping and movie theater from there.
And it all paid off in the end. Johnson now has an estimated $500 million in his name making him one of the most successful African American businessmen today.
More in Business
This is the Real Reason Why Billionaire Kylie Jenner Started Her Cosmetics Company–and It’s Not Because of Money
This year, 21-year-old Kylie Jenner was hailed by Forbes as youngest self-made billionaire ever. And the ‘Keeping Up With the Kardashians‘...September 18, 2019
The Crazy Story About How Comedian Katt Williams Allegedly Lost $59 Million of His Fortune
It’s ironic how it’s actually comedians, whose job is making other people laugh, that usually tend to live troubled and unhappy...September 18, 2019
Robert De Niro’s Large Fortune Finally Unveiled Amidst Divorce Scuffle–Here’s How Much of it He Might Lose in the Settlement
Robert De Niro is one of the most recognized actors in Hollywood. His prolific acting career spans decades and dozens of...September 18, 2019
The Amazing Story of How Will Smith Became a Real Life ‘Fresh Prince’ With an Expansive Real Estate Portfolio
Will Smith has had one of the most interesting career tracks in Hollywood. Starting out as a rapper donning the name ‘The...September 18, 2019
Is It Wise to Roll Your Student Loan as Part of Your Mortgage?
As the debt accumulation in America continues to rise, more people are looking for feasible ways to keep it under check....September 18, 2019
Here’s a Rare Look Inside Hillary and Bill Clinton’s Cozy Home in Washington D.C.– It’s More Colorful Than You’d Expect
Celebrity homes often get the spotlight when it comes to magazine features. So, it’s quite refreshing to see other public figures,...September 18, 2019
Jay-Z and Beyonce Are the Ultimate Power Couple With a Combined Fortune That’ll Make Your Jaw Drop
If the world of popular music has a royal couple, that would probably be Jay-Z and Beyonce. Both individually and as...September 18, 2019
Home Owner? Here’s How To Know If Your Fire Insurance Policy Is Sufficient
According to the founder and CEO of Lionshare Partners, Chris Jackson, a lot of insurers have made consumers’ ability to get...September 18, 2019
Rihanna is Living Her Best Life With Billionaire Boyfriend Hassan Jameel — Here’s Proof
Rihanna has surely gone a long way from her humble beginnings in her home country of Barbados. Not only is she...September 18, 2019