Page created 3/19/09
Starbucks' Howard Shultz and Grant Cardone
By Grant Cardone


I met with Howard Shultz, founder and CEO of Starbucks, last week. I flew to Orlando from Los Angeles where Mr. Starbucks was
holding small town-hall style meeting to a group of his customers. It is amazing to see a guy like Howard Shultz take the time to meet
with, listen to, get feedback, and be open to what his customers like and don't like about going to Starbucks.

What he is doing is further validation of how to expand even during periods of contraction. You don't retreat during contractions you
expand. The media has scared almost everyone into pure retreat without any solutions about what to do! When I speak to management
and business owners, the second step I talk about in responding to economic contraction is the one people are not doing effectively.
You must increase your spending of energy, resources and creativity on anything that can potentially create new opportunities to
produce revenue.

This is one of the major mistakes people are making today as they become scared and contract (stop) on everything.
People in this
country haven't just stop spending money; they have stopped spending their energy and creativity on solutions.
People
unconsciously started conserving everything, when the reality is you should be spending money, energy and resources on ALL activities
that may create new opportunities and new revenue.

If you notice six months ago Mr. Shultz's first action was to identify stores that weren't producing and shut them down. That is the first
step I talk about in my book
Sell to Survive. Most of America has already done (overdone) this first step but have not moved on to the
more important steps.

After cutting back Mr. Shultz is now moving onto his first expansion action by making contact with those in his powerbase. Notice he is
now spending money, energy and resources by reactivating his powerbase. This exact step is discussed in detail in
Sell to Survive. This
step is crucial during all times, but especially during contractions!

If Mr. Shultz, approximate worth of a $1billion, can do this and finds it necessary to do so, then shouldn't you?  He has 166,000
employees and over 4,000 stores in 43 countries. You think you don't have enough time. These meetings are being held between 7pm
and 10pm making for a very long day for him. The fact that you are still working the same schedule that you did in the past is ridiculous
and non-survival.

The economy we are presently in is a "game changer". If you don't change your behavior and apply the right actions you will be
punished. The economy will discipline and punish all those that don't get their head on right, take the right actions, and then take those
actions in the right quantities. There exists an exact and precise step-by-step formula for surviving economic contractions and you need
to know them and use them.

  1. Stop all expenditures and activities that are not productive and not driving in revenue.
  2. Increase the use of money, energy, and resources on ALL activities that may create new opportunities and new revenue.
  3. Put aside yesterday's successes and the memories of "better times."
  4. Realize that the game has changed and it is not "business as usual."
  5. Learn everything you can about selling and promotion so that you will be motivated to sell.

So stop retreating, and start expanding! Do what successful people like Howard Shultz do, get in the game with these actions, and learn
how to expand through economic contraction.

Grant Cardone
Sales Expert and Author

Grant Cardone is a speaker, author, sales trainer and CEO of Cardone Training Technologies.
Author of Sell To Survive and other Audio, Video, and training programs, for more information on Mr. Cardone visit
grantcardone.com.

Grant Cardone, Author of "Sell to Survive".      800-368-5771

Cardone Training Technologies, Inc. •6767 Neptune Place • La Jolla, CA 92037
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