Philanthropist and Best Buy founder Richard Schulze and St. Thomas President Rob Vischer discussed Schulze’s achievements and future plans in the Richard M. Schulze Auditorium at the Opus College of Business on April 25 as part of “Finding Forward,” a St. Thomas event series that hosts conversations with influential speakers.
Schulze was raised in St. Paul and in 1996 owned his first company, The Sound of Music. By 1983, Schulze had six stores in Minnesota and renamed them to Best Buy. Best Buy has since expanded to a chain with over 1,400 stores in the U.S. and nearly 500 in other countries — accumulating a net worth of $4 billion for Schulze, according to the Finding Forward website.
As the conversation began, Vischer said that many people expected Schulze to be “sitting with an umbrella drink on a beach somewhere,” in retirement, when in fact Schulze has taken on a new business venture in creating the Aurora Anguilla resort.
“Aurora Anguilla is our expression now of the brand-new initiative for me, and the goal is not wildly dissimilar from Best Buy — to achieve the rank of the most successful electronics specialty realtor in the world — is now one focused around: how do you build the most prominent resort hotel in the world?” Schulze said.
Schulze said some of the highest achievements that the resort has earned in the four years he has owned it include ranking No. 18 in the world for resort golf courses and having six themed restaurants throughout the resort.
“The sale of the product is where it starts,” Schulze said. “Pretty much every retailer in my term sold somewhat the same products and equipment. What I discovered early in my career was a sales directive model, so when a customer came in, their challenge was to buy something that really resonated with the need.”
Schulze said he changed the Best Buy selling initiative in 1985 to focus on selling products that were worth buying. The products had to be more desirable and continue to be more advanced than competitors’.
“Whether that was cables, computers, mice, monitors, keyboards, things that people would need to make their system work really well,” Schulze said. “So in the world of retail, we finished the sale so (products) were more usable, more effective, and if there were any issues, we created the Geek Squad.”
Schulze said that hospitality is different, as customers are now guests, so selling a stay at the resort is not the same as selling a product.
“The inspiration is to take it on and find ways to make the guest experience, as long as they’re on vacation, something that they’ll truly remember,” Schulze said.
Not only is Schulze an advocate for entrepreneurial success, but he has also done notable philanthropic work, pledging to donate at least $1 billion in his lifetime. In 2000, he donated $50 million to St. Thomas in support of the new School of Entrepreneurship, which was named after him.
He also started the Richard Schulze Family Foundation in 2004, which helps to manage all 157 Catholic K-8 elementary schools in Minnesota — contributing hot lunches, teacher training and curriculum management.
“We’re bringing reading to a whole new level,” Schulze said. “You gotta read by third grade, or you’re in deep trouble the whole rest of the way.”
The foundation has connected to child well-being in areas such as healthcare and learning. Growing up in St. Paul fueled Schulze’s ambition for the foundation, hoping to improve the lives of children in underprivileged Minnesotan counties, according to the foundation website.
Entrepreneurship is still his No. 1 drive, as he said he adopts a “never enough” mentality to reach for the highest achievement possible.
Vischer asked him how much of entrepreneurship can be taught and how much of it is something a person is born with.
Schulze answered: “How many people are risk takers? How many people are OK with a little bit of risk? I personally feel entrepreneurship is a learning and a behavior that creates a level of self-confidence in a person that you can be anything that you want to be.”
Nadia Owens, a first-year student and member of the Schulze Entrepreneurship Program, attended the conference after one of her entrepreneurship classes.
“The fact that he‘s doing all of this despite the challenges, you still know that he cares and he’s still trying to do this stuff because it’s what he loves and it’s what he’s passionate about,” Owens said.
Schulze’s words of advice left a mark on the room as after the conference: a line of audience members formed in front of him, looking for further conversation. He said that being a good listener, taking risks and having the drive to achieve one’s goals are some things that will boost aspiring entrepreneurs toward success.
“It’s really inspiring to know that if I really want to go do something, I can go do it as long as I have that passion,” Owens said. “Even if I have challenges, I’ll still be able to succeed.”
Kayla Osiecki can be reached at osie4769@stthomas.edu.
