Based in the San Francisco Bay Area, Biz Incubators, Inc. provides venture capital for promising start-ups under the guidance of President Chris Hantz. An experienced investment and business professional, Chris Hantz helps these start-ups build the business infrastructure necessary to support their growth and ensure continued success. Unfortunately, an excellent product does not guarantee profitability in today’s competitive marketplace. Adopting innovative and efficient business models and processes often becomes even more important than the product. For example, Microsoft, one of the most successful corporations in history, remains a technological leader by immediately adapting to new challenges. Perhaps even more importantly, Microsoft developed software that appealed to individuals outside of the technology industry and adopted a model that intricately entwined all products. Even though Microsoft released its Internet Explorer product relatively late, the company still dominated the browser market by attaching the program to its other successful applications.
In the same vein, Chris Hantz recognizes that Dell revolutionized the way that people purchase personal computers by adopting a process already used by Toyota Motor Sales, U.S.A., Inc. and applying it to the technology industry. Through this business model, Dell eliminated the need for inventory and completely cut out any intermediary. Individuals ordered computers that reflected their personal preferences, and Dell subsequently ordered the indicated parts from a supplier, built the computer, and shipped it directly to the consumer. The process also reduced cost, resulting in competitive pricing. Even more genius, Chris Hantz adds, Dell paid its suppliers after a month, allowing the company to earn interest on consumer payments in the meantime.
Chris Hantz also sees Amazon.com, Inc. as a model for future entrepreneurs to study. The company challenged physical bookstores with large warehouses full of extensive inventory that it could ship directly to consumers. Importantly, Amazon.com, Inc. did not become profitable for almost a decade, demonstrating the importance of building a solid infrastructure. Amazon.com, Inc. created a website that centers on the consumer and the consumer experience, establishing a faithful customer base from the very beginning.