Biology of Business

Storage Economics

TL;DR

The fundamental insight: Cost of storage < Cost of running out.

By Alex Denne

Accept waste to survive scarcity.

Every organism faces the calculation of when to consume resources immediately versus storing them for later. Storage incurs costs: energy expenditure (burying acorns, synthesizing fat), memory burden (tracking cache locations), theft (10-15% of caches stolen), and spoilage (5-10% loss). For squirrels, total storage loss reaches 35-50% of cached resources. Yet the alternative - no storage - means death when resources disappear seasonally.

Business Application of Storage Economics

Companies face the same storage economics calculation: cash reserves earn 1-2% but provide crisis survival buffer, while immediate deployment might earn 10-15% returns but leaves no cushion for recessions. The fundamental insight: Cost of storage < Cost of running out.

Related Mechanisms for Storage Economics

Related Organisations for Storage Economics

Related Organisms for Storage Economics

Related Frameworks for Storage Economics

Related Research for Storage Economics