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What is a Biogeochemical Cycle?
  1. Glossary/

What is a Biogeochemical Cycle?

7 mins·
Ben Schmidt
Author
I am going to help you build the impossible.

In the natural world, a biogeochemical cycle describes the pathway by which a chemical substance moves through both the biotic and abiotic components of Earth. The term itself is a contraction of the biological, geological, and chemical aspects that drive the movement of elements like carbon, nitrogen, and oxygen. In a biological sense, the biotic portion refers to the biosphere, which includes all living organisms. The abiotic portion includes the lithosphere, atmosphere, and hydrosphere. This cycle ensures that essential elements are not lost but are instead recycled and repurposed to sustain life across different environments.

When you are building a startup, it is helpful to view your organization as a localized version of these cycles. Your business is not a closed loop, but it relies on the constant circulation of resources to survive. Just as nitrogen moves from the air into the soil and then into plants, your capital and information move through different states within your company. If any part of this cycle becomes blocked, the system begins to degrade. Understanding the flow of these substances helps a founder identify where bottlenecks occur and where resources are being wasted rather than recycled.

The distinction between biotic and abiotic assets

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In a startup environment, the biotic components are the people. This includes your founders, your employees, your advisors, and your customers. These are the living elements that consume resources and convert them into energy or growth. The biotic side of your business is characterized by behavior, culture, and decision making. It is the most volatile part of the cycle because living organisms react to their environment in unpredictable ways. Without the biotic component, the resources in your business would remain static and unused.

The abiotic components are the non living structures that support the business. This includes your legal entity, your codebase, your physical equipment, and your cash reserves. In science, the lithosphere represents the solid ground. In a business, your lithosphere is the structural foundation of your company. The atmosphere might represent your company culture or the broader market sentiment that everyone breathes in. The hydrosphere represents your liquidity. Cash is the fluid that allows nutrients to move between the biotic and abiotic parts of the organization.

Successful founders realize that these two sides must interact constantly. You cannot have a healthy biosphere without a stable lithosphere. If your codebase is messy or your legal structure is weak, the people in your company cannot perform their roles effectively. Conversely, a perfect abiotic environment is useless if there are no living entities to drive the cycle forward. The goal is to create a rhythm where resources flow from the structural side of the business into the people, who then use those resources to build more structure.

Comparing cyclic flow to linear consumption

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It is common in the startup world to talk about burn rate. This is often viewed as a linear process. You have a pile of cash, and you set it on fire to achieve speed. However, the concept of a biogeochemical cycle suggests that linear consumption is an unsustainable anomaly. In nature, a linear path leads to the depletion of a resource and the eventual death of the local ecosystem. Most startups that fail do so because they treat their resources as consumables rather than components of a cycle.

When we compare a cyclic flow to a linear flow, we see a shift in how value is measured. Linear thinking focuses on the end of the line, such as a single sale or a specific milestone. Cyclic thinking focuses on the regeneration of that resource. For example, instead of just spending money to acquire a customer, a cyclic approach asks how that customer contributes back to the lithosphere or atmosphere of the company. Do they provide data that improves the product? Do they provide referrals that reduce future acquisition costs? This is the difference between a one time chemical reaction and a sustained biogeochemical cycle.

Linear systems are fragile because they require a constant external input of energy. If the external funding stops, the system collapses. A cyclic system is more resilient because it finds ways to repurpose its outputs as inputs for the next stage of growth. This does not mean a startup should be a closed system, but it should aim to maximize the internal recycling of value to ensure that every unit of energy spent contributes to the long term stability of the organization.

Scenarios where cycle speed matters most

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There are specific moments in a startup life cycle where the speed of these internal cycles becomes the primary factor in survival. During the product market fit phase, the data cycle is the most critical biogeochemical equivalent. You are moving information from the market into your biotic team, who then transform it into abiotic code. If this cycle is slow, you will run out of resources before you find a viable path. The faster the movement between the living and non living parts of the company, the quicker the organization can adapt to the environment.

Another scenario involves scaling. When a company grows quickly, it often experiences a breakdown in its internal atmosphere. The culture that worked for five people may not sustain fifty. In this case, the founder must look at the cycle of human capital. How are new people integrated into the biosphere? How do they draw from the existing lithosphere of company knowledge? If the cycle of knowledge transfer is broken, the organization becomes top heavy and the abiotic structures can no longer support the living population. This leads to what ecologists call a population crash.

In times of economic downturn, the focus shifts to the hydrosphere. The movement of cash becomes the priority. Founders must ensure that the liquid assets are being channeled toward the most essential biotic functions. This might mean cutting back on certain abiotic expansions to ensure the living core of the company can continue to breathe. Managing the cycle during a drought requires a deep understanding of which components are vital and which can be dormant until conditions improve.

Unanswered questions in organizational biology

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While we can use these scientific parallels to better understand our businesses, there are many things we still do not know about the limits of these cycles. For instance, is there a maximum speed at which a company can cycle its resources before the system becomes unstable? In nature, rapid cycling can sometimes lead to exhaustion of the substrate. In business, we see this as burnout or technical debt. We do not yet have a precise way to measure the optimal frequency for these cycles in a startup environment.

Another unknown is how much external input is necessary to keep a cycle healthy. Every biogeochemical cycle on Earth eventually relies on energy from the sun. What is the startup equivalent of the sun? Some might say it is the market demand, while others argue it is the vision of the founder. If the external energy source fluctuates, how can the internal cycle compensate? These are questions that every founder must grapple with as they build. By thinking of your business as an ecosystem defined by cycles rather than a machine defined by parts, you can better navigate the complexities of long term growth.

We must also ask ourselves how the death of certain components feeds the rest of the system. In nature, decomposition is a vital part of the cycle. In a startup, when a project fails or a team is disbanded, how is that energy recycled? Often, we tend to view failure as a total loss rather than a source of nutrients for the next iteration. Learning how to decompose failed ideas effectively might be the most overlooked skill in the founder toolkit. It ensures that even when something dies, the substances it contained remain within the cycle to feed the next stage of the journey.