"This is the best money I've spent so far trying to attract qualified investors. I've attended several VC and Angel Investor events over the past year to attract investors and this site has attracted the most relevant and qualified investors so far. Thanks! ~ James Fitzgerald - ChainStar USA"
Posted on November 30, 2017 @ 06:01:00 AM by Paul Meagher
I recently decided to scale up the water holding capacity of my farm property by purchasing a used 2000 gallon plastic tank. Here is what the beast looks like:
This was not a carefully planned purchase. There was a good deal on it ($250) and I envisioned a few possible uses for it on the farm so I purchased it before someone else got it. Now that I have purchased it, the concept of scaling up seems much more visceral and real and is the inspiration for my thoughts about scaling up today.
1 US gallon of water (3.785 L) weights approximately 8.34 pounds or 3.78 kilograms at 62 °F (17 °C). 2000 gallons of water would weight 16,680 pounds or 8.34 US tons. When I said this to my wife she said it would take ALOT of water to fill it up. That is true, but we have a big roof on our farm property to potentially collect the water from.
In the left side of the photo you can see a 1000 liter water tote (264 US gallons) that is currently collecting water off a side roof on the barn. That tote can be filled within 4 hours in a heavy rain event. I'd estimate that I could fill the 2000 gallon water tank at least half full (1000 gallons or approx 8000 lbs) in one such rain event by collecting water from one side of the main roof - the right side. When I drop off the tank, I may end up placing the rain collector around there for now. I'll wait til next spring to hook it up.
So one principle of scaling up is that you should have the capacity to scale up before you do so. I could have filled the big tank with runoff from the farm house more slowly but I was mainly thinking of using my barn roof when I purchased this tank. A 2000 gallon tank seems to me to be the size of tank appropriate to collecting rain off a much larger roof surface such as a barn. I can cycle through emptying and filling the tank more quickly with barn roof runoff. The equivalent idea in business might be to make sure you have the person power in place before you start scaling up a line of business. Match scale to capacity.
Another aspect of scaling up is that there are multiple consequences of scaling up, not just one. I am scaling up my water holding capacity, but I am also scaling up my water pressure in ways that I haven't tried to calculate yet. All of the vines and trees I've planted are located down hill from the farm. When I tried to gravity feed irrigation from my 1000 liter water tote I was disappointed with the non-existent pressure I was getting. I eventually had great pressure when I attached a transfer pump to the water tote.
I don't know right now what water pressure I should expect from a discharge valve at the bottom of an overflowing 2000 gallon tank. The normal state for my smaller 1000 liter tank is to be full. When rain events happen on a full tank an overflow pipe positioned at the fill level keeps the tank from filling the tank any higher. There is alot of downward force involved in a full 2000 gallon tank. I'm sure some Texas or Alberta oil field worker could enlighten me quickly. They could probably also enlighten me on the ground preparation work that should be done and perhaps the best way to elevate the structure if I decided I wanted even more pressure.
The point is that when you scale up, you don't just scale up on your desired dimension (more water) you also scale up in other dimensions which may (more pressure) or may not be (more groundwork required) positive outcomes but which will need to be addressed in your planning. The more you can quantify the outcomes across all dimensions the better your scale planning is likely to be.
Another aspect of scaling up is having a use for your scaled up capacity. I must admit that I currently don't make much use of the water I do currently collect so why should I bother collecting even more water? One answer is that it would be better NOT to use a transfer pump as a long term solution to pressurizing my irrigation water. The larger water holding capacity will allow me to pressurize my water more and perhaps allow me to realize my original gravity-based irrigation plans for the vines, fruit trees, nut trees and my home gardens. If that is true, I will be able to take advantage of the increased storage capacity and gravity pressure to help my plants grow better.
Finally, suppose that I start collecting water and find a use for the larger capacity of available irrigation water. That might be a good time to make the decision to scale up further by adding another 2000 gallon tank. In other words, don't prematurely over scale your operation. I would like to have more water holding capacity but there is a sensible limit right now as to how far I should increase my capacity. Likewise, when scaling up a business operation, is there some natural limit to how far you should try to scale up in this iteration of your business?
To conclude, scale planning is important for any business that plans to grow which I have tried to illustrate with the example of scaling up my farm water holding capacity with a bigger water tank. This is a relatively simple example of scaling up but it nevertheless illustrates some of the issues involved.
Connecting California Entrepreneurs and Investors.
Notice: The California Investment Network is owned by
Dealfow Solutions Ltd. The California Investment Network is part
of a network of sites, the Dealflow Investment Network, that provides a platform
for startups and existing businesses to connect with a combined pool of potential
funders. Dealflow Solutions Ltd. is not a registered broker or dealer and
does not offer investment advice or advice on the raising of capital. The
California Investment Network does not provide direct funding or make any
recommendations or suggestions to an investor to invest in a particular company.
Nothing on this website should be construed as an offer to sell, a solicitation of an
offer to buy, or a recommendation for any security by Dealflow Solutons Ltd.
or any third party. Dealflow Solutions Ltd. does not take part in the negotiations
or execution of any transaction or deal.
The California Investment Network does not purchase, sell, negotiate,
execute, take possession or is compensated by securities in any way, or at any time,
nor is it permitted through our platform. We are not an equity crowdfunding platform
or portal. Entrepreneurs and Accredited Investors who wish to use the California Investment Network
are hereby warned that engaging in private fundraising and funding activities can expose you to
a high risk of fraud, monetary loss, and regulatory scrutiny and to proceed with caution
and professional guidance at all times.