What Is a Circular Business?
If you don’t know the answer you should. More than ever consumers that are driven by GEN Z want - no - demand you become part of the circular economy. Are you part of that economy and if you are - are you revealing it in your story to your consumers?
A circular business is also known as a circular economy business. This is an approach to conducting business that aims to minimize endless waste, maximize resource efficiency, and promote sustainability for the planet.
The circular economy is always seeking to move away from the traditional and unsustainable linear "take-make-dispose" model of production and consumption.
In a nutshell - that’s it.
A circular business focuses on keeping materials, products, and resources in use for as long as possible through strategies such as:
Designing for durability and longevity: Circular businesses prioritize the design of products that are built to last, using high-quality materials and manufacturing processes that promote durability. This extends the lifespan of products, reducing the need for frequent replacements.
Reusing and refurbishing: Instead of discarding products at the end of their use, as a circular business, you would aim to reuse or refurbish them. This also involves repairing, upgrading, or remanufacturing products to extend their lifespan and keep them in circulation.
Recycling and material recovery: Circular businesses emphasize recycling and material recovery to extract value from products and materials that have reached the end of their useful life. By turning waste into new raw materials, they reduce the need for extracting and processing virgin resources.
Resource optimization and efficiency: Circular businesses strive to optimize resource use throughout their operations. This includes minimizing waste generation, optimizing energy and water consumption, and finding innovative ways to utilise by-products and waste streams.
Product-as-a-Service (PaaS) models: Some circular businesses explore alternative business models where products are offered as services rather than being sold outright. For example, instead of purchasing a product, customers may pay for the service it provides, such as leasing (like a car), renting, or subscribing. This encourages product longevity and incentivizes manufacturers to design products that are durable and easily maintainable.
By adopting a circular business model, your company can achieve several benefits, including:
Reduced environmental impact: Circular businesses minimize resource extraction, waste generation, and greenhouse gas emissions. This contributes to environmental sustainability and helps mitigate climate change.
Cost savings: Optimizing resource use, extending product lifespans, and implementing efficient processes can lead to cost savings for businesses. For example, reusing materials can reduce raw material costs, while product longevity can lead to increased customer loyalty and repeat business.
Enhanced brand reputation: Consumers and stakeholders increasingly value businesses that prioritize sustainability and responsible resource management. Embracing circular practices can improve a company's brand reputation, attract environmentally conscious customers, and create a competitive advantage.
New business opportunities: The circular economy presents opportunities for innovation and the development of new products, services, and business models. By embracing circular principles, companies can tap into emerging markets and capitalize on the growing demand for sustainable solutions.
If you want to become (and you should) a circular business it is critical you adopt strategies that minimise your waste, maximize your resource efficiency, and promote real sustainability.
By shifting towards a circular economy model, your business can reduce their environmental impact, achieve cost savings, enhance your brand reputation, and uncover new business opportunities.
If this is something you are doing you must share this in your storytelling. The public demand to know.
Alan Forrest Smith