A circular economy contributes to a sustainable society. This is important at a time when raw materials are becoming increasingly scarce. Circular business models reduce the risk of scarcity through innovative use and reusable energy, products, parts and raw materials. This offers business opportunities. Think new markets, new partnerships and sustainable competitive advantage. Our funding solutions can help, let us open up space for you to succeed.
What is a circular business model?
When you think of a circular business model, you probably think about recycling. This is a good example, but many more possibilities exist. We've listed five circular business models that can help you to make your business more sustainable.
Many products and services are rarely used. Cars are left parked and unused, tablets remain in storage and real estate is often left empty for months.. The percentage of ownership or use is extremely low. By acting as a shared platform, your customers can make use of these products. This means, your company can maximize product usage and so improve productivity and value.
Product as a service
A growing numbers of companies offer products services for example electric vehicles. In major European cities, electric cars are often leased, rather than sold, for a fixed price per month. Or they pay per ride. Are you able to manage the maintenance of products? If so you can use this model to recover the residual value at the end of its life.
Does your company experience problems when raw materials can no longer be supplied due to scarcity? A circular supplies business model can offer a solution. Raw materials are replaced by fully renewable, recyclable or biodegradable raw materials. Plant pots that are made from waste wood for example.
Product life extension
Extending the lifespan of products is often easier than you think. For example, material that would otherwise be wasted can, in many cases, be maintained or even improved. Take telephones, which will work like new due to changes in the software and hardware. By continuing to extend the life of products, you can generate new revenue and keep material out of landfill.
Waste materials can be reprocessed into new raw materials. For example if you are flushing purified waste water away consider storing it and making it available as irrigation water for farmers instead, that way you can maximise its economic value.
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