Circular economy: fad or model?

The economy of tomorrow will be circular. All companies are aware of this. The circular economy allows us to combat waste, reuse raw materials and support the energy transition. For startups, the circular economy is a source of new business models. Discover the steps that will put you on the right track.

What is the circular economy and what does it mean for you? 

An economy that’s more respectful of resources

Historically, the global economy has been based on a linear model: extract, produce, consume, and throw away. But our planet’s natural resources are not infinite. As traditional raw materials become increasingly scarce, the time for change has come. For entrepreneurs who are starting out, the circular economy is an opportunity, as it shows little dependence on natural resources. This means that you can choose a method of production that’s based on recycling, or integrate this new circular model into the design of your products. For example, in the circular economy, components are designed to have multiple lives. The economic loop is thus closed. It’s essential to think about this before launching your project:

• How do you integrate the circular economy into your business model?
• What costs arise from it?
• What benefits or savings do you get from it?
• What does the circular economy mean for your employees and suppliers?

We can help you explore these matters and find the right answers to all these questions.

Make an appointment to get personalised advice

A new economic model? 

Ready for the economic transition

It’s now clear that consumers are ready for the transition. When you adopt the principles of circularity, you can rely on environmentally conscious consumers who want to preserve the environment. Implementing circular practices has costs, just like their linear equivalents. 

Whether you’re setting up your business or it’s already in full expansion mode, the circular economy model suits all business types. Some consider circularity as the cornerstone of their strategy, while others are gradually adjusting their production methods and processes. According to the United Nations, the global population will be close to 9.7 billion by 2050. The increased pressure on natural resources will only increase the environmental and financial benefits of circularity. So entrepreneurs who are starting out have every interest in reusing and recycling materials!

There are plenty of examples. Food industry giants generate profits from high-quality, recyclable and reusable packaging. New methods under development allow economically valuable fertilizers to be produced from wastewater. A British textile company first found success by reusing old clothes to produce new t-shirts. Today, it makes its methods available to companies that want to take the circular economy path. You can draw inspiration from these companies when launching your own.

The six advantages of the circular economy 

A new business model

The economy of tomorrow will be circular. All companies are aware of this. The circular economy allows us to combat waste, reuse raw materials and support the energy transition. For startups, the circular economy is a source of new business models. Discover the steps that will put you on the right track.

What is the circular economy and what does it mean for you? 

An economy that’s more respectful of resources

Historically, the global economy has been based on a linear model: extract, produce, consume, and throw away. But our planet’s natural resources are not infinite. As traditional raw materials become increasingly scarce, the time for change has come. For entrepreneurs who are starting out, the circular economy is an opportunity, as it shows little dependence on natural resources. This means that you can choose a method of production that’s based on recycling, or integrate this new circular model into the design of your products. For example, in the circular economy, components are designed to have multiple lives. The economic loop is thus closed. It’s essential to think about this before launching your project:

• How do you integrate the circular economy into your business model?
• What costs arise from it?
• What benefits or savings do you get from it?
• What does the circular economy mean for your employees and suppliers?

We can help you explore these matters and find the right answers to all these questions.
Make an appointment to get personalised advice

A new economic model? 

Ready for the economy’s transition

It’s now clear that consumers are ready for the transition. When you adopt the principles of circularity, you can rely on environmentally conscious consumers who want to preserve the environment. Implementing circular practices has costs, just like their linear equivalents.

Whether you’re setting up your business or it’s already in full expansion mode, the circular economy model suits all business types. Some consider circularity as the cornerstone of their strategy, while others are gradually adjusting their production methods and processes. According to the United Nations, the global population will be close to 9.7 billion by 2050. The increased pressure on natural resources will only increase the environmental and financial benefits of circularity. So entrepreneurs who are starting out have every interest in reusing and recycling materials!

There are plenty of examples. Food industry giants generate profits from high-quality, recyclable and reusable packaging. New methods under development allow economically valuable fertilizers to be produced from wastewater. A British textile company first found success by reusing old clothes to produce new t-shirts. Today, it makes its methods available to companies that want to take the circular economy path. You can draw inspiration from these companies when launching your own.

The six advantages of the circular economy 

A new business model

Naturally, you want to know how a circular model can help your business make progress and how a circular model outperforms a linear model. Here are six examples.

1. More attractive products

Waste is considered an asset, not something to be thrown away. Better still, it becomes part of the production process. Waste becomes a raw material with real value. Customers are increasingly accepting of waste, and are finding environmentally friendly products more attractive.

2. Close relationship with the customer

In a circular environment, products have a much longer life cycle. So it’s possible to offer products as a service and have customers pay to use them rather than own them. Maintenance, durability and upgrades are all part of this economic model.

3. Reduced costs 

The ongoing process of reusing, repairing, dismantling and recycling leads to a decrease in raw material and component costs. So production is less expensive.

4. Recurring revenue 

Circular models are based on selling services and on the sharing economy. Products generate profits each time a new service is provided, over and over again.

5. Greater resilience 

If a circular product is no longer usable, all its components, materials and resources are recovered. Products are also designed with their end-of-life in mind. This allows a company to cope with supply chain instability, product shortages and price fluctuations.

6. Shorter production times 

Manufacturing a reconditioned product takes much less time than making a new product. And for the manufacturer, it also costs much less.