Circular business models - Avoid the common mistakes
Most companies are still locked into linear “take, make, sell” models. Yet the message is clear: Circularity isn’t optional - it’s the next competitive advantage. In this article, Daniel Hall unpacks some of the common mistakes that stall circular business model progress and shows how to avoid them. Drawing on real-world experience, these practical strategies help to de-risk the journey and build momentum for the circular economy.
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
1. Treating Circularity as a Sustainability Add-On
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
2. Waiting for the Perfect, End-to-End Solution
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
3. Underestimating Consumer Education Requirements
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
4. Ignoring Ecosystem Dependencies
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
The Window for Action is Narrowing
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
Learning from Success and Failure
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
So where does that leave you?
Most businesses are inherently linear with only 7% of the global economy coming from circular business models. Businesses are geared to take, make, sell with the end-of-life consequence sitting beyond the business' operating horizon. And they are good at it, very good at it. Often having spent decades optimising each process along the way, scrutinising every opportunity for increased value creation or higher profit delivery.
So changing that fundamental linear model can feel inherently risky, moving from the world of the familiar to having to navigate new and uncertain challenges – indeed this fear factor is a frequent blocker to many businesses making meaningful progress toward more circular solutions.
Based on our experience working with businesses across various industries, there are several common mistakes that can derail circularity initiatives before they gain momentum. By being forewarned about these pitfalls, you can de-risk your circularity journey, hopefully making that first step less daunting.
> RELATED ARTICLE: Taking the first (and likely hardest) step towards circularity
