Circular Business Models: Companies Doing It Right

  Circular economy is not only an environmental idea. Repair, resale, rental, refill and product-as-a-service models can change how businesses make money and how long products remain useful. You will investigate a real circular company and design a business model that creates customer value without depending only on selling more newly made products. By the […]

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Circular Business Models: Companies Doing It Right

Your Mission
Investigate how circular companies make money from keeping products useful for longer — then design a model of your own.
You will compare circular revenue models, analyse customer incentives, investigate a real company and design a circular loop that works commercially.
The Shape of This Challenge
Discover
✏️ ️ Notice & question
Explore
️ Investigate & test
Create
✏️ Make & communicate
Reflect
️ Think & apply

Discover

Start with the business model, not the sustainability slogan.
Step 1

Circularity Changes How a Business Makes Money

️ Model sort · 8–10 mins
We are learning to identify different circular business models rather than treating circularity as a recycling policy.

Repair, resale, rental, refill, sharing, remanufacturing and product-as-a-service can all change the relationship between a company and a product.

Your Task
  1. Sort examples into repair, resale, rental/sharing, refill/reuse, remanufacture and product-as-a-service.
  2. For each model, write who pays and what they are paying for.
  3. Choose the model that most clearly rewards longer product life.
I can explain how circular business models can create revenue while keeping products/materials in use.
→ This gives you the business-model vocabulary for real case studies.
EntrepreneurshipCritical ThinkingBusiness Literacy
Step 2

Where Is the Customer Value?

✏️ Value proposition · 8–10 mins
We are learning to connect environmental value with reasons customers may actually choose a circular offer.

A circular model becomes stronger when it is cheaper, more convenient, trusted, flexible or higher quality — not only greener.

Your Task
  1. Choose three circular models.
  2. For each, write one customer benefit and one customer barrier.
  3. Add one business benefit such as recurring revenue, loyalty, lower material cost or new market access.
  4. Choose the model with the strongest combined customer and business case.
I can identify customer and business incentives behind circular models.
→ This prevents your final strategy from relying on environmental goodwill alone.
EntrepreneurshipCommunicationCritical Thinking

Explore

Use a real company to understand operational reality and then redesign the customer incentive.
Step 3

Investigate a Company Doing It for Real

Choose your route · 12–18 mins
We are learning to analyse a real circular business model using evidence beyond marketing claims.

Look at how the model works operationally: customer behaviour, product return, repair/refurbishment, pricing and logistics.

Your Task
  1. Choose one company or service.
  2. Complete one research route.
  3. Map customer → product/service → return/reuse loop → revenue.
  4. Identify one operational challenge or limitation.
⚡ Quick Track

Use the company’s own explanation plus one independent source. Identify customer value, revenue model, circular loop and one limitation.

Dig Deeper

Compare two companies using different circular models. Evaluate which model keeps more value in the product and which appears easier to scale.

I can explain how a real circular company creates environmental and economic value.
→ This provides the evidence base for your own strategy.
ResearchEntrepreneurshipSystems Thinking
Step 4

Design the Incentive to Return, Repair or Reuse

️ Business design · 10–12 mins
We are learning to design customer and operational incentives that make circular behaviour easier.

A model fails if returning, repairing or reusing is harder than buying new.

Your Task
  1. Choose a product category.
  2. Identify the biggest customer barrier to circular use.
  3. Generate at least four incentives or service-design changes.
  4. Choose one and explain the operational cost or trade-off for the business.
I can design a circular business feature that works for customer behaviour and business operations.
→ This creates the core innovation in your final model.
EntrepreneurshipProblem SolvingCreativity

Create & Share

Create a circular venture model with business and environmental logic.
Step 5

Create a Circular Business Model

✏️ Model · Create · 25–35 mins
We are learning to design a business model that makes longer product life economically useful.

Your model should explain who the customer is, what value they receive, how the circular loop works and how the business earns or saves money.

Your Task
  1. Choose a product/service category.
  2. Define the customer problem and circular value proposition.
  3. Show the return, repair, refill, resale or service loop.
  4. Explain the revenue/cost logic and one operational risk.
  5. Choose one output below.
Circular Business Model Canvas
1 page · structured model + 180–220 words
⏱ 25–30 mins

Show customer, value proposition, circular loop, revenue/cost logic and risk.

Circular Venture Pitch
4 slides · maximum 30 words per slide
⏱ 30–35 mins

Pitch customer problem, circular model, business value and operational challenge.

Make Money Without Making More Stuff?
90 seconds final runtime
⏱ 30–35 mins

Explain how one circular model could create value while extending product life.

I can create a coherent circular business model with customer, operational and environmental logic.
→ This is your finished mission output.
EntrepreneurshipProblem SolvingCommunication
Step 6

Reflect, Apply, Look Forward

️ Think or discuss · 5–8 mins
We are learning to reflect on what makes circularity commercially sustainable.

The final challenge asks you to act as a consultant and combine systems, evidence and business thinking into a transformation proposal.

Your Task
  1. Answer the prompts.
  2. Name one circular model that changed how you think about growth.
  3. Write one organisation or community system you could now audit as a consultant.
Reflect

Which customer barrier matters most for circular business models?

Apply

Where could a subscription, repair or resale model work in a sector you know?

Look Forward

How might digital platforms or AI make circular services easier to operate?

I can explain how business incentives can support circular environmental outcomes.
→ You are ready to build the series capstone consultancy proposal.
ReflectionEntrepreneurshipSystems Thinking
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TOOLKIT

Choose Your Tools

Use the tools available to you. Strong systems thinking and evidence matter more than the software.

Research

Use real companies offering repair, resale, rental, refill, remanufacturing, sharing or product-as-a-service models.

Analyse

Look at customer value, revenue model, operational requirements and environmental benefit rather than relying on sustainability marketing alone.

Create

Use a circular business model canvas, strategy brief or pitch.

Educator / Parent Notes

Age, Stage and Prior Learning: Designed for S4–S6 and adults. This challenge should make the entrepreneurial side of circular economy explicit.
Before You Start: Provide a few varied examples if learners are unfamiliar with circular companies. Encourage independent evidence rather than relying only on company sustainability claims.
How to Open This: Ask: “Could a company make more money by helping customers buy fewer new products?”
Scheduling: Steps 1–4 need around 40–50 minutes. Step 5 needs 25–35 minutes.
If a Pupil Gets Stuck: Provide one familiar example such as resale or repair and a simplified Customer / Circular Loop / Revenue / Barrier canvas.
For Fast Finishers: Ask learners to compare two revenue models or estimate what return rate/product life would be needed for the model to work.
Marking Guidance: Look for a clear customer problem, credible circular loop, real company evidence, operational awareness and a business case that does not depend on sustainability messaging alone.

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