Circular Economy For Dummies

Chapter 6

Rethinking the Conventional Business Model

IN THIS CHAPTER

Seeing the flaws in the traditional approaches businesses have followed in dealing with waste

Discovering the many opportunities that come from reexamining old approaches

Looking within your business operations for entry points to start a circular approach

Okay, time for a basic business lesson. A business model describes how a company creates value for, and delivers value to, its customers. A good business model is one that generates profits for the company (of course) but also provides a product or service that’s beneficial to the customer. Happy customers tell their friends about your company and that leads to more sales and more profits. That’s how it’s supposed to work.

The features of any business model define the value proposition to the customer, the pricing of the products and services, and the organization of the company; and it lists its partners and supply chain. This is essentially how every business works and makes money.

The value proposition describes how the goods or services a company provides are desirable or needed by its customers. Ideally, this value proposition is stated in a way that shows ...