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5 Reasons You Need to Adopt a Circular Economy Business Model

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What goes around comes around, the saying goes, and everything that was once old will soon be new again. Life moves in cycles, and everything has its season.

The cyclical nature of existence is reflected in the concept of the circular economy, which outlines ways to develop our businesses by using resources in a sustainable way. As entrepreneurs, we all have an eye on the long game. So a circular economy business model makes sense, both for our brands and for our customers and clients.

Let me tell you why.

Related: 7 Steps for Establishing the Right Business Model

All good business ventures have the goal of becoming self-sustaining. When I launch a new company, I trust that the time and money invested at the beginning will bring me a return on my investment. It takes time, but I work towards the goal of each business making enough to pay for its own expenses, as well as paying down the cost of startup and rewarding any other investors.

To me, that’s an echo of the circular economy. The concept of the circular economy is centered on increasing asset longevity and gradually reducing waste. Both in and out of the business world, a circular economy is “restorative and regenerative by design”. It’s about using every aspect of what you’ve got to get you to the next step in your plan.

In theory, a circular economy business model should cut expenses, increase the longevity of tools and products, reduce waste, and maximize assets. It sounds great, right? The challenge lies in implementing the model effectively.

The details vary, but before you say that it’s too good to be true — or unrealistically difficult to implement — there are five excellent reasons to bring this business model into your own venture.

Related: It’s Official, Customers Prefer Sustainable Companies

One of the main benefits of this business model, as identified by Accenture, is the extension of the value and........

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