Sustainable Future

Unique, Unusual Business Models Will Change the World

All entrepreneurs, leaders, and designers should know about circular and regenerative business models to create a sustainable future

The world needs changing. Now more than ever, it becomes visible. Now that the big industries have slowed down production, we breathe clean air. We see clear water. Nature is enjoying the pause.

The world has changed beyond recognition in just one month’s time. So who wants to go back to before? Can we build a world that’s far more beautiful than we ever imagined possible in the past century of industrial pollution?

We also realize that we’ve created a card house economy that’s collapsing right before our eyes. And people are suffering because of it.

So what do we really need?

We need resilient businesses as part of a resilient economy.

In order to create this new economy, we need to align it with ecology and the human spirit. We need to create jobs in this new economy. We need to build businesses that are not dependent on just one income stream.

And the good news is, it can be done! It’s already happening all over the world. We just need more of it. More, more, and more. And we need entrepreneurs and leaders to make it happen.

In this story, I want to give you some perspective on our economy. And on our production and business models. How can entrepreneurs be the change they want to see in the world?

In the 25+ years that I’ve been working in business management, I never knew what I’m going to tell you now.

So I hope by telling you early on, you’ll do better than me. Be wiser. Choose the business models that will create abundance for all. And have so much fun in the process!

Linear Business Models

So, please put your entrepreneurial glasses on and follow me down the road of production and business models.

The linear production model is the one that’s ‘normal’ now. In short: we take raw materials, produce products, consume products and when the lifespan is over, we throw them away.

Here’s an illustration.

As you can see, we create waste all over the place. Waste is created during production. We go on creating waste during consumption. And in the end, it’s all waste.

Well, many people realize now we cannot go on like this. Something needs to change.

Companies with linear production models reap rewards in the form of profits. But they are throwing all the resulting problems over the wall of society. Waste, pollution, resource scarcity, loss of biodiversity, etc are currently not the responsibility of a company. We need to change that.

It’s time businesses take their responsibility and solve their own sh*t.

However, the big system isn’t changing yet.

• Labor is still taxed far more heavily than raw materials
• Waste is being shipped around the world to places that need the money but don’t have the capacity to process it properly
• Money is still God and favored over the wellbeing of people and the planet
• The economy is still based on unlimited growth

We need daring leadership from our governments to change all that! But in the meantime, we can already build the new economy under the radar. Within the current system. I’m not saying it’s easy. It would be easier when the systems change was already a fact. But it can be done!

And the more people become aware and start building with us, the easier it gets to flip the whole system around in the near future.

So, what’s the alternative? Is it possible to create an economy and production models that are aligned with nature’s ecology? Can we perhaps create an economy with qualitative growth? The answer is YES.

So what can entrepreneurs do? A lot.

We can embrace:

• Circular business models
• Regenerative business models
• Innovation, innovation, and innovation

Circular Economy

Circular production models are the first step towards a different way of approaching the economy. Let me explain the mechanisms of a circular economy.

In ecology, waste is always a resource for something else. Everything is being reused. The circular production models imitate nature’s way and make sure that all waste is being reduced, reused, and recycled.

The butterfly model of the Ellen MacArthur Foundation explains it clearly.

The Biological Cycle

In the left butterfly wing, you see the biological cycle. Everything in this wing is biodegradable. Waste can be food for the soil, for the rivers (freshwater) and the oceans (saltwater).

Especially farmer entrepreneurs can benefit immensely from this way of thinking. Normally they are buying input (freshwater, energy, seeds, feed, etc.) for the farm and producing output (food and waste).

With circular models, they can use their output as input and save lots of costs along the way.

Examples of products in this wing are:

• Organic food
• Compost
• Energy out of biomass
• Added value products such as lipsticks from tomato cuttings, biodegradable dyes from plants, herbal medicines, etc.

The Technological Cycle

The right butterfly wing has non-biodegradable products as a subject. Products made of metal, or plastics, or bricks.

At the outside of the wing, we see the word recycle. That’s something we know! We can collect waste, separate it, and reuse the materials to produce new products. Examples are paper, glass, plastics, etc.

However, there are several problems with recycling.

• Many materials cannot be used forever. Paper e.g. can only be recycled 5–7 times. After that, the fibers aren’t long enough anymore
• Plastic is mostly down-cycled. There are many types of plastics with different material properties. So the mix of waste cannot be used to make beautiful new products
• Waste is often shipped around the world to find a new destination and that’s a cause for pollution in itself

In this article by Earth911, you can see how many times non-biodegradable materials can be recycled.

When you go deeper into the center of the right butterfly wing, more and more of the added value of an original product is being preserved.

A product can be refurbished or remanufactured. An example of this is an engine or machine. When broken down, it’s often just one part that’s the problem. When this part has been remanufactured, the product as a whole can be better than new.

I know second-hand products have a PR problem. We always think that these products are worse than the new ones. Wrong! Especially with technological products, the remanufactured examples will be better than new.

Think about it. The product has broken down. The engineer analyses the problem and knows the weaknesses of the product better than before. She will remanufacture the product with extra knowledge, test it when ready and it will be a better product altogether.

A product can also be reused or redistributed. In this way, the complete added value of the product will be preserved.

And of course, in the center of the right butterfly wing, we will maintain and repair products. Good maintenance will prevent a lot of problems during the use of the product and prevent waste.

Everything starts with well-designed, well-thought-out products.

A few things to consider:

• If a product will be reused in part it’s important that we know what it’s made of. We need material-passports of all products
• Products should be made durable if we want to reuse them as long as possible. We should not engineer them for just 5 or 10 years, just because the business model needs to sell replacements. Alternative business models will be needed
• Products should be designed modularly. It should be possible to take them apart for reparation or replacement of a part
• We should be clear about the lifespan of a product

A building e.g. doesn’t need to be standing for 100–200 years. Requirements change anyway and it will become harder and harder to adapt a building to the needs of modern times.

Let’s build for 30–40 years (one generation) and make sure the materials can be reused after this time. Or can be composted, used as food for the soil. Nature will take back what’s due anyway. Sooner or later…

Circular Business Models

Okay, a few remarks on circular business models before we go on to the real world-changing stuff. This is peanuts compared to what comes next.

Due to the fact that circular production needs to be durable and reusable, it’s important that you arrange the return of your end-of-life products well. Return distribution is key.

The easiest way to do that is to stay the owner of your product. Your customer will not own the product, just use it. And return it when they want a new one.

There are many examples around these days of entrepreneurs that offer such services:

• Car sharing companies. You don’t own the car, you just pay per use
• Lamp manufacturers are offering light (a certain amount of lux) instead of lamps. You pay for the service of light
• MUD Jeans offers lease jeans. You pay a monthly fee. If your old pair is worn out or if you want to change your style, you just return the jeans and they recycle your old one

In these business models, you have to calculate your costs as a subscription fee or lease fee. But there are big advantages to be had:

• It creates very loyal customers (they feel connected to your brand)
• These ambassadors are your free salespeople, spreading the word
• There are huge opportunities to be created from storytelling

Here is some more information about ways to create funding with storytelling.

Regenerative Business Models

Enough about the circular economy. I know it’s a good step forward, but it’s not for me. I want better! I want real change! I want a world without waste.

So what’s the problem with the circular economy, you ask?

• Returning all products will be an illusion. And it will give many transport movements that are again polluting
• Many products need heavy mining. E.g. our mobile phones and windmills need lithium. My goodness, how polluting and human-degrading is that process!
• At the bottom of the butterfly model, you see the words “minimize systemic leakage and negative externalities”. That’s the problem. Minimize is not prevent completely. Minimize is still extremely large scale if we keep on consuming the vast amounts of sh*tty stuff that we use now

So, can we create regenerative business models that are really world-changing?

YES! Yes! Yes! We can!

And many entrepreneurs are already doing it.

They are building with seaweed.

They are making drinking straws from organic straws (farmer’s rest streams).

They are making biodegradable diapers and healthy soil.

They are producing notebooks from stone paper.

They are growing mushrooms on coffee waste.

And many, many, many more products are seeing the light of day.

Here are some examples in the flesh.

The Secret of Regeneration

So, what’s our secret? How do we make our regenerative businesses successful? What do entrepreneurs need to jump on this bandwagon?

• We operate in the left butterfly wing. All products are biodegradable, it’s just a matter of time
• We use local, abundantly available materials. Examples are seaweed, bamboo, industrial hemp, nettle, thistles, bacteria, algae, etc.

I wrote this story to give you inspiration. Designers, we need you!

• We do not need a big scale to make their business model work. We use the synergy between different products. The waste of one product will be used as a resource for the next product. Sometimes between our own products, sometimes in collaboration with other entrepreneurs. It saves the expense on resource and on waste handling both
• We use stranded assets to get the necessary investments, funding. Stranded assets can be empty buildings, but it can also be illness or pollution. Where there’s pain there’s money to solve a problem. Identify who has the pain and make sure they invest in our company solving that problem
• We use the non-material advantages of our products as part of our business model. Storytelling can be part of our business model, generating an income stream from e.g. Corporate Social Responsibility (CSR)-driven companies. Community building can generate another income stream our customers pay for.
• We use both sides of the incoming and outgoing money streams. The incoming part by using rest streams or unwanted crops as a material. The outgoing part by creating up-cycling opportunities with our waste streams

And if you want to find more examples, you can find them within the Blue Economy network worldwide.

The result is tangible

• Resilient businesses that aren’t dependent on one income stream
• A business ecosystem of interacting companies that thrive together
• An economy in which the cash is locally as active as can be
• Optimum interaction between human activity and the environment
• The abundance of nature will be unleashed, providing human products and natural benefits for the common good. Such as clean air, clean water, healthy soil, etc.

Dear entrepreneur-friends, if you ever want to be changing the world with your business, this is the time you’ve been waiting for.

It’s fun.

We support each other. We learn while doing. Jump on the bandwagon with us and create your own regenerative business model. Or transform your existing business into something you’ve always dreamt about.

There is no time to waste… Let’s be the change together…

And if you want to connect, you can always find me on LinkedIn or Facebook or somewhere in the world working on my motto:

“Let’s restore ecosystems and learn as human beings how to live within planetary boundaries”

Further reading

About the author

About business models and ecosystem services/functions