According to a survey conducted by Bain & Company, and cited by the World Economic Forum, approximately 33% of executives expect their industry to be disrupted by insurgent circularity start-ups and 50% of executives expect circularity to become the "new normal" for all companies in the next decade.

Building a circular business model is not a trend for 2022 necessarily, but it is of strategic importance in the years to come.

So, how can companies build a circular business model that actually works?

According to the experts from the World Economic Forum, circular business model requires a fundamental shift in how a company operates, including changes to its economic model and switch to new profit pools; new operations and supply chains create new steps in the process (goods recapture is consistently listed as a new step to manage) and there is a high burden of proof for the sustainability and financial benefits related to this shift.

In order to reach a working circular business model, managers need to have answers for questions like “what goods do I need back?”, “where are they?” and “how do I get them?”. This requires companies to understand what products they are going after with the corresponding profit available from these products. After that has been decided, they need to understand how to physically trace a product and the best way to recapture it.

Read more on how to build a circular bussines model that works here.