In today’s world, the traditional linear economy of “take, make, dispose” is no longer sustainable. With the planet facing critical challenges such as resource depletion, climate change, and waste pollution, circular thinking isn’t just a nice-to-have—it’s a necessity. To help businesses to embrace circularity we developed the Circular Canvas.

Download the Circular Canvas template: Powerpoint (easy to fill in template), pdf.

What is the Circular Canvas?

The Circular Canvas (Also known as the Circular Business Model Canvas) is an innovative tool designed to help businesses and individuals transition towards a circular economy. It’s based on the popular Business Model Canvas and provides a comprehensive framework that guides organizations in rethinking their products and processes to align with circular principles. It encourages creativity and collaboration by focusing on key areas such as resource efficiency, product life extension, and closed-loop systems. This tool helps identify opportunities for innovation, reduces environmental impact, and enhances long-term economic value.

Unlike the traditional linear model, where resources are extracted, used, and then discarded, the circular economy emphasizes sustainability by designing out waste, keeping products and materials in use, and regenerating natural systems.

Advantages

• It maps your company in a clear way
• It helps to create circular business model options
• Multifunctional tool that is quick to set up and adjust
• It is very visual and therefore easy to communicate with third parties
• Helps to analyze your business from a distance, also on sustainable perspective

What are the building blocks of the Circular Canvas?

The Circular Canvas is based on the popular Business Model Canvas and also uses 9 building blocks. The difference is that the questions in the building blocks have been adapted to look at a business model from a sustainable and circular perspective. Step-by-step we will go through the canvas using an example from Patagonia. If you would like more information about the Patagonia business model, read our next Deep Dive.

1. Customer segments | Circular Business Model Canvas

Targeting customer groups that value circular solutions, such as communities focused on sustainability and shared ownership models.

Questions:

• Who are your customers?
• Are there new customer segments you can target with your circular offerings?

2. Value Propositions | Circular Business Model Canvas

Delivering value through extended product lifecycles, reduced waste, and sustainable materials.

Questions:

• What kind of services do you deliver?
• How can you maximize value creation by implementing circular strategies?
  • Can you maximize the lifespan of your products?
  • What services can you offer to maintain and repair our products?
  • Can you convert ”trash to cash” from others or yourself?
  • Can you close-the-loop and compensate your footprint?
  • How do you contribute to a better world?

3. Customer relationships | Circular Business Model Canvas

Building long-term partnerships with customers by involving them in circular initiatives and recycling programs.

Questions:

• What kind of relationship do you have with the customer?
• Is the relationship short- or long-term?
• How can you build lasting relationships with customers by engaging them in circular initiatives?

4. Channels | Circular Business Model Canvas

Using sustainable channels that support product lifecycle extension, including services like rental and leasing models.

Questions:

• Through which channels are you in contact with customers?
• Which channels can you use to distribute our circular products and services sustainably?
• How can you ensure that your distribution channels support circular principles?

5. Revenue streams | Circular Business Model Canvas

A company without a good revenue model is doomed to fail! The cash register has to ring, because a dripping money tap is not enough to survive.

• What are the revenue models?
• How much does each revenue stream contribute to the total?
• What is the positive environmental, social, and economic impact from your companies activities to the planet?

6. Core activities | Circular Business Model Canvas

Engaging in activities such as design for durability, remanufacturing, recycling, and creating closed-loop systems.

Questions:

• What core activities do you perform to deliver the circular value proposition?

7. Key resources | Circular Business Model Canvas

Utilizing renewable and sustainable resources, including recycled materials and renewable energy sources, to support circular operations.

Questions:

• What are the key resources required to realize the circular value proposition?
• What physical, intellectual, human and financial resources are required?
• How can you source materials that reduce our environmental impact

8. Key partners | Circular Canvas

Collaborating with suppliers, recyclers, and other stakeholders to support circular economy principles and achieve business goals.

Questions:

• Who are your key partners in achieving circularity, and how can they contribute to our goals?
• Which key resources are obtained from partners?
• How can you work with partners to create closed-loop systems?
• Can you stimulate partners to work conform the circular principles or can you exchange them?

9. Cost structure | Circular Canvas

Generating income through circular business models, such as product-as-a-service, leasing, and take-back schemes, that prioritize sustainable practices.

Questions:

• How does the cost structure look like?
• What are the main cost items?
• What is the negative impact on the planet from your business activities?
• How can your company reduce its footprint?

For who is the Circular Canvas?

Whether you’re a business leader, designer, student or entrepreneur, the Circular Canvas empowers you to envision and implement sustainable solutions that drive positive change. The Circular Business Model Canvas is easy to apply and free to use for anyone who wants to get started with circular business operations.

When to use the Circular Canvas?

This explanation of the Circular Canvas would be incomplete without addressing its various use cases. The Circular Canvas is an incredibly versatile tool that can be applied in a multitude of scenarios. You can use the canvas for:

• Ideation & business idea validation
• Strategic planning
• Stakeholder communication
• Competitor analysis

And more…

Tips when applying the Circular Canvas

Below are 10 tips that helps you to get better results about the Circular Business Model Canvas.

1. Ensure clarity in your goal: Begin by clearly defining the primary objective you want to achieve with your Business Model Canvas. A well-defined goal will guide the entire process and ensure everyone is aligned.

2. Align the detail level with the objective: Adjust the level of detail on the canvas to match your specific goal. Being overly detailed or too vague can detract from achieving the desired outcome.

3. Include only the most relevant information: Focus on listing only the key elements that are most pertinent to your business model. Keep the canvas uncluttered by avoiding irrelevant details.

4. Establish connections between building blocks: Make sure the different building blocks on your canvas are interlinked and support each other. This helps in visualizing the relationships and dependencies between different aspects of your business.

5. Use clear and concise language: Avoid ambiguous or vague language on the canvas. Use straightforward and precise terminology to convey ideas effectively.

6. Develop each circular idea on its own canvas: Work through individual circular ideas on separate canvases. This allows for focused exploration and refinement of each concept without overlap.

7. Differentiate between assumptions and facts: Clearly distinguish what is based on assumptions and what is factual. This will help in analyzing the feasibility and reliability of your business model.

8. Differentiate the present from the future: Clearly separate the current business situation from your future projections. This distinction is crucial for identifying necessary changes and planning strategically.

9. Utilize different colors for post-Its: Use various colors for your post-it notes to categorize and differentiate between ideas, sections, or levels of priority. This visual aid can enhance clarity and organization.

10. Use images for better understanding: Reinforce your ideas with relevant pictures or icons. Visual elements can help convey concepts more effectively and make the canvas more engaging.

Want to get inspiration for new circular business models?

Get the book Business Model Hacking. This book gives you access to a powerful innovation methode. The core is that you use proven patterns to get new business model ideas instead of reinventing the wheel. It consists of more than 200 proven elements (hacks) that helps you to create better, more resilient business models. It consist multiple hacks that can be applied for circular business models and it also covered some interesting examples of gamechanging circular business models.

You won’t regret it.

Do you need help to create winning circular business models?

Consider our Business Growth Consulting services. You won’t regret it!