Chapter 1: Rethinking Business Practices

In many aspects of life, traditional methods are often employed without questioning their effectiveness. Frequently, these established practices can be quite harmful. Recently, I came across this concept while diving into a marketing book. A common notion is that "Funnels" represent the pinnacle of marketing strategy. But is this really the case?

When we analyze the structure of Funnels, we see they essentially form a line. And what's the inherent issue with a line? It has a definitive end. Once a customer traverses through the Funnel, what happens next? That’s the crux of the issue. You could certainly devise another Funnel to usher them through, but how sustainable is that? Eventually, customers may tire of your relentless push for sales. They might feel bombarded, akin to the pressure from a used car salesperson—"If you thought the last offer was amazing, just wait until you see this one!" But wasn’t the previous offer already supposed to be fantastic? How long until they stop paying attention?

This linear thinking permeates all areas of business. For instance, when we view the Supply Chain as a simple line, it brings its own set of complications. To boost profits, more products are necessary. This results in an urgent push for raw materials. If suppliers struggle to keep up, the natural inclination is to switch suppliers, which often leads to a decline in quality. Herein lies a dual challenge: dwindling supply coupled with inferior quality. The shortage compels price hikes, while the drop in quality leads to dissatisfied customers.

Consider the landscape of "Fast Food," which is marketed as an affordable option. Have you noticed that the cost of dining at some sit-down restaurants is now comparable to that of fast-food outlets? Moreover, the quality of fast food has noticeably deteriorated. Interestingly, I've experienced quicker service at sit-down restaurants compared to the extended wait times in fast-food drive-throughs. How long will it take before the public catches on to these discrepancies?

This same linear mindset affects employees. Organizations often demand heightened performance, pushing their workforce to the brink of burnout. This pressure results in the need to hire more staff. However, stress can be contagious (as shown by Neurocardiology studies), causing new hires to experience burnout more swiftly. Organizations request increased productivity, but employees struggle to deliver until the organization collapses under inefficiencies.

The linear business model continues to extract more from a diminishing pool of resources while yielding increasingly less effective results. While it may offer short-term gains, it is ultimately unsustainable in the long run. The solution lies in shifting away from this shortsighted, linear thinking and adopting a Circular Business Mindset.

When we consider marketing, the objective should not be to funnel customers out. Instead, they should be integral to the process. You offer value to them, they respond with their needs, and the cycle continues. Customers remain within the Circle, enhancing mutual benefit.

Regarding supplies, the aim isn’t merely to consume resources until depletion. Supplies should be part of a collaborative process where you contribute back, fostering a system that generates more than it consumes, making resources more accessible and affordable.

Similarly, with employees, the goal shouldn’t be to extract more labor from them. They should participate in the process. When you provide support, they contribute insights on improvements and their own needs, reinforcing their commitment to the organization.

Applying this Circular approach throughout the business ensures that everything continuously contributes to the cycle. By design, all participants experience growth and improvement. As the Circle expands, it generates greater value for everyone involved, creating a regenerative environment. This intentional design ultimately leads to a lasting Regenerative Legacy.

The first video titled "Circular business model explained | IB Business Management | Teacher RK" delves into the intricacies of the circular business model, illustrating its benefits and practical applications.

Chapter 2: Embracing Circularity

The second video, "Circular Economy Business Models explained," provides an overview of various circular economy frameworks, emphasizing their importance in modern business practices.