By Dr. Sama A | The Sustainability Side, Episode 4 Recap

If you are running a small or medium-sized enterprise (SME), I want you to take a moment and think about your back room.
You know that pile of offcuts you have been meaning to do something with? That equipment you replaced but haven’t sold? Those customer returns sitting in storage?
What if I told you that stuff isn’t just clutter, it is potentially worth thousands of dollars in additional revenue?
In this episode of The Sustainability Side, we move away from lofty academic theories and dive into practical, profitable strategies designed specifically for you—the small business owner. We were joined by the incredible Karen Formosa, a leading circular economy advocate and the force behind Practical Sustainability in the UK. Karen specializes in helping SMEs unlock the power of circular thinking without needing massive budgets or huge teams.
Here is how you can stop running in circles and start thinking in them.
1. The Mindset Shift: Flipping the Model
To understand the opportunity, we first have to understand the flaw in how we currently do business.
The Linear Economy (Take-Make-Waste)
Traditionally, business follows a straight line. We take resources from the earth, make products, use them, and then dispose of them as waste. This model assumes infinite resources and infinite waste capacity—neither of which exists in the real world.

The Circular Economy (The Continuous Loop)
The circular economy flips this on its head. Imagine a circle where resources flow in continuous loops. Waste from one process becomes input for another. Products are designed to be repaired, reused, or remanufactured. Nothing truly gets thrown away.
Why this matters to you: In a linear model, you have one chance to make money (the sale). In a circular model, every point in that circle represents a potential new revenue stream.
2. A Concrete Example: The Furniture Maker
Karen shared a fascinating case study of a small furniture maker that perfectly illustrates the difference between thinking linearly and thinking circularly.
- The Traditional Approach: A small business buys wood, makes tables, and sells them. When the customer leaves the shop, the relationship is over. When the table breaks, it goes to the landfill. This is one revenue stream.
- The Circular Approach: This same manufacturer thinks deeper:
- Design for Repair: Tables are built to be easily fixed if damaged.
- Revenue Stream #2 (Maintenance): They offer an annual maintenance service. The customer pays for ongoing care, creating a “lifetime relationship.”
- Revenue Stream #3 (Buy-Back): When the customer is done, the business buys the table back, refurbishes it, and resells it.
- Revenue Stream #4 (Upcycling Waste): Wood scraps are turned into cutting boards or smaller decor items.
- Revenue Stream #5 (Selling By-products): Sawdust is bagged and sold to local gardeners.
By changing their mindset, this SME turned one table into five distinct avenues for profit.
3. The SME Advantage: Agility over Scale
Many owners fear sustainability is too expensive. Karen addressed this head-on: SMEs have distinct advantages over Fortune 500 companies.
Unlike large corporations bound by red tape, you have agility. You can pivot, test, and implement changes faster than any multinational giant. You know your customers personally, allowing you to build local partnerships that create mutual value.
Three Core Principles for Success:
- Design out waste: Plan for the product’s end-of-life from Day One.
- Keep products and materials in use longer: Focus on services that extend life rather than just the one-time sale.
- Regenerate natural systems: Move from “doing less harm” to “doing more good” for your local community.
4. Your Road Map: How to Start This Week
You don’t need perfection to start; you just need momentum.
- Step 1: The Waste Audit: Track what your business throws away or pays to dispose of. Just note it down on a pad of paper.
- Step 2: The Assessment: Look at that waste list. Is that waste an input for someone else? Can it be upcycled?
- Step 3: Test One Idea: By the second week, identify just one idea worth testing. Start small, be transparent with your customers, and use their feedback to improve.
Conclusion: A Smart Business Strategy
The circular economy isn’t just an environmental movement; it is a smart business strategy to cut costs and boost profits.
- Every piece of waste is money you’ve already spent.
- Every transaction is the start of a long-term relationship.
- Every resource challenge is a partnership opportunity.
Don’t just watch from the sidelines—join us on the sustainability side.
Want more actionable strategies? Support The Sustainability Side on Patreon or Coffee to access exclusive bonus episodes and deep-dive toolkits.
Connect with Karen Formosa: Check out her channel, Practical Sustainability , or reach out to her on LinkedIn for a customized plan to take your business circular.
