"Explore funding requirements for circular business models with this tool. Determine external financing needs, investment types, and funding partners. Design your transformation journey and identify key barriers to overcome."
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Funding requirement analysis introduction The funding requirement analysis tool helps you to reflect on the funding requirements of your circular business idea and pilot, and the activities related to them Template: Finance requirements Purpose What activities are required to finance the circular business model at your company? 1) Please mark which business model you are exploring and require funding for Build to last Repair & Maintain Recycle / upcycle Illustration of the tool Return Upgrade Circular Supplies Resell Product as a Service Share Remanufacture Performance as a Service 2) Based on the business case calculations you did, what are the funding requirements? What share would need to be financed externally? What type of investments will be required? What amount of money you need? A B C Fixed investments/ equipment No additional investment 500.000 999.999 Inventory and working capital < 50.000 > 1.000.000 % Hiring and training of employees 50.000 99.999 Research and development 100.000 249.999 1. Mark the business model you are considering to implement 250.000 499.999 Other: 3) Which funding instrument would be appropriate for your cause? 2. Reflect on a) The type of investments required b) The amount of investments needed c) The share of external financing required 4) Which funding partner would you approach? 71 Instructions 3. Describe the appropriate funding instrument for your case Chapter 5: How to design the transformation journey? Supporting materials VALUE CASE SUMMARY 4. Identify the funding partner(s) you could approach for funding Value case summary 1,00 0,90 0,80 0,70 0,60 0,50 0,40 Overall value potential [ ] 0,30 Year 1 Year 2 Year 3 Year 4 Year 5 0,20 Total revenue potential [ ] 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,10 Total EBITDA potential [ ] 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 Investment need [ ] 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 5. List activities required to finance the circular business model at your company Year 1 Year 2 Year 3 Year 4 Year 5 Total revenue potential [ ] Investment need [ ] Breakeven year: > 5 years Breakeven Total EBITDA potential [ ] Business model Nr. Sub-model Total revenue potential [ ] Total EBITDA potential [ ] Total investment need [ ] Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Circular supply chain 1.1 Build to last 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 1.2 Circular supplies 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR Sharing platform 2.1 Share 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR Product Life Extension 3.1 Repair & Maintain 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 3.2 Upgrade 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 3.3 Resell 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 3.4 Remanufacture 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR 0,00 EUR Key barriers related to financing circular models and ways to overcome them Calculate high-level business case to understand funding requirements Illustrative playbook pages please refer to the entire chapter for support. 2
Funding requirement analysis example Template: Finance requirements What activities are required to finance the circular business model at your company? 1) Please mark which business model you are exploring and require funding for Build to last Repair & Maintain Recycle / upcycle Return Upgrade Finalize business case calculations to understand funding need Apply for funding from Business Finland Circular Supplies Resell Product as a Service Share Remanufacture Performance as a Service 2) Based on the business case calculations you did, what are the funding requirements? What share would need to be financed externally? What type of investments will be required? What amount of money you need? A B C Example Fixed investments/ equipment No additional investment 500.000 999.999 50 Inventory and working capital < 50.000 > 1.000.000 % Hiring and training of employees 50.000 99.999 Research and development 100.000 249.999 250.000 499.999 Other: 3) Which funding instrument would be appropriate for your cause? Research grant 4) Which funding partner would you approach? Business Finland 71 3
Template: Finance requirements What activities are required to finance the circular business model at your company? 1) Please mark which business model you are exploring and require funding for Build to last Repair & Maintain Recycle / upcycle Return Upgrade Circular Supplies Resell Product as a Service Share Remanufacture Performance as a Service 2) Based on the business case calculations you did, what are the funding requirements? What share would need to be financed externally? What type of investments will be required? What amount of money you need? A B C Fixed investments/ equipment No additional investment 500.000 999.999 Inventory and working capital < 50.000 > 1.000.000 % Hiring and training of employees 50.000 99.999 Research and development 100.000 249.999 250.000 499.999 Other: 3) Which funding instrument would be appropriate for your cause? 4) Which funding partner would you approach? 5
