This chapter explores the transition from linear to circular business models as a pathway to sustainable economic development. It introduces five archetypal circular business model patterns—circular supply, product life extension, product-as-a-service, resource value extension, and regenerative models—illustrated with real-world cases. A four-step circular innovation process is outlined, integrating design thinking and business model innovation practices, supported by key organizational capabilities such as vision, life-cycle perspective, experimentation, and ecosystem collaboration. By synthesizing best practices, the chapter offers firms a blueprint to innovate business models that simultaneously pursue profitability, resilience, and positive environmental impact.