Designing Business Models Fueled by Ethics and Emotional Capital for Enduring Success

By: Zaiba Sarang, Co-founder, iThink Logistics

Zaiba Sarang is a dynamic leader with a strong background in sales, technology, and business strategy. With a diploma in entrepreneurial studies from IIM Bangalore and certifications from the Indian School of Business, she has successfully driven growth and innovation in tech-powered solutions across multiple ventures.

In a recent conversation with Women Entrepreneurs Review Magazine, Zaiba explores unexpected challenges that have surprised even seasoned entrepreneurs. She discusses strategies for startups to prepare for unforeseen unknowns, build self-sustaining talent ecosystems, prioritize ethical considerations in innovation, and shift the focus from "failing fast" to "failing smart" for long-term learning.

In a market known for unpredictability, what's something that has caught even seasoned entrepreneurs off-guard in recent years? How should startups prepare for the ‘unforeseen unknowns’ that data and trends can’t predict? 

The COVID-19 pandemic was an event that even experienced entrepreneurs couldn't foresee. It disrupted supply chains, changed consumer behavior overnight, and challenged traditional business models. To prepare for such "unforeseen unknowns," startups must build resilience by embracing agility. They should create adaptable strategies, foster a culture of quick learning, and diversify revenue streams to mitigate risks. Being prepared for uncertainty means being flexible, prioritizing innovation, and having a mindset of continuous improvement.

Startups often focus on building teams, but how can founders create a self-sustaining talent ecosystem that goes beyond traditional hiring? How does this ecosystem foster agility and innovation in a fast-evolving landscape? 

A self-sustaining talent ecosystem emerges when founders cultivate a culture of ownership, mentorship, and internal growth. This means not just hiring for roles but investing in employee development and creating opportunities for cross-functional collaboration. Encouraging continuous learning, offering leadership opportunities, and creating an environment where employees feel empowered to contribute their ideas foster agility and innovation. Such ecosystems enable startups to adapt quickly to industry changes while nurturing a workforce that is capable of leading the business into new growth areas.

Many startups are launched with the idea of solving problems. What’s the case for creating a startup that doesn’t focus on fixing problems but instead reshapes desires or creates entirely new consumer needs? How do you see this evolving in the current economy? 

Startups that reshape desires or create new consumer needs often lead to disruptive innovation. Think about how companies like Apple created entirely new product categories, such as the iPhone, which redefined consumer expectations. Instead of fixing existing problems, they introduced new possibilities. In today’s economy, consumers are increasingly driven by experiences, personalization, and values. Startups that can tap into these trends by creating new aspirations or desires are poised to thrive in markets where innovation outpaces the existing demand.

Beyond financial and intellectual capital, how should entrepreneurs harness emotional capital understanding the emotional needs of employees and customers to create a long-lasting competitive edge in today’s market? 

Emotional capital is a powerful driver for loyalty, trust, and engagement. Entrepreneurs can harness it by deeply understanding the needs and values of both employees and customers. For employees, this means creating a work environment where they feel valued, supported, and aligned with the company's mission. For customers, it’s about creating products or services that resonate with their emotional and experiential desires. Companies that invest in emotional capital can build stronger relationships, leading to a competitive edge that’s based on trust and shared values, not just transactions.

As startups scale, there’s often pressure to prioritize growth over ethics. How can founders design a business model where ethical considerations are not just guardrails but become a primary driver of innovation and customer loyalty? 

Ethics should be embedded in the core business model rather than being an afterthought. Founders can design a model that aligns with ethical values such as sustainability, transparency, and fair treatment of workers. By integrating these principles into the brand’s mission, processes, and customer-facing practices, startups can differentiate themselves. Consumers today are more conscious and reward businesses that stand by their ethical commitments. When ethics drive innovation such as developing eco-friendly products or transparent supply chains it leads to customer loyalty, which in turn fuels growth.

 In the current entrepreneurial culture that celebrates failure as a badge of honor, how can startups shift their focus from "failing fast" to "failing smart"? How should they intentionally architect failure to optimize long-term learning rather than just speed? 

Failing smart means learning from failure in a structured way that benefits long-term strategy. Startups can do this by conducting small-scale experiments, ensuring that failures are not catastrophic but instead become stepping stones for improvement. By analyzing what went wrong and using the insights to refine products or processes, startups can derive valuable lessons. Rather than chasing the speed of iteration alone, startups should focus on intentional learning making every failure a calculated risk that contributes to overall growth.

How can startups build business models that embrace a post-scarcity mindset where resources are abundant or digitally scalable by monetizing abundance rather than scarcity, in industries where this thinking hasn’t yet taken root? 

Startups can adopt a post-scarcity mindset by leveraging digital resources and technology to scale without being limited by traditional constraints. For example, using cloud platforms, AI, or digital tools allows businesses to offer services that can be scaled infinitely at little marginal cost. In industries like logistics or e-commerce, startups can focus on creating value from data, automation, and connectivity, rather than being constrained by physical infrastructure or labor. This shift from scarcity to abundance can unlock new revenue models that capitalize on innovation rather than limited resources.