3 Tips to Run a Successful Business
Mismanagement; ego without sustainable business model was cause of sinking Kingfisher Airline. Standardization makes operation simple. Indigo; Fleet, Same seating arrangement, same aircraft, Standardization, easy operation, low fare carrier Kingfisher; Low cost model, premium model. Board level, management level failure; they never appointed long term MD or CEO. Owner was everything; who could not manage the business successfully, famous low cost carrier. Not money, not brand; runs the business. Management and operational excellence runs the business.
Mistake of acquisition and expansion; Bought another loss making and bleeding airline. Stepped in International marketing without evaluating; high competition, low margin and huge investment. Bought Deccan Airline and named it Kingfisher Red and there was difference of service in both. No need to change the name after buying. They could make Kingfisher Premium International and Kingfisher Red low cost domestic carrier. But they didn't. Now Kingfisher was in competition with Kingfisher Red. Kingfisher Red was damaging the parent Kingfisher. Here was Brand Identity Crisis. Expansion without gross margin is committing suicide. Failing startups; expansion of business with bank loans without margin. Liquidity, profitability, loan repayment, reserve and cash surplus; Acquisition and Expansion should be properly managed. 

Don't misunderstand fast cash and low profit (retail 4-5 % margin). Real Estate business; slow cash with 15-20% margin. Low margin; playing with your cash can be extremely dangerous on the basis of wrong calculation (past) and wrong assumption (future). Two important points; Business climate (external), business model (internal). There is no control on Business climate. All airlines are in loss. There is only left business model and operational excellence. If crew is composed of male and female mixed; airline has to provide separate rooms; Indigo hired only female crew; crew can share the rooms. There are two ways to make money; selling more tickets, control expenses. When Lehman Brothers in USA went out of business; it was a time of recession for the whole world. Economic slow down and acquisition / expansion with loans hit Kingfisher badly. Low profitable routes, depreciation of currency, hike in fuel price (50% expense is only fuel cost), airport charges. Wrong expansion, wrong calculation; 5% profit margin is considered great success in airline business. In actual; you need deep pocket and loss absorption capacity. Kingfisher was making good money in another fun business. Airline is a business of caution. Both businesses run with different temperaments. 9,000 crore loan was there but was not enough to save Kingfisher. Kingfisher sank due to; Lack of CEO, Lack of Framework. Adopt prevention method instead cure method to run your business. 
Lutf-e-Kalaam Kya Jo Na Ho Dil Mein Dard-e-Ishq
Bismil Nahin Hai Tu To Tarapna Bhi Chor De
Theology is no pleasure if heart does not have Love’s pathos
If you are not the Wounded, you should abandon fluttering also

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