Collins Tonui, is the young founder of cocktails mixology company Colton Group. He founded his business and company during the KCB Lion’s Den’s investment show. He is an economics and statistics graduate.
Starting my business: Never let the opportunity to turn an idea you’re passionate about into a business pass you by. I had always been fond of cocktails way before I launched my business. It is this fondness and an interaction with renowned Kenyan investors that birthed my business of producing and selling bottled cocktails in 2016. Since I didn’t have adequate start-up capital, I applied for a chance to pitch my idea at the KCB Lion’s Den and was successfully selected as a finalist from the 5,000 applicants. I was looking for a Sh. 500,000 investment in exchange for 20 per cent equity. My pitch fell short because my idea was not an existing, branded and tested concept locally. The investors recommended that I put my brand into the market with focus on the end retail users then return with feedback. I refurbished my idea and hired professional mixologists who could prepare high-end cocktails for both private and professional events, and also perform daily deliveries of fresh cocktails and mocktails to consumers. Over the past two years, I have been partnering with a few prominent restaurants and hotels to build my business.
On losses: As a young entrepreneur, I am learning the hard way how to cope and avoid losses. A while back, I invested in an importation of women’ clothing business without doing proper research. Once I parted with my money, I realized that the goods clothing lines I imported didn’t move with speed. The quality and relevance versus the price of the goods and my investment depreciated rapidly and I just had to wrap it all up. I lost close to Sh. 100,000 but decided that this wasn’t going to shut me down. I went back to the drawing board and developed my cocktail cabinet business. It is important for young entrepreneurs to carry out thorough homework and due diligence before they send any coin into an investment. Don’t fall for the myth that budding entrepreneurs have space to make losses. No coin is worth losing.
On saving: I am currently saving through the lock savings account which requires me to save specific amounts within a specified duration of time. Previously, I had tried a more risky way of saving where I’d loan out the money I set aside for saving and have it repaid with interest. This didn’t work out too well. My borrowers paid me at their own discretion rather than mine. I wouldn’t advocate for it unless done within a legal framework and with set consequences upon default.
If I could start all over again: I’d launch my current cocktails business sooner. I’d also work smart as much as I work hard. What I’ve learned over the last two years is that without developing strategies that are fundamentally strong enough to enable the business run on its own, working hard alone will not be enough to make it break even.
On breaking even: Every entrepreneur wants their business to break even and start a cycle of growing profitability. This is doesn’t always happen because many of us want to start from the top. Learn the ropes, interact and borrow ideas from those who have excelled in business more than you, be patient but stay hungry for more. I started with just an idea but being flexible and accommodating of the business growth process is what enabled me to actualize it. Always know when to give your push a new growth strategy.