Stephen Machua works at Piquant Spices as the Managing Director. Piquant Spices is a manufacturing and processing startup that manufactures spices and seasonings for food and drinks.
Piquant Spices started in 2021, however its first products (Tea Masala and Pilau Masala), got into the market in 2022. For almost 6 months in 2021, we spent time in market research, understanding the manufacturing processes, the science behind spices and general product development.
The business was lucky to start through a grant. The initial capital injection was approximately Sh. 1.5 million which went into product development, market research, KEBs certification and design and printing of its unique packaging materials.
Currently we have Tea Masala, Pilau Masala and Mixed Spices as our signature products. Our products are uniquely formulated for whole family use and they are well premiumly-packaged to preserve the spices’ potency for years.
It took almost a year to break-even. However, running on a lean-startup model may give one an illusion of profit-making because we are still using incubation facilities such as the Kenya Industrial Research and Development Institute to do our production.
I believe the story would be different if we were in our own spaces where the cost of electricity, licenses and compliances would shoot our expenses up.
Some of the challenges I have faced include having to pay VAT and other government Levies too early even before the business gets its right footing. I think there should be tax waivers especially for startups in manufacturing which is capital and labour intensive.
Access to markets and stamping brand authority has also been a challenge, primarily, because sales and marketing activities are costly and they will continue rising with the increased cost of fuel and advertising taxes.
Some of our raw materials are imported and they are affected by the exchange rates, in the past 6 months, we have experienced the highest fluctuations in raw materials prices with some having up to 150 percent increase from the time we started manufacturing.
Spices business and manufacturing is a totally new sector for me. I used to be in the development sector for some years. I was employed on short contracts for roles in consulting, project management, public policy, digital advisory. Interestingly, all these past experiences have come in handy in growing the business.
Being a risk taker, I am constantly making money mistakes, many times for not taking calculated risks. My first shot in agri-business saw me lose over Sh. 250,000 in tomato farming.
I was a remote-call farmer who relied on the “Sound Advice” of the farm manager on the ground. I never did my research or question anytime a farm-need arose. It was more of, the farm needs X amount of money for Y and Z and I would quickly M-PESA the farm manager.
I scored A- in KCSE; KUCCPS has placed me in TVET for Diploma in Nutrition
Later, I discovered the money I spent was enough to till a bigger piece of land with better returns than the Sh. 9,000 I got from over Sh. 250,000 investment.
Getting Piquant Spices products on Twiga Foods Distribution system has been my greatest business moment so far. It has helped us cut down the costs of distribution. It’s now easy to get Piquant Spices Pilau Masala in a shop within estates. I managed to get into Twiga Foods through an email and they have been supportive so far.
If I could start afresh, in any business or professional engagement, I would be keen to put my paper work right from the word-go. I have lost money by not having legal agreements in place, in such a way that someone can get-away with something just because it was not documented or there was a gentle-man’s agreement.
Everything else has been a learning process and as earlier mentioned, Piquant Spices is run on a lean start-up model where we learn and improve the business on the go.
Saccos and banks have come in handy in building a good credit history in anticipation of my future money needs. It’s been effective so far because I can access unsecured loans to boost my business. Previously, I used money market funds but you will realize this is a place where you put money that you may not need in the short-run.
Business is always demanding for money and you need to be in a space where you can easily access your savings when running short of cash to boost the business.
The universe conspires to provide a support system to those who have the courage to start; therefore you should shake off you fears and work on your dreams like tomorrow never existed. When it comes to business versus employment, go where your heart is.
Remember, entrepreneurship is very demanding. More often than not, you will find yourself working five times more than the people you have employed until you get to a point where money starts working for you.
A version of this profile feature on Stephen Machua of Piquant Spices was also published in the Saturday Magazine. The Saturday Magazine is a publication of the Nation Media Group.
