Cape Town friends sold house and car to launch Nawty Water

Two Cape Town friends who started a hard seltzer company say they gave up almost everything they owned to get it going. According to IOL, Michael Tones and Jason Reid’s brand, Nawty Water, can now be bought at over 500 shops around the country after expanding into Pick n Pay.

The co-founders say the road there taught them that a lasting business needs patience, measured risks and good timing. “We gave up everything we had,” Tones said.

A joke that became a company

The idea grew out of a gap the friends spotted for alcoholic drinks that are low in calories but still taste good. The name began as a joke. Someone called an alcoholic drink “Naughty Water”, and Tones registered the trademark just two days afterwards. He then asked friends whether any of them wanted to invest, and Reid came on board to help develop the concept.

The two had first talked about going into business together back in Grade 9, but the right opportunity did not come along at the time. Their later careers took them in different directions, though both wanted to build something of their own.

What each founder gave up

Reid had been working on yachts abroad and putting money aside, because he wanted to start a business and needed capital. When Nawty Water came up, he saw it as the chance he had been waiting for. “Yes! Finally! It’s happening,” he recalled thinking.

Tones was already running three other businesses, among them one in media and marketing. He felt the work did not excite him, and he began asking himself why he was putting his energy into other people’s goals.

To fund the venture, Tones sold his house and moved back in with his mother at 29. Reid came home from overseas, sold his car, which he described as his dream car, and then went about six months with no income.

Growing at a manageable pace

The industry was new to them, and the founders say it brought tough choices. They came close to running out of stock three times. At times they turned retailers away because they could not keep up with the demand.

Reid said progress often meant acting before all the answers were in. “That’s how you get somewhere,” he said, adding that it comes from jumping in headfirst.

Tones said a business should first prove it can work on a small scale before chasing fast expansion. “If you can make something work at its smallest form, that’s what your goals should be,” he said.

What this means for aspiring entrepreneurs

The story is one founders’ account rather than a guide, but a few lessons stand out from what they shared:

• Starting a business can demand real personal sacrifice, including loss of income.
• Turning down orders you cannot fill may be better than overpromising.
• Proving the idea on a small scale comes before rapid growth.

This story is based on reporting by IOL.