Brothers turn father’s ailing firm into Sh58 million copier business

Mr Tawfiq Magan shares a light moment with employees at his Total Office Solutions outlet in the Nairobi central business district. The firm has outlets in other towns. PHOTO | COURTESY 

By Wanjiru Waithaka

In Summary

• Mr Magan had no experience running a company and was, understandably, terrified.
• He must have done something right because 10 years later the company is still around, having made Sh58 million in revenues last year as well as being listed among the Top 100 companies list last year.

Tawfiq Magan knows first-hand what it is like to be thrown in the deep end.

When his father asked him to take over Total Office Solutions in 2005, he felt like he was being asked to save the Titanic. The company was quite literally sinking under the weight of mismanagement by its former managing director.

His father, a lawyer by profession, had invested in the company in 2003 and stayed as a silent partner.

By the time he discovered the extent of the problem, the company was on its death bed. He had by then sunk in much of his own money, making him the majority shareholder with a stake of about 65 per cent. He sacked the managing director and put his son in the hot seat.

Mr Magan had no experience running a company and was, understandably, terrified.

“My initial plan was to sell off the assets and pay off as much as we could of what we owed the banks and then look for something else to do,” he told Enterprise.

After three months, he realised the firm had potential and decided to give it another three months.

He must have done something right because 10 years later the company is still around, having made Sh58 million in revenues last year as well as being listed among the Top 100 companies list last year.

Refurbished copiers

Total Office Solutions pioneered the concept of refurbished photocopiers. The company imports used copiers, strips them apart, replaces all the parts that are not working properly, puts the copiers back together and sells them as practically new.

Their customers are mostly corporates and small businesses that cannot afford brand new copiers. They source the copiers from Europe – Sweden, Netherlands, Germany, Spain and France.

“Europe is competitive in terms of quality and shipping compared to the United States,” he said.

The concept proved so successful that the company now has more than 20 competitors. While he invites competition, he says some of his rivals simply import and sell used copiers without refurbishing them.

“They are able to undercut us on price because they don’t work on the copiers at all like we do,” Mr Magan pointed out.

To differentiate its products, the company sought ISO certification in 2012. Adding that to being a member of the exclusive Top 100 Club is another big boost in terms of customer trust.