Seperate fondant into even chunks (one chunk for each color you plan to do).
Add 1 drop of food coloring gel to each chunk and mix until incorporated. Add more drops for more vibrant colors.
Once dyed, roll each chunk into a long snake-like piece.
Lay each colored piece next to each other and gently press together.
Twist combined piece into a even larger snake-like piece.
Wrap piece into a spiral and place on a piece of parchment paper.
Use a rolling pin to flatten into 1/16" thickness.
Use shaped cutters to cut. Gently peel away excess and carefully transfer cut shapes to another piece of parchment to dry.
After cutting the first round, be careful in kneading the scraps back together. You want to gently combine them together and roll out again, to prevent the colors from becoming muddy.