How I Lost Over $500,000 In Failed Restaurant Business In Ghana – Dele Momodu

Dele Momodu, the founder of Ovation magazine, has revealed that he lost more than $500,000 after starting a restaurant in Accra, Ghana.

Dele Momodu spoke about the setback during an appearance on the podcast “Building Wealth with Femi”.

According to him, the loss happened when he decided to expand his investments into a new line of business.

He explained that trying to diversify does not always guarantee success, noting that it can lead to serious financial losses.

“The time I lost money was when I tried to diversify,” Momodu said.

“People always think that diversification means you will make more money. No, unless you are very lucky, you can lose all your money while trying that.”

Momodu said he opened a restaurant called “House of Ovation” in Ghana, stressing that the project was launched with big plans and careful preparation.

“I tried to do a restaurant business in Accra, Ghana, and I lost over half a million dollars,” he said.

Momodu said the restaurant was designed to be attractive and well-equipped, and he hired skilled chefs to run the kitchen.

“It was called the House of Ovation in Ghana. Very beautiful, great ideas, good food. I employed the best chefs,” he said.

Despite the effort and investment, the business did not succeed.

When asked what caused the failure, Momodu said the venture faced several problems.

“Everything that could go wrong went wrong,” he said, explaining that one major issue involved the kitchen equipment he ordered from South Africa.

“I paid $60,000 to a company in South Africa to customise my industrial catering equipment. My plates, my spoons, my forks, my knives, of course, refrigerators, everything,” he said.

However, after the equipment arrived in Ghana, Momodu said it was held at the port for several years.

“In 2006 October, the goods arrived in a container in Ghana in January 2007,” he said.

“Do you know when they released it to me? I got it out in 2010.”

The long delay created major difficulties for the restaurant and contributed to the large financial loss he experienced.

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