Publisher of Ovation Magazine, Dele Momodu, has disclosed losing over $500,000 after attempting to enter the restaurant business in Accra, Ghana.
The media entrepreneur spoke about the setback during an appearance on the podcast ‘Building Wealth with Femi’.
“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.”
He revealed that the failed project was a restaurant named ‘House of Ovation’, which he had launched with high expectations and significant planning. “I tried to do a restaurant business in Accra, Ghana, and I lost over half a million dollars,” he said. “It was called the House of Ovation in Ghana. Very beautiful, great ideas, good food. I employed the best chefs.”
Momodu explained that the venture faced a string of challenges that contributed to its collapse. “Everything that could go wrong went wrong,” he said.
A significant issue arose with imported kitchen equipment. He recounted paying $60,000 to a South African company to customise industrial catering equipment, including plates, cutlery, and refrigerators. “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.
The equipment arrived in Ghana in January 2007 but was delayed at the port for several years. “Do you know when they released it to me? I got it out in 2010,” Momodu said.
The experience, he said, was a costly lesson on the risks of diversification in business.
Boluwatife Enome
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