Publisher of Ovation International, Dele Momodu, has revealed that he lost more than $500,000 while attempting to venture into the restaurant business in Accra.
Momodu disclosed this during an appearance on the podcast Building Wealth with Femi, where he reflected on the financial setback and the lessons he learned from diversifying into a new industry.
According to the media entrepreneur, the investment was part of an attempt to expand beyond publishing and explore other business opportunities.
“The time I lost money was when I tried to diversify,” he said during the podcast. “People always think diversification means you will automatically make more money.
”No. Unless you are very lucky, you can lose everything while trying.”
Momodu explained that the project was a restaurant named House of Ovation, which he launched in Accra with high expectations.
The establishment, he said, was designed to reflect the lifestyle brand associated with his media platform.
He added that significant resources were invested in the project, including hiring experienced chefs and setting up high-quality facilities.
“It was a very beautiful concept with great ideas and good food,” he said, noting that he made efforts to assemble a strong team to run the business.
Despite the preparation and investment, the venture eventually collapsed due to several operational and logistical challenges.
One of the major issues that affected the project involved imported kitchen equipment.
Momodu said he paid about $60,000 to a company in South Africa to produce customised industrial catering equipment for the restaurant.
The order included specialised kitchen appliances, refrigerators, and branded dining utensils such as plates, spoons, forks and knives.
However, when the equipment arrived in Ghana in 2007, it was held up at the port for several years due to administrative complications.
According to him, the shipment was not released until 2010, long after it was expected.
“That equipment arrived in January 2007, but I did not get it until 2010,” he recalled.
Lesson on Business Diversification
Momodu described the experience as a difficult but valuable lesson about the risks involved in diversifying into unfamiliar sectors.
Reflecting on the failed venture, he said the experience taught him that business expansion requires careful planning and an understanding of potential risks.
“It was one of those situations where everything that could go wrong went wrong,” he added.
