When Growth Exposes Weakness: A Hard Lesson from a Ghanaian Startup

Introduction
Every entrepreneur dreams of the moment when demand for their product skyrockets. Growth feels like validation — proof that your idea is working. But as I’ve seen firsthand, rapid expansion can just as easily expose cracks in the foundation of a business.

Here’s a real story of a Ghanaian agro-processing startup that learned the hard way why systems and people matter as much as vision.

 

The Startup with Big Potential

This agro-processing company had a winning product. Demand was strong, interest from overseas was growing, and the founder was a passionate visionary ready to scale.

But as sales picked up, so did the pressure. To keep up, the founder turned to family members for help, thinking loyalty and trust would be enough.

Unfortunately, it wasn’t.

 

What Went Wrong

  1. Poor Hiring Choices
    The founder’s cousin was brought in as operations manager. Without the right expertise in supply chain management or logistics, poor decisions around inventory and procurement quickly piled up.
  2. No Documented Systems
    With no standard operating procedures (SOPs), mistakes couldn’t be traced or corrected. Instead, they were repeated — over and over again.
  3. Weak Financial Management
    Cash was handled casually, with little tracking or reconciliation. This created blind spots in the company’s financial health.
  4. Operational Chaos
    When the business finally landed a big export order, poor communication and disorganized production meant they couldn’t deliver on time.

The consequences were severe: they lost the export customer, failed to stock local stores, and even faced a PR issue when spoiled goods made it to market. The founder had to fire his cousin at a major personal and financial cost — and recovery was slow.

The Hard Lesson

The lesson from this story is simple but powerful:

  • You begin with a vision.
  • But it’s the right people and systems that keep you going.

Every decision about hiring, structure, and operations either builds a strong foundation or creates fault lines that can derail growth.

Takeaway for Entrepreneurs

  • Don’t let loyalty outweigh competence when hiring.
  • Formalize systems early — SOPs, financial controls, communication structures.
  • Growth requires repeatability. You can’t scale chaos.

The founder in this story had the product and the market, but not the systems. The setback was painful, but it reinforced the truth that sustainable success requires more than passion.

Closing
If you’re scaling a business, ask yourself:
Are my systems strong enough to grow with me?
Or am I relying too much on vision and trust?

This is the difference between businesses that thrive and those that stall.

 

About Eric Osei

Eric Osei is a seasoned business development, author, co-founder of New Africa Investment Impact Fund B.V. and investment expertwith extensive experience in entrepreneurship, marketing, and finance.He holds certifications from the Ghana Stock Exchange and the UnitedNations Industrial Development Organization (UNIDO) in ImpactInvestment, and has completed ESG training from the Corporate FinanceInstitute. With a strong network among Ghanaian and internationalbusinesses, particularly Dutch companies and government institutions,Eric has been instrumental in attracting investment and supportingreturn migrants. He has worked with notable organizations such as theGerman International Cooperation (GIZ-MOAP) and the ShellFoundation, where he coached SMEs on growth strategies and capitalraising. His newsly launched book Funding Options for Businesses is available in Dutch book retail stores.