In 2016, Efua Bempong became a local sensation in Cape Coast for her creative blend of Ankara and chiffon. Her brand, Efua Styles, quickly gained a following on social media, with orders flying in from across Ghana and even a few from the diaspora. She rented a spacious shop, hired two apprentices, and was poised to expand into ready-to-wear pieces.
But by the end of 2021, Efua Styles had quietly shut down.
The reason? Efua had no idea where her business money ended and her personal money began.
“I Thought It Was My Money”
Like many first-time entrepreneurs, Efua started her fashion business with her personal savings. But as the business grew, she never created a separate account for the business. Every sale, no matter how large or small, went into her personal mobile money wallet or bank account.
“It was all coming to me,” Efua recalls. “I thought, ‘well, I worked for it, so it’s mine.’”
She used sales revenue to pay school fees, pay association dues, fund family emergencies, and even make donations at church — without tracking what belonged to the business.
At the same time, she kept buying fabric on credit, delaying payment to suppliers, and underpaying her staff. Eventually, suppliers refused to give her more fabric without full payment upfront. Her apprentices left due to salary delays. Customers complained of slow delivery times and missing fabrics. Yet, Efua couldn’t explain where all the money had gone.
The real shock came when she finally hired a friend studying accounting at UCC to look into her books. The result? Her business had been running at a loss for years.
The Business Lesson: The Business is Not You
Many Ghanaian entrepreneurs treat their businesses like a personal piggy bank. But your business is a separate entity. It must be treated like one. Mixing personal and business finances is not just risky, it’s reckless.
Without a clear boundary, you can’t track profitability, you can’t make informed decisions, and you lose the discipline needed to grow.
Principles for Separating Business and Personal Money
• Open a Business Account – From day one, open a separate mobile money wallet or bank account solely for business transactions.
• Pay Yourself a Salary – Even if the amount is small, decide what your monthly income from the business is. Stick to it.
• Track Withdrawals – If you must take from the business, log it as a withdrawal or loan. Account for every pesewa.
• Budget Personally – Don’t rely on the business to fund random expenses. Create a personal budget that doesn’t depend on dipping into sales revenue.
• Use Accounting Tools – Use tools or even simple spreadsheets to track business income and expenses.
• Hire or Consult a Bookkeeper – Monthly reconciliation can show you where your money is actually going. A part-time or freelance accountant can make all the difference.
Final Thought
Efua is back on her feet now, slowly. She’s rebranded and now runs a tighter, more disciplined operation.
“When I think of how much money passed through my hands, I want to cry,” she admits. “But I’ve learned that loving your craft is not enough. You must respect the structure.”
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Disclaimer: This story is fictional and was created to highlight a real challenge facing Ghanaian businesses. Any resemblance to actual persons, businesses, or events is purely coincidental.
