What Ami Colé’s Shutdown Teaches Us About the Cost of Growth Without a Financial Backbone
When Ami Colé announced it was shutting down this fall, a wave of grief rippled through the beauty and creative community.
It wasn’t just about losing a clean beauty brand. It was about losing this clean beauty brand — one that was created unapologetically for melanin-rich skin, rooted in heritage, and backed by a founder who clearly had the vision, voice, and talent to lead.
So what happened?
Ami Colé didn’t collapse because the product was bad. Or because there wasn’t demand. Or because the mission wasn’t strong enough.
It shut down because, behind the scenes, the financial structure couldn’t hold the weight of the growth.
And this isn’t rare. Especially for Black-owned brands trying to scale while staying mission-driven.
A Familiar Pattern, Especially for Black Women Founders
Ami Colé was founded in 2021 by Diarrha N’Diaye-Mbaye, a beauty industry veteran who had worked at L’Oréal and Glossier. Within just a few years, she raised $3 million in funding, landed features in Vogue and Oprah’s list, and expanded into 600 Sephora stores across the country.
On the outside, it looked like a success story.
But here’s the thing: less than 1 percent of venture capital goes to Black women founders (ProjectDiane, 2023). And the small slice that does get funded often comes with pressure to scale quickly, look investor-ready, and hit metrics that don’t always align with long-term sustainability.
Founders are expected to carry it all. Cultural storytelling, product development, community building, hiring, and operations — all while navigating retail and investor expectations — without the financial clarity or infrastructure to grow sustainably.
When funding slows down or retail demands outpace internal systems, everything starts to strain.
It’s Not Just Ami Colé
This is the kind of work I focus on with creative founders and product-based brands.
Many of them want to grow but don’t know what that growth will actually cost.
They’re trying to stay true to their mission while chasing visibility.
They’re pouring everything into the business and still not paying themselves consistently.
And they often don’t have a clear view of how their money is working for or against them.
The hard truth is, it’s not enough to have a great product and strong story. You need a financial backbone that protects your mission, your energy, and your long-term sustainability.
What Would Have Made a Difference (And How My Company Is Designed to Help)
If I had worked with a brand like Ami Colé, here’s what that support would have looked like. This is also what I now help early-stage founders set up before their growth turns into overwhelm.
1. Financial Reset Diagnostic
We’d start with a full breakdown of where money is actually going. What’s profitable? What’s draining the business? Can the current model support expansion? Before entering Sephora or scaling wholesale, this kind of insight can reveal whether the business is truly ready.
2. Cash Flow Clarity Plan
Retail growth can put a huge strain on cash. I’d map out the timing of inventory costs, marketing spend, team support, and payment delays from partners like Sephora. This forecast would show exactly how long the brand could operate at that level and whether outside funding was a necessity or a risk.
3. Pricing Strategy That Supports the Brand’s Growth
Using my pricing dashboard, I’d work through SKU-level cost structure and margin visibility. The goal would be to ensure that both DTC and wholesale channels are profitable enough to sustain growth. This is about building real-world clarity on what’s working and what needs to shift.
4. Founder Pay and Profit Structure
No founder should be the last to get paid. I’d help build a structure where the founder receives consistent income every month and where a small reserve is set aside, even while scaling. This helps avoid burnout and gives the business more breathing room.
5. Simple, Decision-Ready Dashboard
Instead of relying on delayed reports or gut checks, I’d create a live dashboard to track cash flow, margin, and growth indicators in real time. When founders can see what’s actually happening, they make better, calmer decisions.
This kind of structure doesn’t have to be complex. It just needs to be strong enough to hold the vision you’re building.
The Bigger Message
Ami Colé didn’t fall short because the product wasn’t strong or the founder wasn’t capable.
It shut down because the internal structure couldn’t carry the weight of external success.
This is what happens when brands are pushed to scale before they’re financially ready.
That’s why I do the work I do. I help founders build financial systems that bring clarity, protect their time and energy, and create room for both growth and sustainability.
Before you grow, ask yourself:
Is your business actually ready for the next level?
If not, that’s what I’m here to help you build.
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