The biggest risk of starting your own business often includes the potential of going bankrupt trying to meet the business’s costs. This encompasses not only the loss of the initial investment but also ongoing operational expenses that may not be covered if the business does not generate enough revenue. Bankruptcy can damage personal finances and credit, making it difficult to recover and potentially putting personal assets at risk, depending on the structure of the business and personal guarantees made. The other risks mentioned, such as damaging your reputation, losing personal property to investors, or missing out on higher-paying job opportunities, are also relevant but may not carry the same immediate and severe financial implications as bankruptcy does.
