Dave Ramsey Reveals The Business That's Most Likely To Make You Go Broke

Sat, Sep 13, 2025, 11:30 AM 3 min read

Some business ideas are better than others due to their growth prospects, profit margins, and startup costs. However, there's one business most people should avoid, especially if they don't want to go broke.

Financial personality Dave Ramsey recently revealed the one type of business that gives you the highest chance of going broke. High startup costs and low profit margins are two defining traits of the restaurant industry, the business idea that Ramsey took aim at when going on TikTok.

Don't Miss:

• The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — and you can too at just $2.90/share.

• Kevin O'Leary Loves ‘Wonderful Recurring Cash Flows' — These Small Industrial Assets Deliver Just That

After Ramsey makes his bold claim that restaurants are almost guaranteed to make you broke, the TikTok video goes to a written note from a fan who wants to open a restaurant because it's his dream. The aspiring restaurant owner has done zero research and does not have a business plan.

However, it gets worse. The husband wants to sell the family's fully paid-off house, use the proceeds to start the restaurant, and live in an apartment. He also wants his wife to continue working so they can have one steady income while he fully commits to the restaurant.

It's nice to have dreams, but you need sufficient numbers, planning, and ambition to turn a dream into a profitable business. Furthermore, some dreams are more suitable than others from a monetization standpoint. It's hard to make money with a restaurant and keep it open, but some business ideas can produce higher profits with less overhead.

Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.

Ramsey said that you need business experience before you start a restaurant, and he also suggested creating a plan. However, Ramsey went even deeper, saying that the husband should get restaurant experience before starting a restaurant.

Just because you enjoy eating at a restaurant doesn't mean you would enjoy running a restaurant. Having some creative ideas for the local restaurant that you visit often doesn't mean you know how to grow and scale your own restaurant.

Ramsey then said that restaurants have the highest rate of failure among small businesses. The deck is stacked against restaurant owners, and people who go into the industry without any awareness of how it works put themselves at a greater disadvantage.