Financial risks of business start-up: what are they ?

I need to write an essay on "Financial Risks of a Business Start-Up" in the coming days. For someone who doesnt deal with the financial side of things very often, this is quite a challenge....

The main risks I can think of are:

• cashflow/liquidity problems
• wrong assumptions of sales, costs, etc

and I can write a bit on those.

Can anybody help me out with a few more ?

- Not doing accounts and ending up with huge tax bills.
- Spending the VAT money.
- Applying for Enterprise Ireland grants (underestimating the red tape and going broke before (/if) getting the grant)
- Over spending on stuff - like 'bad' advertising.
- Renting out huge offices and employing people too quickly, or needlessly.

Choosing the wrong business structure and having personal assets at risk

Leghorn very true, amusing and - very very experienced answer!!!!!