Your business fails completely. You emerge with the the most valuable of skills on display – bravery – which is transferable to new ventures and appreciated by other individuals trying to do the same as you. Your new skills enable you to switch careers effectively and become an effective leader who utilises their entrepreneurial spirit to affect other flourishing businesses.
I don’t think people fully appreciate this. They think that if they found their own startup/business and fail, then no employer will want to hire them.
That’s not true for smart hiring managers. The majority of startups fail. There’s no shame in failing, yet learning and growing. The lessons learned are invaluable. They will appreciate that you were ambitious, motivated, and took the initiative to create something you believed in.
Dumb hiring managers may not understand that, but you wouldn’t want to work for them anyway.