expression
prepared for a loss; ready to operate at a deficit
Set phrase used when someone knowingly accepts a financial loss, often followed by で to describe the action taken despite the expected loss. Typically used in business or personal finance contexts.
赤字覚悟で新規事業を始めた。
We started the new business prepared to operate at a loss.
彼は赤字覚悟でその車を売った。
He sold the car at a loss, knowing he would lose money.
Compound of 赤字 (deficit, literally 'red characters') and 覚悟 (preparedness, resolution). The phrase likely emerged from business contexts where red ink traditionally indicates a loss.