We are told that corporate jobs will always be there (banking, consulting, etc). But isn't there a risk of pigeonholing yourself as a "startup kid" if you start a business right after undergrad?

The only danger to getting a corporate job after owning your own business is getting used to working for someone else. The advantages of running your own business first:  You understand what it means to "own" a project.  No-one is there to pick up the slack for you.  No-one's going to remind you do things.  Working with such a high degree of autonomy means you get good at getting shit done. The other downside, if your business doesn't scale - you won't learn to work in a large matrix organization, which is a skillset in and of itself.  It's not hard, it's just networking internally, but it's definitely a tangible thing that I've seen recruiters fishing for.

From my job search experience, and current job, I can say that there are many entrepreneurial, innovative "corporate" jobs out there. Companies like these are interested in candidates with startup experience for open positions because it shows a certain drive, knowledge base, and interest area. For companies like these, it can be a bonus that someone started a business out of undergrad. Your Kraft, P&G, and E&Y type companies may not be as excited about it but to counter that you can make sure that you are documenting what tasks/projects/jobs you do while starting up your business. If the experience is relevant (which it often is), even if you fail, it will boost your resume...which reminds me, even failure during startup can be a good thing-knowledge of failure and being able to show you learned from failure is a huge plus to many hiring managers. I would encourage you to pursue any well-vetted start up opportunity you may have if the only reason you have not to is you're afraid you won't be able to find a corporate job later. There are good innovative companies out there looking for young, entrepreneurial professionals...and more and more the big firms respect the experience gained from doing it yourself. Don't be afraid to pursue your interest areas, your genuine interest in what you do is your best differentiator from everyone else out there. Good luck!

No, because if you make it, you can be hugely rich. But more to the point, a good employer will see that the "education" involved in running your own business will make you a much better and more knowledgeable employee. A bad employer will see it as a threat, to them.  You don't want to work for them anyway.

I started my first business (not a real company, but a business nonetheless) at 12 and my first company I started at 15. It broke even by my 16th birthday. My experience may very well be isolated and not representative, but I'll share it anyway. I've never been labelled a "startup kid" though. I've had work in companies where my vertical progress through the company ranks was being slowed down on purpose. My boss was also a teen entrepreneur at one point, and in fact used to work for his largest competitor. He moved up the ranks, and - having learnt what he needed to about the industry and the business - separated and started his own business, competing directly with his old boss. He probably didn't want me doing the same and undercutting him the way he did his old boss.

There are a few different ways of looking at this: (1) You have a "change the world mentality" and believe always that what you do will somehow or someday be larger than life-- with the risk that you stay the small guy with big dreams forever. If you are unhappy with this-- you are better off in a bigger more significanrt organization with a bigger brand and where you can earn/provide better for your family+loved ones and where you have a definite and set career path. Also see my answer to below for more on this point- and also other answers which touch upon the underlying issues implied by this question: (2) You need people who are very much "in demand" in the market and you are in a rapidly changing knowledge centric industry (eg: software or electronics)- then it makes sense to work atleast some time with people more experienced and maybe better/more competent than you and see how they think and how corporations manage them. THis is probably the reason Zuckerberg interned in the silicon valley even after he had founded facebook and gained significant traction. This is also the trait I see many Indian entrepreneurs lacking- because they try to dominate and command+control experienced and better people- without trying to think how the industry/the world  handles such people and such situations. (3) YOu want some sense of security-- lets say you are in love and also have aging parents want to ensure you can provide for your wife and family even if your startup doesnt work. This never hurts and it always helps- because it helps you gain experience and skills which are valuable not just in the startup world but also in the Industry. Moreover you can learn, get mentored and experiment without betting the whole existence on the result of your experiments-- and have mentors who care and genuinely support you as you work in a Industry. Just my thoughts as a entrepreneur... hope this helps...