A recent Los Angeles Times piece illustrated that while origin stories can provide powerful connections to consumers and help launch or sustain companies, these foundational narratives can also be scrutinized by critics or competitors who may latch onto inconsistencies or exaggerations to undermine a business. In the case highlighted by the LA Times, a Los Angeles-based cannabis company that touted itself as started by three Mexican sisters, was revealed to have fabricated its origin story, which eventually led to a boycott and the disbanding of the company.
The lesson for company owners and those ready to launch a company is to subject your origin story to the same close scrutiny that a detractor might. All companies leave a public records trail behind – records such as trademark protections and corporate filings, which can include lists of officers, or UCC filings, which can include assets – that can be used by detractors to construct an alternative narrative of ownership.
While there have been some origin story exaggerations that the public has been more forgiving of, founders would be well-advised to proceed with caution and deliberation when constructing the public facing narrative of their company’s founding.