[ 2011-04-18 ]

Should Entrepreneurs watch their backs?
When starting a business these days, it may be
wise to document the role played by everyone who
helped you get it off the ground. Should your
company become a raging success, chances are some
of those folks will try to seize a piece of your
fortune in court.

Perhaps Facebook co-founder Mark Zuckerberg wishes
he’d done this. Cameron and Tyler Winklevoss
sued him, resulting in a 2008 settlement costing
him $20 million in cash and $45 million in
Facebook stock. Recently, the twins tried but
failed to back out of the settlement, claiming
they were duped about the valuation of Facebook.
(Read “Winklevoss Twins Can’t Back Out of Deal
on Facebook, Judge Says.”)

And on Monday, an amended complaint was filed
against Mark Zuckerberg from a New York man who
last year said he was entitled to a large stake of
Facebook. The complaint includes excerpts of
emails between the plaintiff Paul Ceglia and Mr.
Zuckerberg. (Read “Ceglia Presses Facebook Case,
Adds Emails.”

Of course, keeping track of the relationships you
have with friends, family, classmates or anyone
else who may be willing to lend you a hand while
you build a business would likely be difficult.
Entrepreneurs have a lot on their plates, plus
copious recordkeeping could prevent those
relationships from being of much value.

But given the potential consequences, being able
to prove you were truly the brains behind what may
one day become a booming enterprise could end up
worthwhile.

Readers, should entrepreneurs document their
relationships with the people that help them get
their companies off the ground? Or is their time
and energy better spent just on growing their
businesses?

Source - Wal Street Journal

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