Ten Great Reasons to Have a Board in a Family Business:

1.  Boards buffer business decisions from family exigencies.

2.  Boards engender a greater sense of fairness and objectivity among family stakeholders.

3.  Transitions of all types will be better planned, less emotional and smoother.

4.  Outsiders, including bankers, potential investors, suppliers, and even some (usually large) customers view a board as a significant plus for their financial interests in the company.

5.  The addition of outside-the-family directors will significantly improve the breadth and quality of the input and the objectivity of strategic decisions.

6.  Boards inherently add more structure to the firm's decision-making process--board meetings are scheduled well in advance with published agendas, advanced mailings, and minutes.

7.  Boards provide more candid appraisals of executive performance, and more ease and objectivity in equating performance evaluations with pay increases.

8.  A high performing board lubricates family communication and multiplies the potential for mutual family trust. 

9.  Comparative analysis clearly shows family firms with boards outperform in profitability and longevity those without boards.

10.  While not inexpensive, boards typically provide broader input, better policy and strategy, at a lower cost than the hiring of outside advisors.

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