Publicly traded companies have boards of directors primarily comprised of outsiders. But how many owners of family or other closely held businesses think about, much less have, outside directors for their businesses? The presence of outside directors in a family-held business serves several purposes, with the most important being to add value and perspective for management. Creating a board of directors comprised of outsiders provides the entrepreneur or CEO with a peer group with whom she can discuss the problems and issues of the business. . . .

Source: www.grbj.com