Global Franchise 10.3

Courting investors can be a daunting task for entrepreneurs, but as Troy Hazard, an international business leader with over 40 years of experience, explains, it’s more about strategy, clarity, and building relationships than simply asking for capital. Hazard, who has built and sold multiple companies and helped businesses in 16 countries as a consultant, offers his insights into how to win over investors. As told by | CHARLOTTE SMITH Win Investor Attention HAVE A LONG-TERMVISION One of the most important lessons Hazard emphasizes is the need for clarity. Investors are drawn to businesses with a clear vision for the future. “The businesses that succeed are those where the founders have a crystal-clear vision of what the next 10 years look like. This clarity helps not only in running the business but also in attracting investors who want to see a well-thought-out plan,” says Hazard. When founders lack clarity, they tend to operate in chaos, which can scare off potential investors. “Chaos doesn’t necessarily mean failure, but it does make businesses less efficient and creates anxiety among leaders. Investors look for those who have a steady hand on the wheel and can show a clear roadmap for growth.” BUILD RELATIONSHIPS FIRST Attracting investors isn’t about rushing into meetings with a pitch; it’s about nurturing long- term relationships. When he was preparing for the sale of Poolwerx, the world’s largest franchise pool service, Hazard and his team spent over two years getting to know potential investors. “We didn’t just look for anyone with money – we focused on those who understood our vision and were aligned with our values,” Hazard explains. “We narrowed our list from 46 potential investors down to three, based on who we thought was the right cultural and financial fit. By the time Poolwerx went to market, they had playbooked every conversation and pitch with investors, allowing them to confidently demonstrate their long-term goals. “It’s all about showing that you can mitigate risk, which makes investors feel comfortable,” Hazard adds. H O W S M A R T B R A N D S . . . “The businesses that succeed are those where the founders have a crystal-clear vision of what the next 10 years look like” KNOWYOUR EXIT STRATEGY For Hazard, one of the keys to attracting investors is to always have an exit strategy in mind. Whether you’re at the start or midpoint of your business journey, you should already have a vision of how and when you plan to exit. “From the moment I enter a business, I already knowwhat it will look like when it’s sold. It helps keep you focused, and investors appreciate that level of foresight,” says Hazard. “Without a clear exit plan, you risk being handcuffed to your business indefinitely, which isn’t appealing to potential investors.” HAVE CLARITY As an investor, there are certain traits Hazard looks for. “When we work with someone, whether it’s to be on their board, invest or consult, the first question I ask is this: ‘What do you want to look like when you grow up?’ It’s surprising howmany don’t know,” he reveals. “If they’ve not got that clarity it’s a red flag, because it means either I need to take them on that journey, I need to introduce them to that journey, or I need to not be part of that journey. I don’t need to be a nurse or parent figure in that business relationship – I need to be a mentor. And the mentor role only kicks in if your mentee is open to these concepts.” 82 GLOBAL FRANCHISE Issue 10.3 Ins ight