Money & Me: 'Smart people don't sell – they leverage'

Dubai’s luxury watch market has become an unexpected arena for financial innovation, thanks to George Flo, a British-Cypriot entrepreneur who founded The Heritage Club, a high-end watch buyback service. The company allows clients to unlock immediate cash against their timepieces, ranging from Dh25,000 to Dh2.5 million, with a contractual promise to repurchase the items within 30 or 60 days. Recently, Flo found himself dealing with a surprising case: a 22-year-old client arrived with a half-million-dollar watch, desperate for liquidity after exhausting his monthly budget. Flo, who launched The Heritage Club just 10 months ago, described the situation as unusual but not unheard of. The company currently holds just over Dh20 million in client assets. Rather than taking a salary, Flo has chosen to reinvest all earnings back into the business, a decision rooted in his experience after selling his previous recruitment firm to South African bank Investec during a two-year break in Cyprus. Flo’s journey with money began in his childhood, shaped by his parents' approach to commerce. His father ran a fish and chip shop, and young Flo questioned the pricing strategy. At 13 or 14, he asked why cod and chips were priced at £3.50. His father responded that this was standard practice. When Flo pressed further, asking about costs, his father admitted he didn’t know. This sparked a realization in Flo about the importance of understanding financials, leading him to calculate his father’s mortgage debt by contacting the bank anonymously. His first job was dishwashing at his uncle’s restaurant in England, followed by a stint in telesales, where he learned the art of persuasion. After university, he entered the recruitment industry, eventually building a successful business that he later sold. Despite these achievements, Flo faced financial hurdles early on, including student debt and the struggle of finding employment after completing an international business degree. Reflecting on his financial management style, Flo admits to being somewhat impulsive. He prefers leveraging rather than saving, citing the limitations of traditional savings accounts. For instance, he notes that keeping funds in a Coutts treasury account yields only five percent annually, with no access to the capital. In contrast, he sees borrowing and refinancing as more advantageous from a commercial standpoint. Flo’s ambitions for The Heritage Club are ambitious. Initially aiming to reach Dh5 million in the first month, the company surpassed expectations, hitting Dh50 million. His next target is expanding to a second location. While he acknowledges the risks associated with such ventures, he emphasizes making decisions based on instinct and experience. As The Heritage Club continues to grow, its model of offering immediate liquidity against high-value assets presents both opportunities and challenges in the luxury goods sector. With each transaction, Flo reinforces his belief that smart financial strategies involve leveraging resources rather than simply holding onto them.