"The first major item I wanted to buy as a young child was a windsurfer (a sailboard), and I worked for over a year doing odd jobs to save up to Dh1,102 [$300] and buy it," said James Miller, 48, a British expat who began to earn at a young age back home in the UK. He still considers it one of his best purchases, recalling how hard he worked for it.
"I didn't get pocket money as a child. When I realised the value of money at around ten years old, I would go out where I lived and find ways of earning it myself. I would offer to wash cars, clean windows and mow lawns for neighbours and not always very well, but I think they appreciated my endeavour if nothing else."
New-found interest for banking
Although Miller studied sports science at Loughborough University in the UK, a world-renowned sports college, after having left college, he was in London, joining a global bank in their graduate development programme.
"At the time, I had little interest in banking, but the training and experience were too good to turn down at that young age. However, I quickly began to enjoy the demanding environment of investment banking, the cut and thrust of corporate deals and being at my desk at 7am and often very late into the night. It was hard work, demanding and hugely challenging, and I loved this environment."
After 20 years and becoming a regional chief executive officer (CEO) of a global bank, when he turned 40 and he felt he needed a new career challenge.
Revives passion for sports and fitness
Miller was always passionate about sports and fitness, so starting a new business in an area he was already enthusiastic about felt like the right decision.
He launched Embody fitness in 2017 in Dubai, offering a new fitness model to help clients achieve life-changing results in a few months.
The business was self-funded by Miller and his wife, from their savings over the last 20 years of working.
"Every time we launch a new gym facility, we have to consider the risk of failure as it could wipe pretty much everything we have, and at early 50 years of age and with three young children, that is a huge decision to make. But that is the risk you often face as an entrepreneur, and it also drives you to get up every day to succeed."
What were your main expenses in setting up a fitness facility in Dubai?
Miller stated the main cost for establishing a new gym facility is the upfront ‘fit-out’ capex, which by comparison is high versus other businesses that may operate from a similar office or retail space.
"Because of the high initial capex, we have to consider a more extended lease period of around ten years to provide enough security to deliver the required return on investment (ROI) for the business investment. Areas such as MEP (mechanical, electrical and plumbing) are much higher than a standard business, and our equipment is mainly made for us on a bespoke basis to deliver an Olympic-level training experience for our clients.
"We also provide additional services such as ice baths, infra-red saunas, sports therapy rooms, and health cafes. Hence, the effective investment cost is around 90 per cent related to investment capex and about 10 per cent for recruitment, training and marketing,"
Miller shares four tips from his entrepreneurship journey
Tip #1: Have proper financial forecasting in business.
Miller stated that understanding cash flow is critical in business, which mainly is vital for SMEs (small and medium-sized enterprises). Most companies fail because they run out of cash, not because they are not profitable but don't have proper financial forecasting, he explained.
"I undertake detailed financial forecasting and run multiple scenarios repeatedly until I feel my gut and my head tell me this financial risk profile feels right. And always have a war chest (a fund accumulated to finance a crisis)…. you may need it, and it may be the difference between surviving or not."
For example, at the start of the recent health crisis, Miller’s gym was one of the businesses to be shut down, both in the UAE and the UK as soon as the pandemic hit.
How did you survive the pandemic?
“When the pandemic started in early 2020, it hit us very hard, and our businesses were closed down overnight both in Dubai and London. Suddenly we had zero income and 40 staff working for us, and large rent cheques to continue to pay on premises we could not operate from," he revealed.
"We would have gone bust pretty quickly with zero income overnight and pretty much the same costs without a prudent approach to cash flow and liquidity.”
However, Miller makes it a habit to always put cash aside when the business is above water to protect against unforeseen circumstances as catastrophic as the pandemic.
"Liquidity alone didn't save us, but we would have had no chance of surviving without it. This gave us the breathing room to regroup and make a plan, and soon you can start to see things as an opportunity and not just a crisis."
I firmly believe you are only the average of the five people you spend most of your time with, so make sure you are with the right people
Tip #2: Seek assistance from a trustworthy person to help you manage your financial goals.
Despite working in investment banking for 20 years, Miller considers himself not best positioned to manage and decide on his savings plans. "I focus on two things: first, understanding my financial goals and second, finding the people I can trust to manage this for me."
He said his mistakes were that he was probably too trusting and not sceptical enough at his younger age. "I now ask myself much harder questions. I am prepared to walk away from any investment, at any stage, if it just doesn't feel right at any stage."
Given the current global situation with high energy and overall living costs, inflation at nearly double digits in many developed countries and an ongoing war crisis in key parts of the world, Miller rebalanced his investment portfolio from 90 per cent equities to 75 per cent cash and bonds.
“I expect interest rates to continue to rise to curb inflation, and this could further impact stock markets throughout 2022, so I am currently taking a prudent investment approach,” he added.
How do you deal with money challenges when it comes to business?
Miller has lived in Dubai for nine years now and owns his family home here. “With three children and owning and running a business here, this is really home for us.” He also admitted that the situation was initially very scary because you had no control or foresight on when things might change.
"Managing during tough times requires good discipline. Too many businesses fail because they have not planned for different scenarios and also for unplanned downsides. If you have enough liquidity available, this buys you precious time to manage through these crises."
Tip #3: Know what your greatest and most important assets are as a business.
Attracting, developing and retaining the best talent is one of the key priorities, Miller shared, and added that if you can do this in the hard times, it will pay dividends in the good times.
"Roll forward two years, and we have now exited our business in London and doubling down and expanding our business here in the UAE. I think this is a testament to how countries have sought to manage the crisis, and the real proof is how individuals and businesses have been able to respond."
He felt a lot more confident in investing in their business in this region over the medium term now and will open their second facility in Dubai this summer.
I think in great-rounded teams versus great-rounded individuals, the people in our business and their core values and strengths are our business's most valuable asset
Tip #4: How you deal with things that don't work as planned determines your overall success.
Miller said setting up any business requires a lot of planning, hard work, good decision making and adaptability. He added that there will always be challenges you have never faced, and you need to be ready to embrace this rollercoaster environment and go with it.
"You will never get everything right, but dealing with things that don't go as planned is more critical to overall success. One thing that has helped me greatly is continuing to undertake private executive coaching. Being an owner of a new and small business can be lonely at times, and I see this coaching as an investment in me and everyone around me."
Miller follows a strengths-based coaching philosophy which, in a nutshell, focuses on the top five strengths as an individual and how I can you bring the best attributes of those strengths to your business and those around you every day.
"I firmly believe you are only the average of the five people you spend most of your time with, so make sure you are with the right people. I think in great-rounded teams versus great-rounded individuals, the people in our business and their core values and strengths are our business's most valuable asset," he said.
