Dubai: When Victor Zaglumin, a 41-year-old Russian expat now based in the UAE, walked away from a secure, high-paying job in his early 20s, to pursue entrepreneurship, little did he know he would be running a profitable commercial real estate brokerage on a global scale.
In the depths of the 2007-2008 global economic crisis, Zaglumin, co-founded a brokerage, Bright Rich | CORFAC International, in Saint Petersburg, Russia, alongside his former colleague. Their modest beginnings included renting a small 80 sq. ft. office in a rundown building with no heating or air conditioning.
“We had only a few months to secure paying clients and move to a better office,” Zaglumin recalls. “The thought of freezing in winter kept us focused and working day and night.” However, despite the challenges, their business gained traction.
A modest investment of about Dh37,000 from their savings covered initial costs such as legal fees, office rent, furniture, and equipment. Their first deals involved leasing office spaces during a market downturn when property owners were eager for tenants.
Humble beginnings
Serving small and medium-sized businesses, a niche overlooked by larger competitors, they landed a 10,000 sq. ft. office deal within three months. The resulting commission funded further growth, allowing them to move into a better office and hire staff.
Over the years, Zaglumin’s brokerage flourished, completing transactions across a portfolio exceeding 21.5 million sq. ft. and expanding to four international offices, including a flagship location in Dubai in 2022. “The company’s business model achieves a profit margin of 40 to 45% depending on an office,” he explained.
Opening the Dubai office initially included expenses, exceeding Dh1.5 million. This covered legal fees, employee visas, office setup, and the development of a proprietary system with a machine-learning-based analytical platform.
This has paid off by streamlining client matching, saving hours of work, and maintaining profit margins above industry averages. “Our Dubai office reached the break-even point quickly and is on track to meet the 40% profit margin target,” Zaglumin shares. “In the first year, we had 150 clients. Today, we serve over 1,100 clients.”
Vision for expansion starts young
Zaglumin’s educational background – which include degrees in information technology and municipal management, an MBA, and certifications in property management and investment – and his work experience played pivotal roles in his success, he notes. Before venturing into entrepreneurship, Zaglumin worked as a regional sales director for a logistics company, where he recognised untapped opportunities in industrial and warehouse property markets. He has therefore invested heavily in his team’s professional development, ensuring many of his employees achieve similar qualifications.
Managing personal, corporate finances
Zaglumin’s financial acumen stems from lessons learned in childhood. His parents taught him the value of saving, budgeting, and setting aside funds for unforeseen expenses. These principles have guided his approach to both personal and corporate finances. Here are his four core money rules:
Rule #1: Plan for business scalability, stay lean
“From day one, set aside 10-20% of revenue for future growth. For the Dubai office, we’ve reinvested nearly 100% to ensure sustainable expansion,” he added. “Keep spending under control and let profits grow before scaling up. This approach prevented negative cash flow in our early days.”
Rule #2: Invest early, focus on income growth
“A small investment today is better than none. Diversify between stocks, bonds, and real estate, and let compound interest work its magic,” notes Zaglumin. “While budgeting is important, prioritising income growth yields greater returns. Understand opportunity costs to make smarter financial decisions.”
Personal investment strategy?
50%: Scaling the business. 20%: High-liquidity real estate (commercial and residential). 20%: Bonds and bank deposits. 10%: Stocks, focusing on blue-chip companies and dividend aristocrats.
Zaglumin is busy building a legacy: Will you too?
Beyond business, Zaglumin enjoys teaching financial literacy to his nieces and nephews. He uses relatable examples to explain concepts like investment and opportunity cost.
“Kids often prioritise instant gratification,” he notes. “I show them how long-term investments, like a Lego set over a toy robot, can provide greater value by fostering skills they’ll use throughout life.”
Final thoughts? Zaglumin’s journey from a freezing, tiny office to leading an international real estate brokerage is a testament to the power of resilience, smart financial strategies, and an unwavering commitment to growth. His story inspires entrepreneurs to take calculated risks and build success, even during the toughest times.
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