Four weeks before the launch of her Ultimo bra range, entrepreneur Michelle Mone ran out of cash. She’d maxed out all her credit cards, remortgaged her house and spent every penny of her redundancy cheque. And it still wasn’t enough.
Scotswoman Mone set up MJM International in November 1996 and spent the best part of three years on R&D.
“The retail sector is seriously competitive,” she says. “You can buy a bra for the price of a sandwich these days. I had zero experience, so it was crucial to get out there and develop contacts. I flew to China every six weeks and spent more time on planes than I did in my own bed.”
The bills mounted up – and almost buried her. “I was just one month off launching the range in London’s Selfridges. But I was £300,000 in debt.”
Thankfully, Sir Tom Hunter, a fellow Scottish entrepreneur, stepped in and bought a 20 per cent stake. “If he hadn’t invested in the business, we’d have gone under.”
A few days later, Mone had her third baby. “I went into labour in the boardroom and was back in the office the next day. There wasn’t any time to lose.”
Mone launched Ultimo in August 1999. To stir up interest, she’d sent out more than 500 free samples to celebrity stylists, targeting everyone from the cast of Corrie to Hollywood movie stars.
“It’s expensive and it’s a huge risk – but the gamble paid off. Julia Roberts wore an Ultimo bra in the film Erin Brockovich and that sparked a media frenzy.”
More than 50 photographers attended the London launch. Six weeks of stock sold out within 24 hours.
Mone is now on the cusp of opening her own chain of Ultimo stores across the country, and her business is rumoured to carry a £60m price tag.
Looks like she’s not counting the pennies anymore.
Read the full interview with Michelle Mone in the November edition of Real Business.