From catwalk to cash flow

Caprice Bourret, 38, is a model, actress and businesswoman.

After growing up in Southern California and modelling in New York for several years, she moved to the UK at the age of 23 – and became one of the most photographed women in the world, appearing on more than 350 magazine covers.

In 2000, she signed a deal with Debenhams for Caprice Lingerie and in 2006, she launched By Caprice lingerie with £263,000 of her own money. Her products appear in Littlewoods, Asos, Next, Figleaves, Lipsy, Debenhams and 50 independents.

Caprice, who is single, lives in west London.

Did you think you would get to where you are?
In my teens, oh goodness no, I did not think that this would be my journey. I wanted to be governor of California! I always had very high expectations of myself and strived for big things. My parents were both entrepreneurs. But I never thought I would be making underwear for women and absolutely loving it, especially during one of the hardest economic times in my lifetime.

When you realised you had made your first million were you tempted to slow down?
I made my first million pounds at the age of 26. As a little girl, I said I would retire when I had made
my first million. The reality was different.
When I did make it, I wanted to make another million, and another, and another after that.

What is the secret of your success?

With modelling, it is obvious. You must be professional, you have to make the clothes look good, and you have to look after yourself. Business is a totally different ballgame. I would advise people not to be greedy. Don’t go cheap on your employees. Hire the best and you will get the best results. I have a fantastic group of people working with me. As the owner of my business, I have learnt about every aspect of it. I facilitate everything myself, because nobody has the same passion as I do when I spend my own money. I even know how to do my own cash flow.

Have you had time for personal financial planning?

I have a full-time accountant in my office who is very pedantic and a great help. However, my mortgage, insurances, cost prices for my products and everything else I negotiate myself. I don’t leave it to somebody else. No way.

What is your basic business strategy?

It has changed in the past two years. Recently, it has been about very tight buys, hard negotiations. Primarily, I buy my products in dollars and I get paid in sterling so, right now, I’m doing a lot of forward buys, and hedging a little, because sterling is just very unpredictable.

Do you want to carry on till you drop?

Yes, because I love what I do. It has made me who I am. Nothing is better than waking up in the morning and being excited to go into work. The second my grandmother stopped working, at 73, I think she lost her zest for life.

What was your most prudent investment?

I have been interested in property since my mid-20s, when I invested in government repossessions both here and in the US. After careful research, I would select a place, hold on to it for two years – so I did not have to pay capital gains tax – then I would fix it up and flip it. I made a lot of money doing this, sometimes doubling my original outlay.

Now, I have just about got rid of them because, when the recession hit, I started losing money. One of my properties in Florida that I had bought for $1m devalued by $450,000.

Have you made any pension provision?

I allocated money towards my pension up until five years ago. Then I stopped. There was quite a substantial amount of money in my fund and, given that I can’t access it until my 50s, I thought it was ridiculous. Also, I had put some of this money into risky funds so I could collect more interest, but I lost quite a bit, a fortune. Nobody needs that kind of stress. I have left the remainder in low-risk schemes with low interest.

What is your commitment to charity?

I support ChildLine, Tikva, an orphanage in the Ukraine, and Great Ormond Street Hospital. There is also a fantastic organisation, Spirituality for Kids, that allows UK schools to teach topics such as self-improvement and how to deal with violence.

Do you allow yourself the odd indulgence?

In my 20s, I would go out and think nothing of buying myself a new house, a new car or going on shopping sprees. I was a bit frivolous. Now, my indulgence would be to go on a meditation retreat. I have had time away like this in Peru and India.

Have you taken steps to pass on your wealth?

I have left everything to my family. I think charity begins with your family and you take it from there.

What is your money-saving tip?

Spend responsibly and make your money work for you, because the economy might not improve for another four or five years. I have started by buying a Lexus Hybrid 450 SE-1 instead of a Porsche.