BNB's rapid growth from four to 200 employees and 30+ clients created incredible creative opportunities but also operational challenges. Looking back, what did this teach you about the relationship between creative ambition and business sustainability?
BUTTET: That's a good thesis topic! So, when I created BNB, I had just left Franck Muller, where I had already created bizarre and interesting things, like the crazy hours revolving tourbillon, things that really marked their time, because it was a turning point in watchmaking, where we started doing little crazy things, and these watches weren't necessarily made to tell the time, but to play with the mechanism, and the passage of time. I had a good time with Franck Muller, but at that time in 2004, Franck Muller and Vartan Sirmakes were making headlines because they didn't agree on the management of the company, and since they were the two shareholders, it was a fight every day. In the morning, Vartan was in my office saying, 'Mathias, let's make your brand, we have to do something together.' Then in the afternoon, Franck was telling me, 'Please don't leave, we have to keep working.' After a little while, I said, 'I can't deal with politics all day, it's not my life,' so I launched something for myself.
I started out with two associates, B&B Concept. We started from nothing at all. We had no money, we borrowed money to create the company, we had no orders, nothing at all. The first order I got was from a company in the United States that we know well now, but that no one knew back then. It was Jacob & Co. in 2004. And Jacob Arabo, I met with him, without speaking English, but communicating by doing drawings at the airport. We made the first watch for him, a tourbillon. He ordered 30 from me, and it was with this order that I went to the bank to say, 'We're starting a company, I need cash to buy machines and things like that, will you help me?' The bank said OK, and it started like that.
There were four of us at BNB as you said correctly. We were in my cellar, in my garage, in my house. So it was a true start-up, like the image of a start-up you have in your mind. And very, very quickly, but it's a stroke of luck, the market opened up, needed extravagant watchmakers, and I responded to this madness. Right away we got 30, 40 people, 60 people by the lake in Nyon, and from order to order, four years later, I asked my two associates to leave the company. They got paid out for that, and I was able to continue on my own because we were not aligned in what we thought watchmaking was supposed to be. They were very classic watchmakers who came from Patek Philippe, so you can imagine the classicism, and I wanted something else, to do what had never been done and not do what other brands had already done. And so we grew to 200 people, we had to build a factory, etc., and that was from 2006 to 2008, and then all of a sudden in 2008, the disaster.
Let's say someone turned off the lights in the United States, the global crisis. At the time I was at the head of BNB, we had made huge investments to pay for a brand new factory, a workshop with about 30 CNC machines, 200 people with monthly wages. Well, I promise you that even with imagination, you can't invent money, so every month I had to reduce the size of the company, and then I also learned to temper my dreams with reality, and the crisis was above all a crisis of cash. People, companies held onto their cash. But for me, my company ran financially on cash flow, that is, I asked for a third of the order of any complication up front, and I operated with this first third, and we received the other two thirds of the order when we delivered the watches.
So when all of a sudden it tightened and companies started to manage their cash differently, invoices were paid at 60 days, then 90, then 120 days, and when you have suppliers and banks who ask you to pay your bills and then the cash doesn't come in, there is only one solution: to lay people off, to reduce costs as much as possible. We held out until January 2010, so almost a year and a half, two years, each month by reducing. All along, and that was a bad idea, I was the main shareholder, administrator, general manager. I wore all the hats, and when, at least in Switzerland, when you wear all the hats in a company like that, well, you risk going to prison, and I didn't really want to raise my children from a prison cell, so I declared bankruptcy. And then, at the time, I had as a client, among these 30 clients you mentioned, I had Hublot, who was not the main client, but they were the only ones who continued to pay during the crisis. I got along well with Jean-Claude Biver, and he told me, 'Listen, you're not going bankrupt because your company is bad, but simply because there is a cash crisis, and we're going to take over everything, we'll buy everything from the liquidation.' Then we 'moved', because we were located in the village next door, with a team of 30 people.
So I arrived at Hublot with 30 people, 31 including me, with the machines, with about 50 patents that Hublot also bought at the time, with galvanoplastic workshops, with things that Hublot didn't have, and what was interesting is that I think it was a win-win situation. I see Jean-Claude Biver like a ray of sunshine in the middle of the darkness of bankruptcy. It was also an opportunity for him to change Hublot. Instead of being a brand that bought and resold movements, cases and things like that, all of a sudden he decided to become a manufacture, and at the same time he eliminated about 30 competitors in complications, so it was a masterstroke from Jean-Claude Biver. He was an opportunist, but in a very pleasant way, not opportunist in the bad sense, but in the good sense. He really saved us, because we found a house where we could continue what we always did in our own way. You know we had a special way of working, and we kept it at Hublot, because it was new, and Hublot became a manufacture as soon as we moved. So I declared bankruptcy in January 2010, and in late February 2010, we were actively working at Hublot, just like at BNB.
You talk about that in terms of feelings. I think no one can truly understand what's going on in the head of an entrepreneur who's poured their heart into their business, and then suddenly someone turns off the light, and then they have to fight every month to get money, when it's the thing they hate most. My job is to do research, development, novelties, and at that time, my job was to beg for money to pay salaries at the end of the month. So I was delighted, let's say, to go bankrupt, because I think it's not human to bear this for so long. In fact, I think that bankruptcy put me back in my place, that is to say, we experienced extremely strong growth initially, going from four people to 200 people, in 30 métiers, and we were a start-up of the year, etc., we got a bit of a big head, and we thought we'd made it big, and in fact, life is not like that. When it's going well, you have to make the most of it, but you have to expect it to change. It's like the weather. You go out in a swimsuit on the balcony, and then a storm comes, and that's what happened with BNB. But I have to say that being at Hublot now for 15 years, with Jean-Claude Biver at the beginning, who still gave me a lot of freedom, telling me to keep being crazy, that's what's working really well, and we continued with another adventure, with the materials, with new things, and I needed new things, and I think the team that I brought here, who came from BNB, also needed this rhythm of novelty, of proposition, of things that are a little crazy. And in fact, that's the characteristic of Hublot products today, and I'm pretty proud of that, because I think we were at the origin of it all. I don't know if I answered your question, but it's a life experience that I wish for anyone with good intentions, because while it shakes you up and hurts a little at the beginning, for example my divorce was connected to this, so all the misfortunes happen at the same time, but it makes you more humble. It's a lesson in humility, a lesson in life, and that doesn't hurt. That's it.