Jason Pleym founded Two Rivers Specialty Meats in 2007. He and his wife Margot had quit their big-city jobs and were living in a school bus for the summer by the Kicking Horse River in Golden, B.C., while they decided on their next move. By the fall they had come up with Two River Specialty Meats. Seven years later, Pleym said his biggest learning curve has been understanding and managing cash flow.
“For us starting out, we didn’t have the cash, nor was it top of mind to really understand it.”
But Pleym said he now knows that managing and understanding cash flow are critical to business survival, especially when dealing with receivables.
“The standard for business these days is that receivables are long – 30 days would be considered tight; 60, 90 and 120 days are not uncommon. When you have money that far out … then you have to replace product to keep selling, something has got to give.”
Pleym found that when cash flow dries up a business can quickly find itself in serious trouble.
“We have been in a situation where cash flow was extremely tight, to the point we were cut off by our suppliers,” he said. “We needed to get things paid in order to get more products. At that point you are in a deadlock because I can’t sell any product because I don’t have it – and I don’t have any money to buy any more, and I don’t have money coming because receivables just aren’t being paid.”
To rectify the situation, Pleym began searching for a partner and investor. He got lucky. Pleym teamed up with a group of people who believed in his business.
“Because of their background and other businesses, they were able to go and secure credit for us to continue to do business,” he said. “There is no way we as a small business can just walk in to a bank and secure a significant line of credit to operate your cash flow on. “
Now Pleym has since built a new shop, and his business is steadily growing.
“I look back at the realization that we wouldn’t have gotten anywhere close to where we are without our partnership and financial partners.”
