Entrepreneurs are among the most creative people on earth. Perhaps it is their genius for seeing things that others cannot see and their ability to plan that sets them apart. Whatever it is, many take advantage of their long-range planning abilities to plan their retirement in their early working years.

Many people fail to realize that the only cash that is needed is the amount to pay the bills due today. More than that amount is a surplus, and less than that means a late payment charge or interest on borrowed money. The most successful entrepreneurs are those who have mastered the art of planning cash flow.

Any new business must acquire fixed assets. Most entrepreneurs will need to finance buildings, equipment and inventories before a dime of profit is earned. Therefore, in planning cash flow, management must consider current liabilities and expenses. These two items require cash flow from income or short term loans every year.

Savings accounts or money market accounts may be set up so that cash is readily available to avoid short-term borrowing. Business credit cards should be used when total debt is paid by the due date.

Technology Solves Cash Flow

Entrepreneurs realize that large investments can be reduced by using the Internet to sell their products. By creating a free website, management can concentrate on advertising and supply chain management. Planning cash flow is reduced to projected sales, advertising and inventory. The desired profit margin and inventory items should be evaluated periodically to determine that specific goals are being met. Inventory items that are not selling should be replaced with items that have a faster turnover. Cash flow efficiency depends on inventory turnovers.

Constant Expansion

Businesses cannot remain stagnant. New products are being created and marketed every day. Methods of marketing are constantly changing, and entrepreneurs who desire to have a secure retirement must constantly grow with new markets.

In addition, entrepreneurs remain alert to the opportunities of outsourcing phases of their businesses. They are aware of data centers, advertisers and other specialists that have resources and equipment to perform tasks that may be a burden to individual businesses. Good entrepreneurs search for ways to get the best return on their investments.

Retirement Years

The most successful entrepreneurs are the ones who have managed cash flow in both their businesses and personal finances. They have managed their cash by investing their surplus cash and imagining their borrowing to a minimum. What shoaled they do with their retirement years?

If the business is prosperous, entrepreneurs should consider becoming absentee owners and letting the employees run the business. This is especially true if the entrepreneur loves his or her work. The busy employer may not like an idle lifestyle, and an occasional visit to the business will generate a feeling of worth.

On the other hand, if the entrepreneur is suffering from burnout, he or she should sell the business, invest the proceeds in a safe investment, and enjoy life.