Bridging the Gap Business Simulation Plan

Business and Personal Financial Simulations

1. Buying and running a business. BPS (Business Plan Simulation)

Four to five students per team are formed. Teams answer an ad "to buy a deli." Teams prepare and use a business plan with Profit and Loss statement. Rotarians serve as "consultants." Teams apply for "a loan" to bankers Bankers grant "loans" at varying terms. Teams project second year result, then present an updated plan to bankers. When time permits, Balance Sheet and Cash Flow should be used. If not they should be explained as part of an overall plan. Teams are evaluated. Diplomas and letter from Rotary District Governor are presented.

2. Personal Financial Plan program. PFP (Personal Financial Plan)

Two to three students per "family" are formed and are assumed to have graduated from High School 8 - 10 years ago. Last year's family financial report is reviewed. Rotarians are the Coordinator(s). Bankers, Accountants and Financial Planners are consultants. "Families" prepare second year budget and bank applications. "Families" apply for loan to buy a home. Problems occur, doctor's bills, insurance, education etc.. Third year personal Financial Profit and Loss statement, Balance Sheets and Cash Flow are prepared. Result: Families either break even, make or lose money. Consultants judge performance and grant loan conditions. Diplomas and letter from Rotary District Governor are presented.

3. Advanced BPS Program

Should only be done after students are familiar with above and are Comfortable with Profit and Loss, Balance Sheets and Cash Flow. Confidentiality agreement is signed. Students work in cooperation with teachers and Rotarian Consultants, evaluate local business and do research on that business. Students prepare business plan based on their evaluation and recommend possible changes to up grade of business operation and efficiency. Businesses pay all expenses in connection with research etc. Businesses pay a fee to student for future education.