o On-line computer prospecting and qualification (DIALOG, D&B,etc.)

o Market surveys

o Research & development

LOCATION

Business will be operated on-line,and home based.

This location is desirable because:

o after hours work is necessary

o The Internet has the necessary communications to operate this business.

and achieve excellent management monitoring.

MANUFACTURING PLAN

GDK has an automated and manual manufacturing process.Factory to be used will be

located near electronic parts warehouse.Six systems have been built to specifications

We do not anticipate generating any toxic materials at this time for

these products. However, we will be closely monitoring all production to

determine if any hazardous materials are being generated. We have

contracted with an environmental engineering company to advise us on

any possible problems as well as solutions including legal disposal of all hazardous wastes.

We anticipate no capital outlays for this plan except for serial numbering

equipment.Outsourcing Plan p.36

RESEARCH & DEVELOPMENT

We have already spent a considerable amount of time in improving exterior functions and

researching and developing the GDKss614. We have a very well documented schematic and a

simple laboratory equipped with the basic research equipment we need.

We have thus far been able to discover lighter materials and several cost

cutting manufacturing methods. The largest achievements are a foam insulator creating solid state,Knowledge fault circuit interrupter,and

coded connections and in box assembly.

Presently our research is being supervised by our FOUNDER

Gerald D.Krug. He will continue in this capacity with Lawrence Labs.

Having been the researcher involved with all our activities to this point,

he is well qualified to continue our research efforts.

Our next research project will center around (P.N.G.V.).

We have been investigating several potential government

(both state and federal) funding sources for this research.

The possibility of automobile manufactures pre-wiring new cars

for future installation is being researched.

HISTORICAL FINANCIAL DATA

Income Statement-any income is profit since start-up is paid for

Balance Sheet-GDK organization worth \$250,000 before capitalization.

Asset Worksheet-see p.29

Ratio Analysis-37% of \$159.95 goes to expenses after mfg.costs.

Financial Standards-GDK does not undercut alarm industry pricing.

We have not included financial standards as compiled by

Dunn & Bradstreet and Robert Morris Associates.

The GDK Dunns Number is;96-879-4859

PROFORMA FINANCIAL DATA

Gerald Daniel Krug
Business Income Statement 
Years Ended December 31, 2005, 2004, and 2003 
  2005 2004 2003
Sales $ X $ X $ X 
(Sales returns and allowances)  ($ X) ($ X) ($ X) 
Net sales $ X $ X $ X 
Cost of goods sold 
Beginning inventory $ X $ X $ X 
Cost of goods purchased $ X $ X $ X 
(Ending inventory) ($ X) ($ X) ($ X) 
Cost of goods sold $ X $ X $ X 
Gross profit $ X $ X $ X 
Expenses 
Selling expense  ($ X) ($ X) ($ X) 
General and administrative expense ($ X) ($ X) ($ X) 
Total operating expenses $ X $ X $ X 
Income from operations  $ X $ X $ X 
Interest expense $ X $ X $ X 
Pretax income $ X $ X $ X 
Income taxes ($ X) ($ X) ($ X) 
Net income ($ X) ($ X) ($ X) 

Proforma Cash Flow Analysis

Assumptions:For Planning only

Cash Receipts: Percentages as indicated.

Rent: Building rental at \$12/square foot.

Utilities: Water, gas, sewer, trash, electric

Telephone: Local, long distance and cellular

Salaries: Executives.

Payroll: Hourly, non executive

Withholding: Figured at XX %.

Inventory:

Freight-In:

Office Supplies:

Postage:

Advertising: Trade, magazine, direct mail, etc.

Professionals:

Commissions: Figured at 10%.

Insurance:

Travel & Entertainment:

Research: [Explanation]

Miscellaneous:

State Taxes: XX%

Federal Taxes: XX%

If non-profit status 501 c3 see p.37

Terms to customers: 2/10, n/30 (only qualified accounts).

Terms from suppliers: Suppliers offers 3% cash discount.

Sales Forecast

Unit sales have been forecast at the following growth rates:

Year 1 Year 2 Year 3

[Product/Service] 1: 2000 24,000 8,000,000

Cash Flow Variables:see p.28.5

We project that we will be able to generate sufficient

capital from operations to meet our initial needs after the D.P.O.

infusion of \$507,776. However, our projections are in industries

that have never been fully addressed and are based upon

present real buying conditions and our own experience.

Should sales not be up to projections, adjustments will be made

in ordering and long term commitments decreased or postponed,

and new markets will be worked by sales staff.

Assumptions;All start-up costs paid.Each sale is profitable.

Returns, discounts:

We are offering a range of quantity

discounts, plus an early payment discount to those extended credit.

Average is estimated to be 5%.Opened returns will be re-manufactured as re-furbished.

Cost of goods sold:37%

Expenses: 10% Totals from Cash Flow Analysis spreadsheets.

Freight: Paid by customers.

Risks & Variables:see minimize risk p.32

GDK sees a risk to sales if the information to the public continues to

down grade electronic security systems.

Proforma Balance Sheet

Cost Control

Our books will initially be maintained manually. [My

Company] seeks at a future point to use a computerized accounting

package to monitor our financial performance. This information

will be compiled at the end of each month for preparation of

financial statements. Each month these statements will be reviewed

against our proforma statements and appropriate action taken to

adjust costs or our budget. If we find that we are continually

over budget, our first step will be to reevaluate our markup on

[Product/Service]s and then to recheck our costs to make certain

that we are obtaining the best possible prices.

Ratio Analysis

Financial Standards

Breakeven Point

The following chart shows our breakeven point:

Profit Revenue Fixed Costs Variable Costs

\$36,500 $53,500 $53.00 per $34.00 per

It is intended that GDK Electronics will breakeven by selling 500 units.

to pay loan of \$33,000.(see Proforma 17-18)

EFFECTS OF LOAN OR INVESTMENT

1.Tap employees holdings in 401(k) to buy stock in GDK via Employee Stock Ownership

Plan(ESOP).Greg K.Brown ESOP specialist in Chicago law firm

Oppenheimer, Wolff & Donnelley.

money invested in GDK will be used for the

following purposes;if needed and agreed upon by investors

o Working capital - (\$33,000)from interest from 507,776 invested.

o Start-up costs - legal fees, filing fees

o Inventory - raw materials - Delivery logistics - internet

o Initial office expenses, lease deposits, phone

o Trade clearing

o Investments - "Investornet news"

o To increase net worth of all concerned.

o Create relationships with vendors and suppliers

o Negotiate investor exit plans - I.P.O. - Aquisition - Junk bonds

These outlays will enable us to operate at a level that will allow

us to meet our conservative sales goals for the first year. This will also

allow us to outright purchase these items rather than finance or lease them.

________________________________________________________

Additional information:

Prospectus format

Patents

Related News

Business Plan (details)

GDK History (continued)

Proforma

Business Plan (executed)

Company Description

Vision Statement

Auto Anti-Carjacking and Home Security Statistics

GDK Inventory Program

GDK Serial Number Program - stock certificate - invoice#'s - corp.seal

GDK receipt

GDK Interactive Business Plan (floppy disk)

GDK fax,Internet html,Lycos Listed

GDK 22 other uses...***Propriarity only***see p.27

Human Resources:skill,time requirements,2700 daily 8hrs=8,000,000

help wanted communications

compensation

employees,Pay for training and are hired

Manufacturing:System building instructions - re-manufacturing

employee non-disclosure

parts,inv.& serial num.programs - invoice is also serial number

technical writings-install instructions

outsourcing,extra capacity - gets loan to start building systems

warranty repairs - 30 day money back guarantee,22% restock charge

Marketing:box,mailers,brochures,cards,stationary,ect.

Internet and "The Partyline Show"

business to business

packaging and info.packs - window painting- posters

independent install Companies & New car dealers

T.V. shopping

global retail buyers - distributors - independent contractors

goverment contracts

car electronics warehouse - GDK shopping club - boughtup.com

Sales:1st invoices# KTI 738475 - use new word for each new rep

delivery - re-seller # required - over night mail

structures/closing procedure

technical support-installation-returns - refurbished 22% below wholesale

costs - commissions bid for 5-8%

trade shows - stores not stocked - wholesale

incentive for new car buyers - optional equiptment - dealer item

door to door,telemarket,ads,ect.

Investments:supplier stock purchases - buy stock of

intercompany re-investment (ESOP)

mergers and aquisitions

value engineering

global consultants - Investornet news

pac special interest legislation

Founder stock offering - D.P.O.-I.P.O-Investment banker,underwriter,dutch auction

Training:CEO,management team,lawyers

sales - plans for reps that call on car alarm stores

builders - if not outsourced are home based

network downloads to mirror sites - local lans

Company appraisers

public relations reps.

New Products:new idea submissions to GDK

patent searches so GDK can improve existing patents

R&D

test marketing

planning

funding,repayment,break even,human investables finder.

Business:insurance

incorporation

patents and trademarks

state licenses

computer programming

scheduled meetings

environmentalists

crisis management

asset protection

S.E.C. filing - A.I.M. filing

press releases

company issued pre approved charge card

dunn & bradstreet number

cage code - naics - sic code - UPC -

DEC. 12, 1995

Summary:

Please keep in mind that the writers of this Plan have

recorded a learning curve that contains this Businesses

most minute details and this Business Plan cannot reveal

everything its founders know for proprietary reasons but

be assured this is a lifetime work that has shown always

to have a life of its own.

Present Status of GDK Electronics:

GDK has no debts from it's accrued intellectual property

and has created a paperless investor Prospectus by

putting it on the Internet.

GDK has contacted the Big three auto makers and related

industry leaders about it's products by Fax which also

cuts costs.The base of the business is financially secure

which keeps all GDK advertising current.

Strategic Opportunities:

Mergers will occur once the Company goes public and

patent licenses will be sought for putting together other

technologies with GDK.

Company Thrust:

To use electronics to end crime and heal the environment.

Business Strategies:

GDK uses resourceful communication and real world

engineering to move ahead.GDK priorities are to use the

least resources to educate the public of its needs and then

to end those needs by GDK created solutions.

Resource Requirements:

Currently GDK has no need of extra resources for keeping

the business ready to produce its products.Once GDK gets

a large enough order then resources may be required to

keep GDK able to do increasing volumes of sales.

Expected Benefits:

Based on the Company Thrust the benefits are obvious

and profound.To the founders of the business the benefits

are already gained because they believe they own the most

important view point to be able to make the Company Thrust

a world renowned success which "Secures the Environment".

Net Cash Requirements:

GDK requires,at its headquarters,\$33,000 yearly.

Performance Measures and Milestones:

The GDKss614 has passed its third year operating in a

vehicle under normal conditions.The organization toward

marketing the GDKss614 has a Business Plan, Prospectus,

Brochure, Patent, Internet e-commerce site, and a Phone

system that allows future employees telecommuting.

Historical Data:

See F2 of the Interactive Business Plan

Products:

See F5 of the Interactive Business Plan

Markets:

Our Markets include Auto Parts stores, Auto makers,

Auto Alarm and Security installers, Auto Stereo installers,

Hardware Stores, Building Construction, Recreation areas,

Food Service, Retail food stores, Delivery drivers

Customers:

As varied as our markets are, our customers are also.

Young and Old will be in some way touched by a GDK product.

Technology Position:

With the Government Technology Transfer Programs and

such free services as the Lawrence Livermore Labs for GDK

to use, we are assured to know the feasibility of all new

innovations from GDK.

Vertical or Horizontal Integration:

Being a Vertical Integrated Company keeps costs down

on the most wasteful areas for Manufactures,returns & back orders.

GDK charges up to 22% of the wholesale price of

its models for re-stocking charges where necessary.

With our serial number system GDK maintains inventory

control of parts on hand,man hours per unit sale, even a

local availability tracking chart.No outsourcing is used.

Cost Comparisons:

Retail price of the GDKss614 is equal to the

manually operated Anti-Carjack systems yet is automatic.

Operational Resources:

The Company can operate from other peoples homes by a

home assembly program given to people that can demonstrate

excellent manual dexterity.

Company Strenghts and Weaknesses:

GDK is very strong in its ability to link together

existing technology so to customize solutions for new

and old needs.GDK is weak in having a media relationship

that can quickly educate the public about GDK.

Bases of Competition:

Due to the exclusive GDK marketing plan on the internet

and clean processes and Patents, there are no competitors.

Key Success Factors:

To be able to have Capital ready to support sales

and gather man power world wide.GDK only sells in blocks of 10,000 units.

Competitive Position:

By being the beginning of the Anti-carjack movement

GDK is on top of all innovations that can

be added to the GDK circuitry.GDK realizes every product

must have an entertainment package to sponsor and run ads

with and GDK has developed an audience interactive show

"The Partyline" that during test marketing was a fabulous success.

Industry Life Cycle and Size:

The auto security industry rose 30% in 1995 and

the life cycle that began in 1980 for these devices has

not slowed.

Key Growth Factors:

Public acceptance of the fact that crime will always

be considered a necessary evil by desperate individuals,

give honest citizens a responsibility to protect their property

by employing systems that are effective. Education in the

growing number of innovations will promote higher

standards to those who utilize personal security systems,

thus increasing GDK sales of our continuous innovations.

Sales Tactics:

Building Code changes, Legislative mandates are being

used by the most successful companies and GDK is in the

position to do the same.GDK also uses common sense pitches

with relation to statistics by experts on public safety.

Distribution Channels:

Our home based manufacturing programs also provide

the closest local distribution channels and with Ryder

Distribution logistics,jobbers will be supplied upon writing order.

Promotion and Advertising:

Having an Internet presence, a telephone "Partyline"

comedy show, and Fax capabilities will help keep the GDK

name alive in the public domain.

Functions of Key Personnel:

Key Personnel must guide the company toward a vision

that this Business Plan tries to outline and gather all

possible information and invent all possible methods to

bring the vision into reality.

Functional Organization:

Daily duties of GDK is to issue serial numbers, check

inventory, increase efficiency of suppliers, train sales

executives, make new contacts for latest products, write

for show and up-date ads, consult with bookkeeper, read

mail and messages, send out mail and messages,check to

do list add and subtract,up-date all documents,marketing.

Press Release:

GDK Electronics is a company on the cutting edge of

future oriented technology. Bringing the highest standard of

products that can be incorporated into numerous situations,

providing the ultimate systems that conform to consumer needs.

GDK is dedicated to innovative ideas, and is prepared to lead

the way into the future.

Business and Marketing Strategies:

An Auto Security System public shopping Wherehouse

featuring all the latest technologically advanced devices,

including a variety of Nationally known auto accessories.

Installation Department on premises, knowledgeable sales staff,

and full line of GDK featured products. Promotional sales

techniques, such as working floor models, and live demos

on hot new technology.

Depending on future internet popularity, possibly better

as a cyber store. Export opportunities exist in wholesale,

retail, mail order, internet, cable TV., Television shopping

networks, automobile options list, franchises.

GDK Electronics wants to enlarge the Security field and push

for the production of new products.

Strategy will focus on operations relating to capacity,

processes, and quality control. Business will be sensitive to

market demand, and economic fluctuations to promote market

rationalization and consult with Value Engineers.

GDK inc. uses ISO 9000 for manufacturing quality control designs

and AEC standards required by the automotive industry. CONTINUE