This is one of the most important sections of your financial model, as without sales, your company will be short-lived. This may or may not apply to the 501 series companies.

Without a doubt, your investigation and expectations in sales is crucial.  Take care not to be too optimistic about both the rate and amount of sales you will achieve.  If you put your reliance on sales to keep your cash flow in the black, then be very judicious in how you will achieve them.

There are several cost mechanisms that will affect sales.  First, you will have Gross Sales, which will be offset perhaps by several other line items that will reduce your Gross Sales figure to Net Sales.

Those costs can include royalties, special taxes, and either COGS or COS. 

In some cases, you may collect fees in advance of performing services. 

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