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Pick your model before you spend a pound.

There are models you can use. The obvious one is advertising.

Next is the emotional experience — what customers feel when they use the service.

The subscription model creates value only when it can sell to converted users. Example: Netflix. Dropbox too.

The brokerage model is like Amazon. eBay also — connecting buyers and sellers.

Obviously, if you can sell direct to customers you have lower marketing costs.

So you need to define your model: is it direct to customer, or do you sell through others — lower marketing costs and faster growth, but you pay the middleman? Hotels, for example, pay a high cost to the brands.

So the key question: what is the difference between the tech business and the conventional business?

Five out of six of the globe’s most valuable companies are tech. Financial management has to adapt to them.

We use a different lens to measure tech businesses — and many accountants have not kept up.

Tech business is not under one roof. It is lots of networks.