Avoid over-investment in capacity that you may not use. Be especially wary if you are facing long lead times and you have to add new capacity in large increments. If you must invest, try to invest in multiple-use assets. 2, Don’t invest in order to improve your competitiveness as a commodity producer. You don’t want to compete on price. Invest instead to improve on quality. 3, If you are investing in capital as a substitute for labor - make sure that labor productivity increases enough so capital intensity relative to sales does not increase. The improvement must not only pay for the cost of capital but in addition must leave you with an incremental benefit. 4, Consider partnering with someone else. Use their capital. The less of your own money you invest, the less return you need to obtain the same ROI.