Every dollar you spend is a risk! However, if you look at it that way, you might never spend anything at all. To assess the risk of capital expenditure, try the SWOT technique. This drives you to analyse the results of your spending in terms of strengths, weaknesses, opportunities caused and potential threats. Figure out if your spending will save you money and whether it will provide return on investment. Try to forecast what will happen in your business if you don’t spend the money and you will be able to better understand the risks involved.
