Actionable Details

Company managers and investors keep watch on many different factors, so they know when something has become actionable. There is a pretty long list of factors that affect when investments and business strategies become actionable. Some of them include the following:

  • Fundamentals
  • Technical factors
    • Inflation
    • The economic strength of the market peers
    • Substitutes
    • Incidental transactions
    • Demographics
    • Trends
    • Liquidity
  • Market sentiment

Timing is crucial when it comes to investments and implementing business strategies. Often certain investments and business strategies lead to accomplishing a bigger goal. Most of the shorter goals are attainable in a relatively short amount of time.

Example of Actionable

One example of actionable for a corporation is when they want to expand their production capabilities. When the company comes up with the goal, it may not be the right time to implement its plans. However, say the company has an especially good year and therefore makes more profits than expected.

Because the economy seems to be doing better and the company has an excellent year, expanding production may now be actionable.

An example of when something might become actionable is when an investor wants to buy into an industry but wants to invest in a new company instead of one that is already established. At the time, there may not be a new company. However, a few years down the road, a new company may come up which is precisely what the investor was looking for. When that company approaches the investor, the idea is now actionable.

Actionable vs. Actionable

Yes, the heading above is the same word, but “actionable” means different things in two different industries. In the legal world, “actionable” means that some piece of evidence or some other thing has given the team sufficient ground to file a lawsuit.

So when you say something is actionable, you need to be sure you know if you are talking about legally actionable or business actionable. If you are not sure, it could end up creating a lot of confusion.

Significance of Actionable

Because actionable items can affect businesses, managers need to have an understanding of their business, the economy’s outlook, the businesses’ industry, and its competitors. The strategies a business might put into action can set it apart from other companies or even just improve its performance.

Investors keep an eye on everything a manager does, but they also look at certain times of the year. There are a couple of different times of the year that investments can become actionable. One of those times is near earning season. It is a typical time to look at where a company is heading and how well it is accomplishing its goals.

Other times of the year when things might become actionable for investors are when changes are made to short-term interest rates or when significant life transitions come up, such as changing jobs, buying a home, or retirement.