42 x Capability Statement Template – Word, PDF

A capability statement acts as a resume of your company and lays its foundation. It outlines the reasons why your company is the best fit for a contract and the benefits you can provide to the agency. This essential business document serves as your first opportunity to make a lasting impression on potential clients and government agencies. A capability statement template is a one or two-page summary of what is done by your company, why it is done, and proof of your company’s previous experience.

It showcases your unique value proposition, competitive advantages, and track record of success in your industry. Whether you’re pursuing government contracts or private sector opportunities, a well-crafted capability statement can be the deciding factor in winning new business. Let’s explore why you need one and how to create an effective capability statement.

Why You Need a Capability Statement

The first impression is a big deal in contracting, and it often determines your success before you even get to present your proposal. The capability statement serves as a critical filtering tool that weeds out and evaluates contract applicants, making it essential to have one that is eye-catching and strategically presents the core strengths of your company.

This can literally be the difference between losing and winning a lucrative contract opportunity. A well-crafted capability statement helps you systematically nail down your competencies and articulate the unique aspects of your company that set you apart from competitors in your industry.

How to Write Your Capability Statement

For new or small businesses, developing a capability statement may initially appear challenging, particularly when limited historical data is available. Nevertheless, the following systematic approach will guide you through the process effectively, regardless of your company’s current stage or organizational size:

• Design: The primary focus of your capability statement is the content, but design can also have a huge impact. It can serve as an opportunity to make a memorable or eye-catching design, or one that is hard to read and forgettable. A good rule is to use a readable font with a maximum of two colours. Your contact information and logo at the top make the statement more professional.
• Introduction: After you have picked the format and the design, it is time to write an introductory paragraph that describes your company and what services and goods you provide. Make sure to be to the point and concise here, but still provide a complete business overview. 
• Basic Company Info: This is the easiest part of the capability statement since it is only the company information used to contact and identify the business. Things like the company’s point of contact, website, email, phone number, and business address should be included along with other necessary information.
• Corporate Data: This section includes your company certifications, registrations, and any other relevant information that you might want to provide.
• Core Competencies: This section describes what your company does well. It provides you with a chance to showcase and elaborate on what you bring to the table for an opportunity or a contract. This section is presented in a bulleted list and gives more information, but can still be skimmed.
• Past Performance: You can list here your previous clients and jobs to demonstrate your history and reliability. This section gives you a chance to build your credibility and authority to show that your company is the best to do the job. It also acts as a reference section, but you can include contact information for the entries. 
• Differentiators: This is the most time-consuming section of writing the capability statement. In this section, you discuss your competitive edge over your competitors. Differentiators can be your adaptability, experience, supplier relationships, and more. Mention what makes your company stand out from your competitors, and develop a detailed list of reasons the agency should select your company.

Capability Statement Template Word

Capability Statement Template PDF

Capability Statement Best Practices

A capability statement is more than a company profile—it’s a marketing tool that highlights your strengths, credibility, and value to potential clients. Done well, it helps you stand out in competitive markets and win contracts. Follow these best practices to create a clear, compelling, and professional capability statement that speaks directly to your target audience.

• Create a Clear Outline: Define the main sections of your capability statement before writing. This ensures your document flows logically and covers all essential points.
• Identify Your Target Audience: Know exactly who you are writing for. Whether it’s government agencies, corporate buyers, or potential partners, tailor your language and focus to their needs.
• Highlight Your Services and Products: Clearly state what you deliver and how it solves your audience’s problems. Be concise, yet specific enough to demonstrate value.
• Tailor the Content for Relevance: Avoid a “one-size-fits-all” approach. Customize the document for each client or opportunity to show that you understand their priorities.
• Showcase Your Core Capabilities: Use measurable achievements, certifications, case studies, or past performance examples to back up your claims. Concrete evidence carries more weight than general statements.
• Draft Each Section With Intent: Write sections such as company overview, differentiators, key personnel, and contact details in a way that reinforces your strengths.
• Use a Professional Design and Layout: Format the document so it looks clean, consistent, and easy to skim. Branding, fonts, and visuals should align with your company’s identity.
• Polish Your Writing: Run a spell check, read it aloud, and refine your tone to ensure clarity and professionalism.
• Get a Fresh Set of Eyes: Have a colleague or professional editor proofread the document. They may catch errors or suggest improvements you overlooked.
• Distribute Strategically: Don’t just create the document; use it. Send it directly to prospective clients, attach it to proposals, upload it to procurement platforms, and keep it updated for future opportunities.

Conclusion

A well-crafted capability statement is your gateway to new business opportunities. By following these templates and best practices, you can create a powerful marketing tool that showcases your company’s strengths and differentiates you from competitors. Remember to keep it concise, visually appealing, and tailored to your audience for maximum impact.

Capability Statement FAQs

What is the size of the capability statement?

The size of a capability statement should be one or two pages, and it should be to the point. The document must be visually attractive and have graphic elements similar to those in your company logo and brand.

What are the essentials of a capability statement?

The essentials of a capability statement are: it should be concise and clear, share relevant and accurate facts, and look appealing and professional.

What are the elements of a capability statement?

There are five critical elements of a capability statement: Past Performance, Core Competencies, Company Data, differentiators, and Contact Information.

Which technique is used to represent capabilities?

Capability-based planning is used to represent capabilities and includes capability mapping techniques to understand what capabilities must be changed so that your company can achieve its strategic objectives. 

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