What is a Capability Statement?

A capability statement, in its most basic form, is a promotional or marketing statement about your company and its capabilities and skills that advertises who you are and what you do. Capability Statements, on the other hand, must be tailored to your audience: the government buyer or prime contractor.
Successful businesses use their Capability Statement for a variety of purposes, including:
  • It is required in many government or private sector registration processes 
  • It opens doors to new agencies 
  • It is proof of qualification 
  • It is proof of past performance 
  • It distinguishes you from your competitors

Contents of the Capability Statement

A successful Capability Statement includes the following five key areas:
  1. Core competencies / capabilities 
  2. Differentiators / including facilities and equipment 
  3. Past performance 
  4. Corporate data including industry codes 
  5. Contact information
Use the section labels Core Competencies, Past Performance, and Differentiators when writing a Capability Statement. These are the key factors that government buyers are looking for in order to make an informed decision.
For the past years, IDX.Marketing has been helping businesses and entrepreneurs with their capability statements.

As a Travel+Leisure Protege (previously Wyndham Destinations), we spent an entire year developing and perfecting the strategies to create a capability statement that is specific to your business and branding and also resonates with the major Fortune companies that are accustomed to reading them. (Such as Universal Orlando, Disney, Travel+Leisure, and many more).

Your capability statement needs to be your “one minute elevator speech on paper.”
Below is our take on what was discussed in the meeting and some advice we have come across.
As every Fortune company is different and their procurement department is managed by many talented leaders, they agree on the following terms:
What a Capability Statement should have:
A good, recognizable design will always aid in conveying your main points and can serve as a visual representation of the work you do, your corporate culture, and your core values. They need a clear explanation of your company’s operations. In essence, what issues do you resolve for them? You would have to be concise and direct when you create your business description.
Past experience.
They want to know how long you have been in business, and exactly what your focus is. (Main services or Products) Some, would even like to see your sales revenue. They want to make sure you can handle the business they are about to throw your way. Mentioning your team, whether you have employees or work with subcontractors and advisors, is another way to show off your abilities.
The most crucial thing in this situation is that you demonstrate your ability to manage the situation and that it is because of your knowledge that they can feel confident that the job will be completed.
Remember to keep it simple:
A minimum of words should be used. These accomplished managers at Fortune 500 companies lead hectic lives. On top of all the other duties they have, they are used to receiving numerous capability statements and presentations on a monthly basis. They are seeking solutions, so the easier you can make it for them to understand your services or products, the more likely it is that they will choose you for the job.
Do’s and Don’ts:
  • DO represent your brand.
You and your team members must represent your brand. The way you groom and dress must be a good representation of your business. If your designs do not match your personal care, it creates a dissociation of who you are and your company, thus, bringing distrust or raising a red flag for potential buyers.
  • Do NOT mess up.
There may be delays in some projects, but if you consistently fail to deliver what you promised, your problems will only get worse. They all exchange information with one another. They are very well acquainted with one another across all businesses, and they will all be aware if you do not fulfill your promises.
  • Do NOT embellish.
Don’t put in more than you can actually handle. When they realize that some of what you said was not your strongest suit, it will appear bad.
  • DO keep your “NAICS” codes and all other codes limited to your niche.
This is an extension of the point above. Leave out the codes that are not exactly what your services and capabilities reflect.
DO add the companies that you have worked with in the past or present.
  • DO add any AWARDS your company has received.
Incorporate any certifications, standards, etc. Make sure to include the items you have acquired over the years
  • Do NOT over promise.
Make sure you are qualified for the position you are applying for. There are many aspects of the project that you merely are unaware of. The Fortune 500 companies are always changing and have a huge number of moving parts. Prior to applying for a job, make sure you conduct your DUE DILIGENCE and consider all relevant factors.
DO showcase the key area of your expertise.
  • DO your homework.
Create a capability statement that is specific to the areas you want to improve. Additionally, depending on the demands of the job, you can have multiple capability statements and create one for each service or product.
  • DO Follow up.
By submitting your capability statement, you do not ensure that your business will stand out or that you will be added to their database. You must check that you are listed as a vendor on the client’s portal and send emails to the people to whom you have submitted capability statements.
Do not forget that people only do business with those they know and trust.
Final words of advise:
  • Display your brand.
Make sure that your designs, website, team, and you all embody your brand. More importantly for your client, make sure that your business can be seen as a continuation of their branding.
  • One Page Capability Statement.
Make sure you share the necessary information in as few words as possible.
  • Before contacting the business, do some research on it.
In your area of expertise, be sure you are completely aware of their biggest pain point and that you know how to alleviate it.
  • Follow up.
You can follow up with an email and share some more information such as yearly revenue, case studies, Clients testimonials etc…
  • Think about including “Case Studies.”
Keep in mind that people retain stories. Add it if you have a strong argument that can be made in few words.
Add some testimonials from your most appropriate clients.
On the link below is a questionnaire they shared at the meeting that covers most of the information you will need to make your capability statement.
Click HERE to start the process of creating your Capability Statement.
Click HERE to see our own Capability Statement.
Click HERE to see more samples of our Capability statements.
For more information click  HERE.
We, in IDX.Marketing, specialize in the Capability Statement Creation and will help you every step of the way. Fill out the questionnaire to start our easy and quick process.

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Keyword research is about locating the most searched words and phrases by users. This means that it is essential to tag the content of your site so that search engines can easily locate them.

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Capability Statement

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