How quickly and concisely could you explain what your business does or, more importantly, what you can do for clients?

Whether you’re looking to win new clients, grow your business by submitting requests for tender or market your business better, a capability statement can help.

Here’s the rundown on what a capability statement is and how to create yours.

What is a capability statement?

A capability statement outlines what you can offer potential clients and provides the essential details to help them decide whether to do business with you. It can also be used to open doors to new suppliers or incorporated into tender documents.

Your capability statement could be a couple of paragraphs through to several pages – depending on where and how you plan to use it.

Why does my business need a capability statement?

A capability statement can help you:

  • respond to requests to tender (many tender applications require a capability statement to ensure your business can meet the client’s requirements)
  • highlight your skills/qualifications/track record to improve your ability to win contracts or attract new clients
  • showcase your business in a professional manner and stand out from the competition.

What information should you include?

One size doesn’t fit all; the information you include will depend on the complexity of your business, your target audience and where you intend to use the statement.

A basic capability statement (such as one to market your business) could include:

  • a company profile
  • core competencies
  • who is in your management team and their expertise
  • details of your major clients or significant pieces of work you have completed
  • descriptions of your products and services
  • your contact details.

Tips for writing your capability statement

General points to consider include:

  • Thinking about who your audience is and write specifically for them; what do they need to know about you?
  • Using language and terminology appropriate for your target industries. You may need different versions for different audiences.
  • Explaining the features and benefits of your business that will help solve customers’ problems.
  • Keeping it simple.
  • After reviewing your first draft have someone else check it.
  • Use graphics to explain your brand values. Online tools such as Canva are an easy way to create engaging images.

Free capability statement template and guide

For more guidance on how to complete a capability statement, as well as a do-it-yourself template, download our How to Develop a Capability Statement guide.

More information

Our tendering and contracts workshops can guide you through the process of growing your business by applying for tenders, with guidance on how to write winning submissions and understanding the evaluation process. We also suggest reading:

Starting and growing
14 September 2022