Components of a Capability Statement
A capability statement is a resume for your business. As you begin meeting with government agencies and applying for contracts, this document will provide a snapshot of who you are, what you do, and why you’re the best pick for the job.
And, like a personal resume, there are key components you need to include. Buyers will be looking for these and often comparing your company against competitors to decide who may be the right fit for the job. Win them over every time by including these details and making them as strong as possible.
Here are the five key components of a great capability statement:
Make it clear who you are and how to find your company. The most important information to include—and one of the details most often overlooked—is your contact information. Details like your company name, logo, physical address, phone number, email address, and website should be included. From there, you’ll also want to include basic identifying details, like your tax ID number and DUNS number.
Nice-to-have details include personal or company certifications, active social media profiles, and your president or CEO’s name and title.
If appropriate, you may also consider adding their headshot, which can help give your capability statement the human touch others may not have.
When it comes to explaining your services, keep things simple and focused. Emphasize your top 3-4 strengths as a company. This isn’t a time to be all things to all people.
An easy and required way to elaborate on what services your company offers is through NIGP (National Institute of Government Purchasing) and NAICS (North American Industry Classification System) codes. These codes are assigned to companies to help classify the type of work they do.
It also allows the government the ability to collect, analyze, and publish statistical data about the country’s economy. You will also want to include the industries you serve, such as K-12 education, healthcare, construction, or other types of businesses.
We live in an increasingly international world, so you’ll want to show off not just where you operate but what your reach is for providing goods or services. Include your geographic reach and locations of your warehouse, plant, or office. (Your contact information under identity can also cover this if you only have a single physical address.)
This is your space to highlight the companies your business has worked with. These can be highlighted in a number of ways on a capability statement. You might include their logo, with permission. Maybe you want to sum up your experience “by the numbers” and list things in an infographic, such as years in business, number of repeat clients, how many projects you’ve completed this year, or even annual sales (especially if you can show growth year after year).
Just getting started? Use your personal experience to show why you’re qualified to do this work.
This is also a great place to show off any memberships to industry organizations, including leadership positions, as well as personal or company awards, accolades, or important accomplishments.
5. Why YOU?
And finally, sell them on why your company can do the best job! If you have a clear and concise mission or value proposition, make it prominent on your capability statement. In its simplest form, a value proposition explains who you are, what problem you solve, and who you solve it for. Keep these simple, straightforward, and avoid jargon.
Here’s a helpful hint: this is also a good time to look at your competitor’s websites and figure out how you can differentiate yourself from them.
Depending on the type of work you do, including details about your insurance can help set you apart from others in the bidding process. Consider including a snapshot of things like general liability, profession liability, and worker’s comp.
Finally, include references! You should have a minimum of three people on standby at all times to serve as your reference. These should be people or companies that you would want to work with again, whose projects you were proud to compete, or who you’ve worked with repeatedly. Include their name, title, company, and preferred contact information on your capability statement.