How to Write a Capability Statement

What is a Capability Statement?

Definition

A capability statement is a concise, formal document that outlines a business’s core competencies, achievements, and unique selling points. It serves as a resume for your business, detailing what you can offer and why potential clients should choose your services.

Purpose and Use Cases

The primary purpose of a capability statement is to communicate your business’s strengths and capabilities to potential clients, partners, and stakeholders. It is often used in situations such as:

• Responding to tenders and proposals.
• Presenting during business pitches and introductions.
• Networking at industry events.
• Seeking partnerships and collaborations.
• Applying for government contracts and funding.

Why It Is Essential for Businesses

A capability statement is essential because it:

• Establishes Credibility: It provides evidence of your business’s expertise and past successes, building trust with potential clients.
• Secures Contracts: By clearly outlining your capabilities and achievements, it enhances your chances of winning contracts and business opportunities.
• Differentiates Your Business: It highlights what sets your business apart from competitors, making you more memorable and attractive to potential clients.
• Enhances Professional Image: A well-crafted capability statement projects a professional image, reinforcing your business’s reliability and competence.

Why You Need a Capability Statement

Establishes Credibility

A capability statement provides concrete evidence of your business’s expertise and past successes. By presenting detailed information about your competencies and achievements, it builds trust with potential clients and partners. This credibility is crucial in competitive markets where businesses must prove their reliability and effectiveness to win contracts and secure opportunities.

Secures Contracts

Clearly outlining your capabilities and achievements in a capability statement enhances your chances of winning contracts. It serves as a persuasive document during tender responses, business pitches, and proposal submissions, making it easier for decision-makers to understand why they should choose your business over others.

Differentiates Your Business

A capability statement highlights what sets your business apart from competitors. It showcases your unique selling points, specialized skills, and industry-specific experience, making your business more memorable and attractive to potential clients. This differentiation is key to standing out in crowded marketplaces.

Enhances Professional Image

A well-crafted capability statement projects a professional image, reinforcing your business’s reliability and competence. It shows that you are organized, detail-oriented, and serious about your business, which can significantly impact how potential clients and partners perceive you. This professional image can lead to more business opportunities and long-term relationships.

Key Elements of a Capability Statement

Company Overview

A brief description of your company, including its mission statement and core values. This section sets the stage by providing a snapshot of what your business does and what it stands for.

Core Capabilities

A list of your primary services or products. Highlight your unique selling propositions and what makes your business stand out in the market.

Past Performance

Highlight key projects or contracts you have successfully completed. Include testimonials or case studies to provide evidence of your achievements and build credibility with potential clients.

Differentiators

Identify what sets your business apart from competitors. This could include special certifications, awards, or unique methodologies that give you a competitive edge.

Company Data

Provide essential information such as contact details, legal structure, DUNS number, and NAICS codes. This section ensures that potential clients have all the necessary information to reach out to you and verify your business credentials.

Optional Sections

• Client Testimonials: Positive feedback from satisfied clients that can enhance your credibility.
• Case Studies: Detailed examples of your work that demonstrate your capabilities in action.
• Certifications and Awards: Any relevant certifications or awards that highlight your expertise and recognition in the industry.

7 Steps to Writing a Capability Statement

Step 1: Identify Your Business Capabilities

Start by assessing and listing your key services or products. Clearly define what your business does best and how these capabilities align with the needs of your target clients. This section should reflect your core competencies and areas of expertise.

Step 2: Highlight Key Achievements

Select relevant past projects or contracts that showcase your business’s success and reliability. Include measurable outcomes, such as increased revenue, efficiency gains, or successful project completions. Highlighting these achievements builds credibility and demonstrates your capability.

Step 3: Include Core Competencies

Detail your primary areas of expertise, focusing on what you do exceptionally well. This section should convey the unique skills, technologies, and processes that differentiate your business. Make sure to align these competencies with the needs of your prospective clients.

Step 4: Add Relevant Experience and Past Performance

Showcase successful projects with specific metrics and testimonials from satisfied clients. This provides social proof of your capabilities and reassures potential clients of your reliability and effectiveness. Highlight projects similar to those you are targeting with this capability statement.

Step 5: Differentiate Your Business

Emphasize what makes your business unique compared to competitors. This could include specialized certifications, innovative processes, industry awards, or unique methodologies. Clearly articulate why clients should choose your business over others.

Step 6: Compile Company Data

Ensure all essential information is included, such as contact details, legal structure, DUNS number, and NAICS codes. Accurate and comprehensive company data helps potential clients verify your business credentials and facilitates easy communication.

Step 7: Review and Polish

Proofread the document for clarity, consistency, and professionalism. Make sure the information flows logically and is easy to read. A polished, error-free capability statement projects a professional image and enhances your credibility.

How to Structure Your Capability Statement

A well-structured capability statement not only conveys your business’s strengths but also ensures that the information is easily digestible and visually appealing. Here’s how to structure your capability statement using Xtensio’s capabilities to maintain brand consistency and professional quality:

Layout and Design Tips

1. Use a Clean, Professional Layout: Xtensio offers customizable templates that allow you to maintain a clean and professional look. Choose a template that aligns with your brand’s aesthetics and ensures your content is well-organized.
2. Incorporate Your Branding: Customize the templates with your company’s logo, colors, and fonts. This helps reinforce your brand identity and makes your capability statement more recognizable. Consistent branding across all documents strengthens your professional image.
3. Break Down Content into Sections: Divide your content into clear sections, such as Company Overview, Core Capabilities, Past Performance, Differentiators, and Contact Information. Xtensio’s drag-and-drop editor makes it easy to arrange these sections logically.

Using Headings and Bullet Points

1. Use Clear Headings: Headings should be bold and distinct, making it easy for readers to navigate through the document. Xtensio’s editor allows you to format headings effectively, ensuring they stand out.
2. Utilize Bullet Points: Bullet points help in breaking down complex information into manageable chunks. They make your content easier to read and highlight key points clearly. Xtensio provides simple tools to incorporate bullet points seamlessly.
3. Highlight Key Information: Use bold text or different font sizes to emphasize crucial information. This technique ensures that the most important details catch the reader’s eye quickly.

Ensuring Visual Appeal

1. Add Visual Elements: Incorporate images, charts, and infographics to make your capability statement more engaging. Xtensio’s platform allows you to easily insert and customize visual elements, enhancing the overall appeal of your document.
2. Use White Space Wisely: Avoid clutter by using white space effectively. It helps in making the document look clean and professional. Xtensio’s templates are designed to balance text and white space, ensuring readability.
3. Consistent Design Elements: Maintain consistency in design elements such as fonts, colors, and spacing. Xtensio’s editor helps you keep these elements uniform throughout the document, creating a cohesive and professional look. Consistent design reinforces your brand and ensures that all your documents have a unified appearance.

By leveraging Xtensio’s capabilities, you can create a structured and visually appealing capability statement that effectively communicates your business’s strengths and unique offerings. This structured approach not only enhances readability but also ensures that your capability statement makes a strong impression on potential clients and partners while maintaining brand consistency.

Tips for Creating an Effective Capability Statement

Keeping it Concise and Focused

1. Be Clear and Direct: Ensure your capability statement is concise and to the point. Avoid unnecessary jargon and focus on delivering clear, valuable information. Xtensio’s templates help streamline content, ensuring you stay concise.
2. Highlight Key Points: Use bullet points to break down complex information into easily digestible segments. Xtensio’s editor allows you to format text with bullet points, making key information stand out.

Using Clear and Professional Language

1. Maintain Professional Tone: Use formal yet approachable language. Xtensio’s platform supports the use of various text styles, ensuring your document remains professional and engaging.
2. Avoid Jargon: Write in plain language to ensure your message is easily understood by all readers. Xtensio’s templates are designed to facilitate clear communication.

Tailoring the Statement to Your Audience

1. Understand Your Audience: Customize your capability statement to address the specific needs and interests of your target audience. Xtensio’s customizable templates allow you to easily tailor content for different audiences.
2. Highlight Relevant Experience: Focus on past projects and experiences that are most relevant to your target clients. Use Xtensio’s drag-and-drop editor to rearrange content and highlight pertinent information.

Including Visuals such as Logos and Relevant Images

1. Enhance with Visuals: Incorporate your company’s logo, images of past projects, and other relevant visuals. Xtensio allows you to seamlessly add and customize visual elements to enhance your document’s appeal.
2. Use Infographics: Visual data representations like infographics can make complex information more understandable. Xtensio’s platform supports the integration of various visual elements, making your capability statement more engaging.

Regularly Updating the Document

1. Keep Information Current: Regularly update your capability statement to reflect your latest achievements, projects, and contact information. Xtensio’s live document feature ensures that updates are easy to implement and instantly available to all stakeholders.
2. Review for Accuracy: Periodically review your capability statement to ensure all information is accurate and up-to-date. Xtensio’s collaborative tools allow team members to easily review and update content as needed.

Examples of Capability Statements

Providing real-world examples of capability statements can help illustrate what makes an effective document. Here are a couple of industry-specific examples that highlight key elements and effective strategies used in each:

Example 1: Construction Industry

Company Overview

• ABC Construction is a leading construction company with over 25 years of experience in commercial and residential projects. Our mission is to deliver high-quality construction services that exceed client expectations.

Core Capabilities

• Project Management: Expert project management from planning to completion.
• General Contracting: Comprehensive construction services for a variety of building types.
• Sustainable Building: Implementing eco-friendly building practices and materials.

Past Performance

• High-Rise Residential Building: Completed a 20-story residential building in downtown New York, on time and within budget.
• Commercial Complex Renovation: Successfully renovated a 15,000 sq. ft. commercial complex, resulting in a 20% increase in tenant occupancy.

Differentiators

• LEED Certified: Certified in Leadership in Energy and Environmental Design, ensuring sustainable and green building practices.
• Award-Winning Projects: Recipient of the 2023 Best Construction Project Award by the National Builders Association.

Company Data

• Contact Information: John Doe, CEO, [email protected], (123) 456-7890
• Legal Structure: LLC
• DUNS Number: 123456789
• NAICS Code: 236220 (Commercial and Institutional Building Construction)

Optional Sections

• Client Testimonials: “ABC Construction transformed our vision into reality with exceptional attention to detail.” – Client A
• Certifications and Awards: 2023 Best Construction Project Award, LEED Certification

Example 2: IT Consulting Firm

Company Overview

• XYZ IT Consulting is a premier provider of IT solutions, specializing in cybersecurity, data analytics, and cloud computing. Our goal is to empower businesses with cutting-edge technology solutions.

Core Capabilities

• Cybersecurity: Advanced threat detection and prevention services.
• Data Analytics: Comprehensive data analysis and business intelligence solutions.
• Cloud Computing: Scalable cloud solutions tailored to business needs.

Past Performance

• Cybersecurity Implementation: Implemented a robust cybersecurity framework for a financial institution, reducing cyber threats by 40%.
• Data Analytics Project: Developed a data analytics platform for a retail company, increasing sales by 25% through improved customer insights.

Differentiators

• Certified Experts: Team of certified professionals with industry-recognized credentials.
• Innovative Solutions: Utilizing the latest technology trends to deliver innovative IT solutions.

Company Data

• Contact Information: Jane Smith, CTO, [email protected], (987) 654-3210
• Legal Structure: Corporation
• DUNS Number: 987654321
• NAICS Code: 541512 (Computer Systems Design Services)

Optional Sections

• Client Testimonials: “XYZ IT Consulting’s solutions have significantly enhanced our operational efficiency.” – Client B
• Certifications and Awards: Certified Information Systems Security Professional (CISSP), Microsoft Certified: Azure Solutions Architect Expert

By analyzing these examples, you can see how a well-structured capability statement effectively communicates a business’s strengths, showcases relevant experience, and highlights unique differentiators. Use these examples as a guide to create your own capability statement that stands out to potential clients and partners.

Capability Statement Templates

Xtensio simplifies the process with its user-friendly templates. Here’s how you can use and customize these templates to create a professional and effective capability statement.

Downloadable and Customizable Templates

Xtensio offers a range of customizable templates specifically designed for creating capability statements. These templates help you organize and present your business’s information clearly and professionally. Each template includes pre-defined sections such as Company Overview, Core Capabilities, Past Performance, Differentiators, and Company Data, ensuring you include all the essential elements. You can work on them online with your team and download them as needed.

Instructions on How to Use and Customize the Templates

1. Select a Template: Start by choosing a template from Xtensio’s template library that best fits your business needs. You can preview each template to see its layout and design.
2. Customize Your Content: Using Xtensio’s drag-and-drop editor, you can easily add, remove, or rearrange sections within the template. Enter your company’s information directly into the fields provided. Tailor the content to highlight your business’s unique strengths and capabilities.
3. Incorporate Visual Elements: Add your company’s logo, images of past projects, and other visual elements that enhance the document. Xtensio allows you to upload images and graphics seamlessly, ensuring your capability statement is visually appealing.
4. Maintain Brand Consistency: Customize the template with your brand’s colors, fonts, and other design elements. Xtensio’s editor makes it easy to apply your branding consistently across the document, reinforcing your professional image.
5. Engagement Analytics: Xtensio provides engagement analytics to track how viewers interact with your capability statement. You can see who has viewed your document, how long they spent on each section, and other valuable insights to understand its impact and effectiveness.
6. Review and Edit: Once you have filled in all the necessary information, review the document for accuracy and completeness. Xtensio’s collaborative features allow team members to review and edit the document in real-time, ensuring all input is incorporated.
7. Embed and Present: You can embed your capability statement on your website or present it directly to clients using Xtensio’s interactive features. This functionality makes it easy to share your document in a professional and accessible format.
8. Download and Share: After finalizing your capability statement, you can download it in various formats such as PDF or share it directly via a link. Xtensio’s live document feature allows you to keep the document updated and accessible at all times.

Checklist for Your Capability Statement

Ensuring that your capability statement is comprehensive, accurate, and professional is essential for making a strong impression on potential clients. Use this checklist to review and finalize your document.

Key Information to Include

1. Company Overview
   • Brief description of the company
   • Mission statement and core values
2. Core Capabilities
   • Primary services or products
   • Unique selling propositions
3. Past Performance
   • Key projects or contracts
   • Testimonials or case studies
4. Differentiators
   • What sets your company apart from competitors
   • Special certifications or awards
5. Company Data
   • Contact information
   • Legal structure, DUNS number, NAICS codes (if applicable)

Ensuring Completeness and Accuracy

1. Thorough Review
   • Proofread for spelling and grammatical errors
   • Ensure all sections are complete and information is accurate
2. Consistency
   • Verify that all design elements (fonts, colors, logos) are consistent throughout the document
   • Check that formatting is uniform (e.g., headings, bullet points)
3. Relevance
   • Tailor content to the specific audience or client you are targeting
   • Highlight the most relevant projects and achievements

Final Review Steps

1. Feedback
   • Get feedback from colleagues or mentors
   • Consider the perspectives of potential clients or partners
2. Engagement Analytics
   • If using Xtensio, review engagement analytics to understand how viewers interact with your document
   • Adjust content based on insights gained from analytics (e.g., areas where viewers spend the most time)
3. Embedding and Presenting
   • Use Xtensio’s capabilities to embed your capability statement on your website or present it directly to clients
   • Ensure that embedded documents are fully functional and display correctly
4. Download and Share
   • Test downloading the document in various formats (PDF, link sharing) to ensure quality
   • Ensure that all links within the document work correctly

Frequently Asked Questions (FAQs)

Creating a capability statement can raise a number of questions. Here are some of the most common queries and detailed answers to help you through the process.

What is a Capability Statement?

A capability statement is a concise document that outlines a business’s core competencies, achievements, and unique selling points. It serves as a resume for your business, detailing what you can offer and why potential clients should choose your services.

How Do You Write a Good Capability Statement?

To write a good capability statement:

1. Identify Your Business Capabilities: Assess and list your key services or products.
2. Highlight Key Achievements: Select relevant past projects or contracts that showcase your success.
3. Include Core Competencies: Detail your primary areas of expertise.
4. Add Relevant Experience and Past Performance: Provide metrics and testimonials from successful projects.
5. Differentiate Your Business: Emphasize what makes your company unique.
6. Compile Company Data: Include contact details, legal structure, and other relevant information.
7. Review and Polish: Proofread for clarity and professionalism.

What are the Key Elements of a Capability Statement?

Key elements include:

• Company Overview: Description, mission statement, and core values.
• Core Capabilities: Primary services or products and unique selling points.
• Past Performance: Key projects or contracts and testimonials.
• Differentiators: Unique aspects, certifications, or awards.
• Company Data: Contact information, legal structure, DUNS number, NAICS codes.
• Optional Sections: Client testimonials, case studies, certifications, and awards.

What is a SAM.gov Capability Statement?

A SAM.gov capability statement is a document designed to meet the requirements for registration on the System for Award Management (SAM) website. This statement helps businesses qualify for federal contracts by providing detailed information about their capabilities and past performance.

How Do You Write a Capability Statement Example?

When writing a capability statement example:

1. Select a Template: Use a customizable template like those provided by Xtensio.
2. Customize Your Content: Enter your company’s information and tailor the content to highlight your strengths.
3. Add Visual Elements: Include logos, images of past projects, and other relevant visuals.
4. Maintain Brand Consistency: Use your brand’s colors, fonts, and other design elements.
5. Review and Edit: Ensure the document is accurate and polished.
6. Embed and Present: Use Xtensio’s features to embed the document on your website or present it directly to clients.

How Long Should a Capability Statement Be?

A capability statement should be concise, typically one to two pages. It should provide all essential information without overwhelming the reader. Use bullet points and headings to make it easy to read.

What is a Capabilities Brief?

A capabilities brief is a short document or presentation that highlights a business’s core competencies, achievements, and unique selling points. It is similar to a capability statement but often more succinct, focusing on key highlights.

What are the Three Types of Capabilities?

1. Core Capabilities: Fundamental services or products that define the business.
2. Distinctive Capabilities: Unique skills or attributes that differentiate the business from competitors.
3. Complementary Capabilities: Additional skills or resources that enhance the business’s primary offerings.

What are the Three Characteristics of Capabilities?

1. Valuable: Capabilities must provide value to clients and contribute to the business’s success.
2. Rare: Unique capabilities that are not commonly found among competitors.
3. Non-substitutable: Capabilities that cannot be easily replaced or imitated by others.

What is Another Name for a Capability Statement?

Another name for a capability statement is a “corporate capability statement” or “company profile.”

How Can Xtensio Help in Creating a Capability Statement?

Xtensio offers customizable templates designed specifically for capability statements. These templates include pre-defined sections and are easy to customize with your branding, content, and visuals. Xtensio also provides features for real-time collaboration, engagement analytics, and the ability to embed and present documents.

Resources and References

To further enhance your capability statement and ensure it meets industry standards, here are some useful resources and references:

1. HUD – Creating an Effective Capability Statement:
   • This guide from the U.S. Department of Housing and Urban Development provides detailed instructions on what to include in your capability statement and why it is important.
   • Read more here
2. ESD NY – Capability Statement Fact Sheet:
   • The New York State Empire State Development fact sheet outlines the components of a capability statement and provides tips for writing an effective one.
   • Read more here
3. HHS – Write a Capability Statement:
   • The U.S. Department of Health and Human Services provides guidance on writing a capability statement, including key elements and how to use it.
   • Read more here
4. NASA – Capabilities Statement:
   • This document from NASA offers insights into creating a capabilities statement, focusing on key elements and effective tips.
   • Read more here
5. Business Queensland – Writing a Business Capability Statement:
   • The Queensland Government’s guide provides a comprehensive look at what to include in a capability statement and how to structure it effectively.
   • Read more here
6. USAID – Organizational Capacity Assessment Tool:
   • This guide offers a comprehensive approach to assessing and improving organizational capacity, which can be valuable when preparing your capability statement.
   • Read more here
7. USAID – Local Capacity Strengthening Policy:
   • USAID’s policy document provides insights into capacity strengthening practices, which can inform the development of your capability statement.
   • Read more here

Conclusion

Creating an effective capability statement is a vital step for any business looking to secure contracts, establish credibility, and differentiate itself in the market. This guide has covered the essential components and steps to create a compelling capability statement, leveraging tools like Xtensio to enhance the process.

Summary of Key Points:

1. Understanding Capability Statements: Know what a capability statement is and why it’s crucial for your business.
2. Key Elements: Include company overview, core capabilities, past performance, differentiators, and company data.
3. Steps to Create: Follow a structured approach to identify business capabilities, highlight achievements, and review the document for professionalism.
4. Structuring and Designing: Use Xtensio’s templates to maintain a clean, branded, and visually appealing document.
5. Customization and Analytics: Tailor the statement to your audience and use engagement analytics to track its effectiveness.

Now that you have a comprehensive understanding and the necessary tools, it’s time to start creating your capability statement. Use the resources and templates provided to ensure your document stands out and effectively communicates your business’s strengths. Whether you’re targeting government contracts, corporate clients, or new business opportunities, a well-crafted capability statement can open doors and drive growth.

Now get started today and position your business for success!

Alper Cakir

Alper Cakir is the founder and CEO of Xtensio, a next generation document collaboration platform, a staple tool for businesses globally. He boasts over 17 years in the tech industry with expertise in UX/UI design, product management, and innovative business strategy. His passion for design led him to work with major clients like CBS Interactive, NBC Universal, and Toyota. Before Xtensio, he co-founded Fake Crow in Los Angeles, known for its innovative UX/UI approach. Alper studied music theory and jazz composition at Istanbul Bilgi University and guitar at Musicians Institute in London. Known for his hands-on approach, his philosophy is to simplify processes, cut through bureaucratic red tape, and empower teams to achieve their best work.

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