Everyone is talking about capability statements these days and for good reason - a stand-out capability statement can help you to acquire new and more significant clients. It showcases what sets you apart from other businesses and it empowers your brand in a way that can be irresistible. A capability statement is your gateway to secure more business and increase your return on investment and revenue. But only when it’s written professionally and appropriately.
What is a Capability Statement?
A Capability Statement is a formal document that showcases your company’s strengths and performance record. It contains essential information about your products and services to help your potential clients determine if you’re a good fit to do business with them. A well-written capability statement allows your potential clients to make an apples-to-apples comparison. That’s why yours need to stand out.
But do I really need a Capability Statement?
Well, it depends. Certainly, a good capability statement can be an awesome addition to your marketing arsenal and many Government organisations will want to see yours before they will do business with you. Here’s how you can use a capability statement:
If your business sends quotes out to potential clients on a regular basis, a capability statement is ideal to send out along with the quote as it adds a level of professionalism to your business.
You can use it as part of a response to tender since some tender submissions require a Capability Statement so that they can ensure that you’ll meet all the business requirements.
It emphasises your business’s qualifications, track record, performance history, and skills that will enable you to attract new clients and contracts.
If done correctly, it will let you stand out from the competition.
What’s included in a Capability Statement?
Opinions differ on the appropriate size for a capability statement. Traditionally, a capability statement was only a couple of pages long, and predominantly text-based. These days, most organisations want something a little easier on the eye, so it’s not unusual for a capability statement to be 8 to 10 pages long. One size doesn’t fit all, and it must be customised to your business and your target audience. But generally, here are the most crucial elements you must include in your Capability Statement:
Branding
The first page of your capability statement should immediately provide a clear image of your company’s brand to your client’s mind. This isn’t just your logo - it should include a good quality image that depicts what you do. It should also have a compelling headline or a short sentence describing what your business is all about.
Company profile
As the name suggests, your company profile is an overview of your company’s background and history. It can contain your mission, vision, and values, and what kind of relationship you have with your clients. In a nutshell, this is the opportunity to demonstrate your credibility as a company.
Core competencies
Include a robust list of your services with a clear and concise description for each. You should express how your services can add value to your potential clients’ businesses, so frame your capabilities according to the client’s perspective. Tell them how you can solve their problems and the differences you can make if they work with you.
Your leadership team
It’s important to give credit where credit is due, so including the names of the leading players in your team is essential. Showcase their expertise so you can convince your client that you’re the perfect team who can do an excellent job for them.
Track record
To further convince your prospective customer, you should present evidence of your track record and performance, such as client testimonials, projects you’ve completed, brands you’ve worked with, awards, memberships, and so on.
Complete company details
Including your complete company details is a critical element of your Capability Statement. The primary purpose is to get the customer’s buy-in that you are the one they need to work on their project. Ensuring that they have all the information they need to contact you once they’ve decided to start doing business with you is vital. Complete company details include your company’s email address, telephone number, physical address, fax number, or whatever other channels you have available.
Other information
Depending on your industry, your capability statement could also include an overview of:
Your health, safety and environmental management systems and approach
Your approach to quality management
Any specific technologies that you use to deliver your services or manage workflow
Any value adds that you offer
A word on formating
How your Capability Statement is formatted is important. Don’t be afraid to liberally sprinkle with images, use larger fonts and break up your text with headings. A 10-page capability statement that contains visual elements is much easier to read than a 2-pager that’s written in size 10 font.
Writing your Capability Statement
If you have good writing skills, a clear strategy, or are short of budget, you can definitely complete a Capability Statement yourself. However, most smart business owners prefer to hire a professional writer like me to help them save time and effort. I develop all of my capability statements in Canva, so my clients get a professionally designed document that is delivered in PDF format. I always include a low-resolution version (good for emailing), a high-resolution version (good for linking on your website or social media) and a high-resolution version with crop marks and bleed (ready for printing).
If you’d like to find out more about how Word Dynamics can write and design a compelling Capability Statement for your business, contact Pauline on 0400 514579 / pauline@worddynamics.com.au or simply contact me using this form.