How clearly can you explain what your business does and the value it brings to clients? Whether you're sharing your business publicly for the first time or pitching to new clients, a capability statement can make all the difference.
What is a capability statement?
A company capability statement highlights who your business is, what value you offer, and the key reasons why employers should choose you. To put it simply, it’s a document that outlines what your company is capable of and how your abilities can meet the project at hand.
Think of it as a resume for your business, filled with your company background, experience, and areas of expertise that are compatible with the requirements of any project you’re putting your name up for. It should include your accreditation, business strengths, and any unique skills you can bring to the table.
The goal of your capability statement is to show your business’s abilities in a positive light so you can help your skills stand out against the competition. Ultimately, it tells project decision-makers and procurement professionals why you would be a good fit for their project.
A business capability statement combines:
Industry expertise + Relevant experience + Professional presentation = Making you a strong contender for new projects.
Why does my organisation need a capability statement?
It’s recommended that businesses include a capability statement in tender documentation. But, what exactly is tender documentation? In construction, it’s a set of documents created by a quantity surveyor or similar professional to invite contractor bids. These documents outline the project details and explain how contractors should submit their proposals.
Often when responding to a tender, the application may request a capability statement to support your submission, so having one written ahead of time will make it easier for you to apply and tailor it to the specific role. The decision-maker or procurement manager will use the capability statement to check your skills and experience against the project requirements.
As a break down, here are the reasons why having a formal capability statement will help:
- Respond to tenders and apply for projects
- Show qualifications and industry experience
- Increase the chance of winning a new contract
- Present a professional image to new contacts
- Stand apart from competitors in the industry
What should I include in a capability statement?
A capability statement is an authentic way to promote your business to be picked for projects. It’s important that you present your business honestly and in a way that connects with what key project decision-makers and procurement managers are looking for.
You’ll want to focus on providing an overview of:
- Business - What do you do?
- Offer - What value can you bring to the client who hires you?
- Difference - What makes your business unique?
- Track Record - What expertise and experience can you bring to the table
To break this general plan into more specific steps, you might want to structure your capability statement into these 8 sections:
- Business introduction and overview
- Business purpose and core competencies
- Service and product summary
- Industry speciality summary
- Awards, accreditation, or expertise
- Health, safety, and environmental commitments
- Case studies or testimonials from previous clients
- Contact information, ABN, and website details
How to write a capability statement
When preparing your statement, avoid grammar or spelling mistakes, make it a maximum of 3 to 4 pages, and tailor each individual submission to the specific job you are applying for. Make it professional, sharp, and convincing, so you can demonstrate to your clients why your business is the best choice for their project. It needs to resonate with their needs and project criteria.
As you write your capability statement it’s important that you consider who your audience is and if the information you’re sharing will impact them. Take enough time to write it thoroughly and consistently update it as you submit it to different managers. Ask for constructive feedback from your business contacts and keep your website updated so it aligns with everything mentioned in your professional capability statement. You’ve got this!
Best practices for capability statement design
Once your content is written out, the next stage is designing it. Online templates offer a convenient starting point, but investing in professional design and copywriting can give your business the edge it needs.
No matter if you do it yourself or hire someone else, it’s crucial that your capability statement is visually appealing and easy to follow. That means sticking to your brand identity – the right brand colours, logos and fonts – and also adding in icons, putting content in bullet points, and inserting eye-catching pictures that resonate with your business.
Make it available in PDF for distribution and title it exactly what it is, “Capability Statement.” The way you design your statement does impact how the reader perceives you and your story, so keep that in mind. Generally, procurement managers and project decision-makers are time-poor. By making the statement design easy to navigate and digest, it will improve your chances of appealing to the right people and ultimately, landing the right job.
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