The Power of a Capability Statement: A Must-Have for Small Businesses


The Power of a Capability Statement: A Must-Have Tool for Small Businesses

For small businesses aspiring to collaborate with Fortune 500 companies or secure government contracts, the submission of a Capability Statement is often a prerequisite. This essential document serves as your company’s introduction, enabling potential clients to swiftly evaluate what you bring to the table.

A well-crafted Capability Statement can be the key to catching the eye of decision-makers. It’s crucial to invest time and effort into creating this document, as it not only showcases your strengths but also distinguishes you from similar vendors. Moreover, it allows you to share your success stories and serves as a testament to your achievements as a growing small business.


So, what exactly is a Capability Statement?

In essence, a Capabilities Statement is your business’s elevator pitch in document form. It outlines what your company offers, organized into standard sections for easy skimming by decision-makers. This document typically comes into play at business matchmaking events where Supplier Inclusion professionals scout for diverse vendors for their ongoing and upcoming projects.

A poorly crafted document can lead to missed opportunities, while one riddled with errors can create an impression of carelessness. Therefore, it’s imperative to ensure your Capability Statement is both professionally written and aesthetically pleasing.

Here are three compelling reasons why your small business needs a top-notch one:

  1. Proof of Success: It communicates your business’s past success and experience working with larger corporations. It’s a chance to highlight your triumphs and demonstrate your understanding of corporate collaborations.

  2. Resource Demonstration: This document helps illustrate that your company has the necessary resources to execute projects effectively and efficiently. It’s an opportunity to showcase your capacity and preparedness for tackling new ventures.

  3. Brand Personality Showcase: When formatted correctly, your Capability Statement exudes confidence in your ability to deliver quality services or products. It’s a platform to infuse your brand’s personality and create a memorable impression.


Want to know the basic structure of a Capability Statement?

Click here for a Capability Statement example.

Creating this document may seem daunting initially, but it’s an investment with significant payoffs. It enhances awareness of your company’s offerings, leading to increased interest and potential business opportunities. For guidance, you can refer to a Capability Statement template or draw inspiration from Capability Statement examples and samples.

For those targeting government contracts, a tailored Capability Statement template for government contractors can be particularly useful. These templates are designed considering the specific requirements and preferences of government agencies, ensuring your document hits all the right notes.

Diverse Business


Need to get a Capability Statement done in less than a week?

Our GUIDED Capabilities Statement course is receiving tremendous praise from corporate supplier diversity outreach teams and certification councils. We have taught this method to several WBENC Regional Partner Organizations (RPOs) with stellar results! Learn more at

Writing an effective capabilities statement days , not weeks. “Watch and write” with videos, online worksheets and a printed workbook.  Doesn’t get much easier.


Capability statement template for government contractors?

Guided Business Plan was honored when several Procurement Technical Assistant Centers (PTACs) selected our book – GUIDED Business Plan™ | GovCon Primer – to teach established businesses how to prepare for contracts with airports, academic institutions and government agencies. 

Capability statement for the private sector?

Here are a few organizations you need to know if you want to do business with large corporations.

  1. Women’s Business Enterprise National Council (WBENC):

  2. National Minority Supplier Development Council (NMSDC):

  3. National LGBT Chamber of Commerce (NGLCC):

  4. National Veteran-Owned Business Association (NaVOBA):

  5. Disability:IN’s Disability-Owned Business Enterprises (DOBE):

These organizations offer certification programs for businesses owned by women, minorities, LGBTQ+ individuals, veterans, and people with disabilities respectively. They help to validate these businesses and provide them with opportunities to compete for contracts in their respective markets.

What’s your next move?

Having an effective capabilities statement is essential if you want major companies to consider working with you—and having one professionally written and designed goes even further towards helping ensure success.


Picture of Melanie Rae

Melanie Rae

At Guided Business Plan, we're passionate about empowering small businesses to reach their success destinations. That's why we offer a variety of resources, including our GUIDED Business Plan™ books, training, mentoring, business academies and GUIDED Plan with Peers™ to create a easy, simple and guided path that just about anyone can follow.

You might also like