I’m guessing that 90% of America has entered a McDonald’s and stood looking at the menu marquee before selecting. The raised block letters have evolved into digital signage promoting variations on burgers, fries, and a drink. This everyday scene is actually a great way to think about how Capability Statements work in the business world.

There are so many Capability Statements to review…

Picture your corporate buyer standing in front of a menu marquee that features a small number of vendors. The headline of each business is on that “marquee” and the buyer skims through to see which ones they want to learn more about to figure out what they want to order. In this case, think of your business as one of those menu items. Your Capability Statement? That’s the mouthwatering description that makes the buyer want to pick you over your competitors. 

Your Capabilities Statement, a concise 1-page document, is like a menu for a prospective buyer. They glance over it to see what catches their eye, then zero in on what piques their interest. It’s your chance to make a strong first impression and clearly communicate what your business can offer.

For small business owners who are looking to partner with Fortune 500 companies, one of the requirements is usually the submission of a Capabilities Statement. This document serves as an introduction to your company and allows potential customers to quickly assess what you can offer them. In today’s fast-paced business environment, where decision-makers are often pressed for time, a well-crafted Capability Statement can be the difference between landing a contract and being overlooked.

A well-written and designed Capabilities Statement is vital for gaining the attention of decision makers, so it’s important that you get it right. It should be clear, concise, and tailored to your target audience.

Remember, you’re not just listing your services – you’re telling your company’s story and demonstrating your value proposition.

Grab our cheat sheet – a Quick Reference Guide with 7 Steps to Make It Happen

Like an elevator pitch for your business, a Capabilities Statement provides a summary of what you can offer, formatted into standard sections such as Core Competencies, Industry Codes and Past Performance. This format makes it easy for potential clients to quickly find the information they’re looking for and compare your offerings with those of other vendors.

Generally, you will be asked to submit this document at business matchmaking events when Supplier Diversity & Inclusion professionals are searching for diverse vendors for their current and future projects. These events are excellent opportunities to get your foot in the door with large corporations, but the competition can be fierce. So, a well-crafted Capability Statement can help you stand out from the crowd.

A poorly written or designed Capabilities Statement makes it easier for prospects to say no, while one riddled with typos shows that you don’t really “pay atention to details” (see what I did there?). Attention to detail is crucial in business, and your Capability Statement is often your first chance to demonstrate your professionalism and competence.

It highlights the services and/or products your business can provide and gives prospective customers, especially CORPORATIONS, the information they need to decide whether to work with you. It tells potential clients who you are, what you do, and how you are different from your competitors. In essence, it’s your chance to make a compelling case for why a company should choose to do business with you.

By presenting your company in a Capability Statement, you increase your chance of landing contracts or attracting new customers. It’s a proactive approach to business development that can open doors to new opportunities. Someone recently said, “I get steady work and I haven’t been asked for a Capabilities Statement.” Just keep in mind the saying “be ready so you don’t have to get ready.” 

If you are looking to expand to work with Fortune 1000 companies, many of them will ask for one to get an idea of how your company can offer value.

Here are some tips to make sure your Capabilities Statement is clear and concise. The key is making it easy for the person who will be reading them!

Use simple language so that anyone can understand what you’re saying- even if they don’t have any knowledge of how you operate. 

Avoid industry jargon unless it’s necessary. Remember, your goal is to communicate your value clearly, not to impress with complex terminology.

Key sections to include in your Capability Statement: Headline/Unique Value Proposition Company Description Differentiators Core Competences Industry Codes Certifications Past Performance/Past Clients Images: founder’s/salesperson’s image Other relevant information.

Each of these sections plays a crucial role in painting a comprehensive picture of your business. 

Your headline should grab attention and clearly state your unique value proposition. The company description should be concise but informative, giving readers a clear understanding of what your business does. 

Differentiators are crucial – this is where you explain what sets you apart from your competitors. Core competencies highlight your key strengths and capabilities, while industry codes help categorize your business. 

Certifications can lend credibility, and past performance demonstrates your track record of success.

Even if this is not common practice in your country, it’s a good idea to create a summary of your business with this format. You never know when a global giant sets up shop in your city. In our increasingly interconnected global economy, being prepared with a Capability Statement can give you a competitive edge, even if it’s not yet standard practice in your local market.

With unprecedented trillions of dollars in contracts in the United States, you can’t risk having a poor introduction. Your Capability Statement is often your first chance to make an impression on potential clients, and in a competitive market, you need every advantage you can get. 

Join us for FREE masterclass each week to improve your Capability Statement headline and increase your chances of success. It’s an excellent opportunity to refine your document and gain insights into what large corporations are looking for.

Join our Capabilities Statement masterclass via Zoom 

Don’t miss this opportunity to get expert feedback on your Capability Statement. Whether you’re just starting to draft your statement or looking to refine an existing one, these sessions can provide valuable insights to help you create a more effective document.

Guided Business Plan is an entrepreneur education firm empowering small businesses to reach their success destinations with GUIDED Business Plan™ books, training, mentoring and business academies. We understand the challenges that small businesses face when trying to break into larger markets, and we’re here to help you navigate those challenges successfully.

Remember, your Capability Statement is more than just a document – it’s a powerful tool in your business development arsenal. 

Invest the time to create a strong, compelling Capability Statement, and you’ll be well-positioned to seize new opportunities and grow your business.

—

Melanie Rae is the author and creator of the GUIDED Business Plan™ national training platform that has empowered thousands of business owners. The company now hosts GUIDED Academy, an on-demand e-learning platform that also have live workshops led by Melanie and seasoned guides. Babson College, the number one entrepreneur school in the world has praised her Capability Statement course.

LinkedIn – https://www.linkedin.com/in/melanieraegbp/

Guided Business Plan proudly hosts our online classroom on Zenler.

This article may contain links to promotional content and/or affiliate links, from which we may receive a commission.