Why Your Business Needs a Capability Statement - Even If You’re Just Starting Out
If you’re serious about landing government contracts, corporate partnerships, or B2B deals, there’s one document you must have in your toolkit:
The Capability Statement.
Think of it as your business résumé. It’s a concise, professionally formatted document that tells decision-makers exactly who you are, what you do, and why they should trust you to do the job.
What Is a Capability Statement?
A capability statement is a one-page marketing document that highlights your:
- Core competencies (what you do best)
- Past performance (proof you can deliver)
- Differentiators (why you stand out)
- Company data (DUNS/CAGE codes, certifications, NAICS codes)
- Contact information
It’s designed specifically for procurement officers, contracting officers, corporate buyers, and anyone making a decision about whether your business can deliver.
Why It Matters
You may think, “I’ll just send over my website or a business card.” But that’s not enough in the world of government contracting or corporate supplier diversity. These buyers want to see your business at a glance, and they’re used to seeing capability statements. If you don’t have one, you’re already at a disadvantage.
Here’s why it’s important:
You Look Prepared and Professional - Having a well-designed capability statement signals that you understand how the contracting process works. It sets you apart from hobbyists or side hustlers and places you in the category of a prepared, scalable business.
You Get Taken Seriously - Especially for small, minority-, veteran-, or woman-owned businesses, a capability statement validates your business as a real contender. It helps level the playing field with larger companies who already know how to speak the procurement language.
It Opens Doors - Some agencies or corporations won’t even talk to you without one. Whether you’re attending a matchmaking event, responding to an RFP, or just doing outreach, a capability statement gets your foot in the door.
It Keeps You Focused - Clarifying your core competencies and differentiators forces you to get clear on your niche. That clarity is gold when you’re marketing your business, pitching clients, or identifying growth opportunities.
When Do You Use It?
- Submitting to contracting officers
- Attending industry day events
- Uploading to supplier portals
- Responding to RFPs or RFQs
- Email introductions to potential partners
- Local city, state, and federal procurement outreach
- Prime contractor introductions
What Makes a Good Capability Statement?
- One page (yes, keep it tight)
- Visually clean, not overcrowded
- Clearly defined core competencies in bullet points
- Differentiators that focus on value, not fluff
- Accurate and updated company data (certifications, codes, etc.)
- Professional branding that aligns with your other materials
Even if you’re not bidding on contracts yet, start now. Because when that opportunity lands in your inbox, you don’t want to be scrambling to pull something together last-minute.