What Everyone Should Know About Capability Statements
When Opportunity meets Preparation she greets her with open arms and they both say in unison, ‘Let’s do this!’
Sanjo Jendayi
As the owner of a construction business you understand that the basic business development cycle that leads to a project contract is:
- identifying good relevant opportunities
- establishing relationships and credibility with the owner and/or agency
- making sure you meet bidding requirements
- submitting a complete bid on time, and hopefully, receiving the great news that your bid has been selected, and your company will receive an award
If your background as an owner is primarily having worked in construction trades, the one-step listed above that you may not be as comfortable with is establishing relationships with the owner and/or agency. You’re not alone.
Many owners start with performing jobs based entirely on work they performed while working for others, then breaking off and starting their own company. Over time, there is a need to expand beyond the folks you’ve previously done business with and bid to unknown owners and/or agencies in order to grow and strengthen your company.
If you attend any number of construction or business diversity fairs held in your state, you can imagine how many vendors owner representatives will meet at that event. Typically somewhere between 20 and 100!
How are you going to stand out? What is going to help that owner’s rep remember your company?
Leave something behind to distinguish your company and services from others
A capability statement is a detailed, succinct statement of what your business has done, is prepared to do and is capable of doing. It does all this in an industry-recognized format so that anyone who is interested in what your business has all the relevant facts in a well-organized one to two-page document.
In short, a capability statement is a resume for your business. This resume must stand out from all the others. It must get the attention of not only the owner’s rep, but also the purchasing officers he or she will share it with.
Developing your company capability statement – What to include
Company Summary – introduce yourself, being mindful of what will matter to your audience. Give a short, high-altitude overview of your company is and what you’re about.
Core Competencies – this should not be everything your business is able to do. Use bullet points and short statements of your expertise as it relates to your target agency’s specific needs.
Differentiators – list unique factors and benefits of your products or services that set you apart from the competition. How is your business best suited for the needs of the targeted agency? A clear statement that relates to the specific needs of the agency can help the customer understand why they should choose your firm.
Performance – list past customers for whom you have done similar work, show benefit to the customer and provide contact reference. Pictures are worth a thousand words and save space if relevant. If past projects do not relate to the targeted agency’s needs, do not list them.
Company data – include one or two short sentences of your company description, including number of employees and capacity. Also list DUNS, CAGE Code, NAICS codes, and any set-aside eligibility that your business holds, such as Small Disadvantaged Business (SDB), Women-Owned Small Business (WOSB), 8(a) Certification, HUBZone, or Small Disadvantaged Veteran-Owned Small Business (SDVOSB).
Contact information – show contact information, including website and specific person’s name. Readers will visit your website for more information; make sure it is constantly updated and provide “hot link” for direct access. List a professional email. Government agencies many times block Hotmail, Yahoo, and Gmail accounts as junk mail. Your internet provider will typically offer professional addresses with your subscription.
Take care before you share
Have a different set of eyes look over the finished product to proof-read your capability statement and give feedback before sharing with your potential customers. It could also be helpful to compare your capability statement to other good examples. But most importantly, be sure to check spelling and grammar!
It will take about a week of work – off and on – to complete a well-organized, clear, and impactful capability statement. But it will be well worth your time and effort.
Remember your goal is to make it easy to see how great you are and beneficial it will be to those who work with your company.
Have questions or need further help to create your company’s capability statement? Contact us and we’ll schedule a consultation call to get you started on the right foot.