How To Create a Winning Capability Statement For Government Contractors
(Sample From HHS.gov included)
So, you’re ready to begin introducing your small business to potential prime contractors, agencies, or teaming partners. You need marketing materials to sell your product and services. How you do that is with a capability statement. A compelling capability statement differentiates your company from the competition and showcases your past experience to show what you can do. A personalized capability statement is a key to ‘marketing’ your company for opening new doors and ultimately providing details on whether to do business with your firm.
What is a Capability Statement?
A Capability Statement is simply a document that states what services you offer, your past performance as a business, and all of your federal and local information. Writing a winning capability statement requires as much information about your services as possible.Â
Think of it as a resume for your business.
Now that you know your business must have a capability statement, let’s learn how to create a winning one step by step!
Step 1: Visit The Agency or Prime Contractors’ Website
Each federal agency has the information you need, telling you how to write a business capability statement to work with them.Â
HHS.gov has a free sample of a remarkable capability statement. This is a common starting point you should use regarding the structure and content of your capability statement.
Step 2: A Strong Introduction
The start of your capability statement should be a solid introduction to your business. A strong introduction gives a basic overview of your business.Â
In simple two to four sentences, state an overview of your company and its mission statement.Â
This portion of your capability statement should be clear and concise.
Next, tell what differentiates you from the competition.
Extra Tip For A Winning Capability Statement
Tailor and personalize your capability statement for each agency. If different agencies require different services, show only the services you can provide for the agency.
Step 3: Differentiators
The differentiators are what set small businesses and entrepreneurs apart from the competition.
In the sample, they listed their differences from the competition. Take inspiration from the example and list your capabilities and services in bullet points.
Note to write only some of the capabilities you have. Listing your most specialized areas shows your business excels at its services and provokes more trust in your abilities.Â
So, list one to four of your small business’ core capabilities.
Next, state the services you provide and an overview of what these services include.
Readability is critical with any document, so list these points in bullet points if you can.
Step 4: Listing Your Certifications & Registrations
Now that you’ve written a strong introduction and what sets you apart from others, you need to list your certifications and registrations.Â
List these with bullet points. If it’s a long list, try grouping the bullet points like in this photo below.
Readability is paramount with any document in government contracting. All of your information must be convenient to find and read.Â
Step 5: Spotlight Your Past Performance
List your most important commercial and government clients, with the year as a reference.
Make sure to add the following:
- Major clients
- Local agencies served
- Quasi agencies served
- Non-government agencies served
To add more visual appeal, add your client’s logos instead. Look at this sample from Integrated Federal Solutions.
Step 6: All Codes
Each industry has different identifying codes to describe its products and services.Â
Include these codes:
- NAICS (North American Industry Classification System) alternate website
- SIC (Standard Industrial Code)
- PSC (Product Service Code)
Step 7: General & Contact Information
All the general information about business goes here.Â
Add all of the following:
- Registered business nameÂ
- DBA (Doing Business As)
- Year of incorporation
- State of incorporation
- Corporation type
- UEID (D-U-N-S) number
- CAGE (Commercial and Government Entity Code)
- Tax ID (EIN)
- Contact information
- Company website
Leave your business email and your business phone number, not a personal Gmail or Yahoo account.
Step 8: Clean & Quality Graphics
Now it’s time to personalize your small business’ capability statement.Â
This can be achieved either with a freelancer from Upwork, Fiverr, or if you know someone good with graphic design.Â
Or, you can design your own for free using Canva.com. There are plenty of free tutorials online to get you design your professional and polished capability statement in no time.
Additionally, keep your capability statement one (1) page. Use both sides of the page.
Step 9: Watch Our Short yet Detailed Training Videos
This video we’ve made just for small businesses covers more about the importance of a capability statement.Â
We break down, even more, each step of the way to help you feel confident while getting ready to do business!
Summary
A capability statement is like a resume for your business.Â
It should include all of your past performance with local and federal agencies and clearly state your state and federal codes, business information, and contact information. It should be customized for each agency and highlight only the narrow specialties in which you are the best.Â
It’ll be more effective if you polish your capability statement with good graphics from a freelancer, professional, or using a free program like Canva. Your logo, your business’ branding colors, and more to let your capability statement speak for itself.
Now you’re prepared to do business with the government! We recommend reading our blogs and subscribing to our YouTube channel for free training materials.
We want to give you a wealth of knowledge so your small business can succeed in winning business with the government.
Stick around for our next blog post explaining the contract vehicle!
Furthermore, to start your small business and to understand more about working with the Government as a Subcontractor, here are your FREE quick start guides to help you reach your business goals! Get yours now!
