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Government Sales: How To Create An Effective Capability Statement

Updated: Sep 19, 2023

An effective capability statement is a marketing document and a company biography compiled into one. In simple terms, a capability statement is essentially similar to a professional CV or profile in that you want to provide crucial information that the contracting expert will use to decide whether to look further into your company and products.

A capability statement should be clear, simple, and dynamic. A capability statement must be written with a purpose which is to promote your company to government contracting specialists who are in charge of the market research.

While relationships and networking are important for public sector business development, you must also make sure that your company's information is easily accessible and understandable when potential customers are looking for new companies to partner with on upcoming contracts.

Looking deeper into this matter, what are the essential aspects to create an effective capability statement? Let's look at why a government capability statement is necessary, what should be included, and how to create your own dynamic capability statement to address that question.

Why having a good capability statement is important?

A capability statement is a single, easy-to-digest page that offers highly relevant information about your company in a clear, simple, and dynamic manner.

Essentially, government buyers will not award you a contract based on the contents of your proposal, but they must first assess that your company possesses the qualification to be a potential supplier and decide if your capabilities are sufficient to fulfil a contract.

You'll need a clear and succinct capabilities statement that you can easily convey to potential teaming partners as well as government officials. During the sales cycle within the public procurement, details such as whether your company has a specific socioeconomic designation or resells a specific manufacturer's product can spell the difference between getting a follow-up for the potential contact or essentially being ruled out.

For strategic market research, a government contracting specialist might keep a dossier of capability statements, especially if they're looking at an entire industry. For the purposes of future subcontracting, a teaming partner may want to identify all small firms that have a given capability, product, or socioeconomic designation.

Having a capacity statement on hand can lead to a future conversation, regardless of the goal. Not all of these transactions will result in business — in fact, only a small percentage of them will – but if you don't have a clear capability statement, none of them will convert.

How to create a government capability for your government business

When writing your government capabilities statement, you must keep the following parameters in mind which are:

  1. Make all data and information consisted in the file appealing to the eye of the reader. Keep in mind that government contracting specialists and possible teaming partners receive hundreds of proposals and if you can make yours stand out from the crowd, you'll have a better chance of it being selected.

  2. Keep it to one page. You can have a front and back, but if you find yourself wanting extra pages, you aren't adhering to our advice to keep it short.

  3. Use bullets, tables, and featured sections to organize your content. These strategies will make your capability statement more legible, which is critical; as we previously stated, you must make your capability statement easy to scan so that a trained eye can see what they're looking for in each statement.

  4. Proofread your document thoroughly. This is not the place to make a thoughtless or foolish error. A mistake on such a crucial document will cast doubt on your integrity and attention to detail, which is not the kind of first impression you want to make.

Create a short word document that covers each of the components before diving into the design and structure of your capabilities statement. To add information, use bullet points, and then have someone eligible to read and also provide input. This is critical because you may become so absorbed in the process of production that you overlook evident flaws or holes in the information you supply.

After you've gone through the reviewing process, you're ready to create a professional competency statement that will help your company prosper. Nonetheless, to make sure your government capability statement is fully eligible according to the official requirement and meeting the expectations, it is advisable and highly recommended to collaborate with a Business to Government consulting firm such as Premium B2G. Premium B2G has been a trusted partner to organisations pursuing Government & Defence market opportunities since its creation. With our proven methodology for identifying and winning business at every level, rest assured your capability statement will be prepared professionally.

Important elements for a clear and effective capability statements

A capabilities statement is a picture of your company that communicates the products and services you offer, as well as essential demographic information that government buyers and teaming partners need to know.

A more established company may have a capability statement for each of its lines of activity. If you're just getting started, one capability statement will suffice, but there's no reason you can't add more in the future as your business grows. Simply ensure that your version(s) contains all of the necessary information, and you'll be OK.

Elements you should include in your capability statement:

  1. Company name - including a tagline, slogan or branding messaging can be beneficial but keep it short for one or two lines only.

  2. Summary description - describe the overall overview of your company in two or three sentences.

  3. Core capabilities - a few high-level bullet points that clearly describe what your company essentially produces.

  4. Major service offerings - describe the type of product or services your company is making plus if you have multiple service lines.

  5. Business certification - if you have in order to strengthen your qualification.

  6. Contracting vehicles - A contract vehicle is a streamlined method the government uses to buy goods and services.

  7. Past experience - If you have any transactional history or a track record of previous performance for any client, include it here so that potential clients will see you as a viable business.

  8. Industry testimonials - highlight the positive experiences of existing customers that will provide insight for prospective customers who look online before purchasing a product or service.

  9. General business information - on your capabilities statement, you'll want to include a reference containing demographic information such as corporation type, registered company name, link to your website, etc.

To gain more knowledge and direct assistance concerning launching your government market journey, creating an effective capability statement and building significant growth for your government business, contact us at We are here to help with your government strategy and government business development.


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