A capability statement is a short document, usually one to two pages, that tells a potential client who you are, what you do, what you've done before and why they can trust you with the job. Think of it as a résumé for your business. You'll usually need one for government tenders, supplier panels and bigger business-to-business pitches.

That's the short answer. The longer one is below, because a lot of capability statements I see are either a wall of text or a glossy brochure that forgets to say what the business actually does.

What is a capability statement used for?

Mostly two things: tenders and pitches. Business Queensland puts it simply: if you want to supply a larger organisation like government, you'll usually have to submit one, and you'll often need one when introducing yourself to new B2B clients (Business Queensland).

It's also handy to have ready for supplier registrations, directory listings and any time someone says "can you send me something about your business?" Having a decent one sitting in a folder beats scrambling at 11pm the night before a deadline.

What should a capability statement include?

Keep it to the stuff a buyer needs to make a decision. The usual sections are:

• Business overview. Two or three sentences on who you are, where you're based, how long you've been going and what you specialise in.
• Core capabilities. A short, specific list of what you do. "Commercial electrical maintenance and switchboard upgrades" beats "all electrical work."
• Past projects. A handful of relevant jobs with the scope and outcome. Tender guides consistently say this is the bit evaluators read most closely (TenderMonitor).
• Key people. Who'll actually do the work, plus their relevant experience and qualifications.
• Credentials. Licences, accreditations, insurances and memberships, if they're relevant to the work.
• Contact details. Name, phone, email, website and, importantly, your ABN. It's surprisingly easy to forget.

What to leave out? The founding story that goes for three paragraphs, the mission statement nobody remembers, and anything you can't back up. Channel your inner Marie Kondo: if it doesn't help the reader decide, thank it for its service and cut it.

How long should a capability statement be?

One to two pages for most situations. Some guides stretch that to three or four for complex technical work, but the advice is pretty consistent: if a buyer asks for a specific length, stick to it exactly (Win With Words).

A useful trick is to keep a longer master version with everything in it, then make a tight, tailored copy for each opportunity. Same base, different edit, a bit like a band playing a festival set versus the full album tour.

Is a capability statement the same as a company profile?

Not quite. A company profile is more of a story: your history, culture, values and the full range of what you do. A capability statement is a credentials document. It's there to answer one question for a busy reader: can this business do this job?

If yours has crept past eight or ten pages, it's probably turned into a company profile. Nothing wrong with having one of those too, just don't send it when someone asked for the short version.

Does the design of a capability statement matter?

Yes, but content comes first. A self-described contracting officer on Reddit put it bluntly: "I don't care about layout. I care about what it says" (r/GovernmentContracting). Fair call. No amount of nice typography will save a document that doesn't say what you do.

Where design earns its keep is in making the good stuff easy to find. Clear headings, tidy bullet points, a simple table for projects or credentials, and enough white space that the reader doesn't feel like they're doing homework. Business Queensland also recommends it looks professional and lines up with your brand, so it feels like it came from the same business as your website and proposals.

Think of a reader skimming a pile of submissions. You want yours to be the one where everything they need jumps out in a quick scan, not the one that needs a magnifying glass and a cup of tea.

Should I use a template or Canva for my capability statement?

A template is a perfectly good place to start, especially for a first version. Canva is fine for getting your thoughts into a layout, and even the WA government's guide mentions online tools like Canva for visuals (Small Business Development Corporation WA).

The thing to watch is that it ends up looking like your business, not the template's. If your colours, fonts and logo don't match the rest of your material, it can look a bit like Bingo turning up to school in Bluey's outfit: close enough, but something's off. And please, whatever you do, think twice before designing in Word. I've written about that before and I stand by every word.

Business NT's guide suggests bringing in a copywriter for the words or a graphic designer for the layout if you're short on time or confidence (Business NT). If you do go that route, a good design brief will save everyone time.

How do I make my capability statement stand out?

Be specific and be relevant. A few things that make a real difference:

• Tailor it. Put the projects most like the job you're going for at the top.
• Show, don't claim. "We delivered X for a council on time" beats "we pride ourselves on excellence."
• Keep it current. Old projects and expired insurance details are a quick way to lose trust.
• Proofread it. Then get someone else to proofread it.

It's a bit like a pitch on Shark Tank. The sharks don't want the life story, they want to know what you do, whether it works and why you're the one to back. Get to the point and let the evidence do the talking.

FAQ

Working on yours?

If you'd like a hand turning your capability statement into something that's easy to read and looks like your brand, you can find me through the contact page.