Writing a Capability Statement for a Small Business

A capability statement should explain what a business can deliver and provide evidence relevant to the buyer’s need. Keep it specific, current and truthful rather than filling the document with broad claims about being the best provider.

It is a business capability document, not proof of approval, accreditation or a contract. Do not imply an employer, government or Games relationship that has not been established.

A person holds a booklet of work photos beside a cleaning trolley and a parked floor-cleaning machine.
Illustrative AI-generated scene.

Start with the buyer’s requirement

Identify the products or services the business actually provides, the relevant delivery scope and the buyer’s requested format or criteria. A general statement may need adaptation for a specific invitation.

Business Queensland’s capability-statement guidance discusses using the document in business-to-business marketing and tender responses. Follow the actual buyer’s instructions when a particular document is required.

Distinguish work the business has completed from a proposed service it is preparing to offer. Future capability should not be presented as operational experience.

Use a practical evidence structure

Include relevant information such as:

  • Identity: accurate business and contact details.
  • Service: clear description of what the business delivers.
  • Capability: people, resources and processes genuinely available.
  • Evidence: appropriate project or work examples and their scope.
  • Credentials: current relevant approvals or qualifications, with accurate limitations.
  • Capacity: delivery information supported by actual resources and commitments.
  • Contact: authorised person for a business enquiry.

Use only claims that can be substantiated. A logo, photograph or client name may need permission and should not imply an endorsement beyond the actual relationship.

A fictional capability example

In this original invented example, a small administration service describes preparing internal procedure documents for local organisations. Its example explains the assignment, the documents produced and the review process completed.

It does not claim to have operated a client’s whole business or delivered official major-event systems when its work concerned a limited document task. Any fictional example used for practice is labelled fictional and removed or replaced with verified evidence before real marketing use.

The business describes current resources separately from a proposal to engage additional support. It does not list another provider as a committed partner without an actual arrangement.

Keep results and credentials accurate

Where a result is measurable, record its source and the business’s contribution. Do not invent percentages, savings or customer outcomes to make a case study sound stronger.

Check credential names, issuing bodies, scope and currency. An employee’s qualification should not automatically be represented as a business-wide certification or authority to undertake every related activity.

If a required capability is not yet established, decide whether the business can respond truthfully through the actual procurement process. A polished statement cannot resolve a missing mandatory requirement.

Review presentation and reuse

Make the document easy to scan, with clear service descriptions and relevant evidence. Keep a version owner and review date so old contact details or expired claims do not continue circulating.

Before sending, check the buyer’s format, length and submission instructions. Retain the version supplied. A useful capability statement gives a reviewer an accurate basis for a further enquiry or assessment, with claims the business can explain and support.

For broader commercial preparation, see planning for local-business opportunities, keeping potential demand separate from confirmed customers and contracts.

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