A capability statement is a short document that tells a buyer who you are, what you supply and why you can be trusted with their work. Government agencies and large contractors often ask for one before a tender, and small businesses are usually asked for it at short notice.
What goes in one
Business Queensland's guidance sets out the core sections, and most Australian buyers expect the same shape:
- Business overview — who you are, how long you have traded, where you operate.
- Core competencies — the specific things you do well, stated plainly.
- Key personnel — the people who would actually do the work, with relevant experience.
- Products and services — what a buyer can purchase from you.
- Clients and past projects — evidence, ideally with scale and outcome.
- Contact details — including your ABN or ACN.
Optional inclusions that carry weight in procurement: accreditations and certifications, insurances, relevant policies and procedures, professional memberships, awards, client testimonials and community involvement.
Length and format
- One to two pages. Buyers skim.
- Lead with what you supply, not with your company history.
- Use the buyer's language. If the tender says "traffic management", do not write "site logistics solutions".
- Put evidence beside every claim. "Completed 14 similar installations for local councils since 2023" beats "extensive experience".
- Keep a master version, then tailor it for each opportunity.
Common mistakes
- Writing a brochure instead of a procurement document.
- Listing services with no proof you have delivered them.
- Omitting the ABN, insurances or licence numbers a procurement officer needs to verify you.
- Letting it go stale, so referees, insurances and staff no longer match reality.
- Sending the identical statement to a council, a mining contractor and a federal department.
Before you send it
- Check every certification and insurance is current.
- Confirm named referees have agreed to be named.
- Ask someone outside your business to read it and tell you what you sell. If they cannot, rewrite the first page.
A capability statement will not win a tender on its own. It gets you considered, shortlisted or invited to quote, which is the step most small businesses never reach.