How to Write a Small Business Capability Statement

Last Updated December 30, 2025

Standing out as a small business can be challenging, and finding new clients can be even tougher. Writing a small business capability statement is one of the best moves you can make to highlight who you are, what you do, and why clients should choose to work with your company.

This statement should highlight the value your business brings to the table in a single page. It will be especially helpful for pursuing government contracts or entering a new market, where you need to highlight your differentiators quickly.

In this guide, learn what a small business capability statement is and why you need one, including the core components and an example to help you get started.

What Is a Small Business Capability Statement?

A small business capability statement is a one-page document that acts as a “resume” for your company. This concise document outlines:

• What your business does
• Its services or products
• Why your company is different

For a new or growing company, a capability statement for small business ventures is especially important. Clarifying your value before starting a business can help you go after potential clients who are the best fit for your services. Plus, a capability statement will help these clients quickly understand why you’re the best provider for the job.

Why Capability Statements Are Important for Small Businesses

A capability statement helps you communicate your value and build credibility from day one. It works in tandem with your marketing efforts to make your business look as professional as possible.

A capability statement can help you:

Clarify Your Value

Whether you’re starting a new business or plan to sell an established company, understanding what you bring to the table helps in so many ways. Not only will you better price your business during a sale, but you’ll also know how to position your company’s marketing and target the right customers.

Pursue Government Contracts

Do you plan on working for the government? Procurement officers need this document to see whether you’re qualified for a contract. Writing it now will speed up the time-consuming process of applying to be a government contractor.

Differentiate Your Company

Differentiation is one of the biggest challenges for small businesses. When potential customers shop around for a solution to their problems, they’ll evaluate how your company stacks up against other providers. A small business capability statement clearly spells out your unique selling proposition (USP), which will help you target the right customers for your offering.

Forge Customer Relationships

A small business capability statement can open more doors when you’re just starting out. It helps prospective clients quickly understand whether what you offer aligns with their needs, which is key when you’re building relationships with customers.

Key Components of a Small Business Capability Statement

A small business capability statement is a concise, one-page document. Make sure you touch on these components in your statement, but keep it short enough so the text is easy to skim.

Company Overview

Start with a brief snapshot of your business. Explain who you are, what you do, who you serve, and your mission or purpose. Keep this overview around 100 words, focusing less on your history and more on the problem you solve for your customers.

Core Competencies

Under this section, you list your main skills, services, or products (usually as skimmable bullet points). Detailing your core competencies helps a potential customer immediately see what you offer and what you do best. Small businesses grow fast, so update this section as you get more experience, clients, or services under your belt.

Past Performance

Your capability statement should highlight how the small business has grown over time. In this section, detail your:

• Completed projects
• Client success stories
• Case studies

When possible, share quantifiable results and performance gains. Potential clients want to see the results you can get, and this section will establish trust in your skills.

Differentiators

A small business will fail if it just copies what its competitors are doing. Your small business capability statement should explain why your company is different from the competition.

Everyone’s differentiator is unique, whether it’s in terms of:

• Quality
• Rapid turnaround
• Unique or patented features
• Special expertise or staff

Choose one main differentiator and lean into that in this section. You also need evidence proving that you’re actually unique, though. Add quantitative data about your performance or patent information that proves you’re unique.

Certifications and Accreditations

Skip this section if you don’t have any certifications or accreditations. But if your company holds any special certifications, licenses, or recognized accreditations, these belong in your capability statement, too. Credentials make your company more legitimate, especially if you want to work with government agencies or in regulated industries.

Contact Information

Finally, make sure your contact information is front and center. This makes it much easier for interested readers to get in touch if they want more information. Include a contact name, email, phone number, and website.

How to Write a Small Business Capability Statement

A clear, well-structured business capability statement helps your company stand out and makes it easy for potential clients to understand your strengths. Follow these steps to write a succinct small business capability statement.

1. Value Comes First

It’s tempting to write a novel about your company history, but that isn’t the purpose of a capability statement. The goal is to communicate value. Before drafting anything, define the primary message you want your audience to walk away with. What should they remember about your business?

2. Write for Your Audience

Who will be reading this capability statement? Tailor your language, examples, and features based on your target buyer. Avoid jargon unless your audience expects it.

You should write separate small business capability statements for different types of buyers. It takes more effort, but customizing statements for different audiences will help you create a tailored experience that’s much more persuasive.

3. Format for Skimming

Decision-makers spend just seconds assessing capability statements. Prioritize clarity and scannability for these readers. Use short paragraphs, punchy bullets, and clean formatting. Consider bolding key points to guide the reader’s eyes down the page.

4. Provide Evidence

The person reading your capability statement isn’t familiar with your business. They may be skeptical of your claims, so it’s crucial to include proof if you have it. Support your statements with numbers, outcomes, examples, or customer testimonials.

5. Update as Needed

Your business will change over time. Revisit and update your small business capability statement twice a year. Add new experiences, services, client results, or certifications. This is also a good time to refine your positioning, especially if you’ve made changes in the last few months.

Example of a Small Business Capability Statement

Here’s what a capability statement might look like for a new business

Company Overview

BrightPath Digital Solutions is a woman-owned marketing consultancy that helps small and mid-sized businesses increase visibility, generate qualified leads, and convert traffic into revenue through data-driven digital strategies. We specialize in practical, results-focused marketing that supports long-term growth without unnecessary complexity.

Core Competencies

• Digital marketing strategy and execution
• Search engine optimization and content marketing
• Paid advertising management across Google and social platforms
• Website optimization and conversion rate improvement
• Marketing analytics and performance reporting

Past Performance

• Increased organic website traffic by 65 percent for a regional service provider within six months
• Generated a 40 percent increase in qualified leads for a B2B client through targeted paid campaigns
• Supported three startups in launching full-funnel marketing strategies that led to consistent monthly revenue growth

Differentiators

BrightPath Digital Solutions combines hands-on execution with strategic insight, delivering measurable results quickly while maintaining transparent communication and clear reporting at every stage. Clients work directly with senior-level marketers rather than being passed to junior staff, ensuring accountability and consistent quality.

Certifications and Accreditations

• Google Ads Certified
• HubSpot Content Marketing Certified
• Certified Woman-Owned Small Business

Contact Information

Jane Doe, Founder and Principal Consultant
Email: jane@brightpathdigital.com

Phone: (555) 123-4567
Website: www.brightpathdigital.com

Other Considerations When Writing a Business Capability Statement

Including the right information will help you learn how to write a small business capability statement, but that’s just the beginning. There are a lot of considerations to factor in, from your chosen vocabulary to the practicalities of sending files to clients. Follow these guidelines to maximize the value of your capability statement:

• Watch your tone: Aligning your style with industry norms strengthens credibility. For example, a tech startup may use more inspirational and innovative messaging, while a construction or logistics company should prioritize clarity and straight talk.
• Avoid cluttered design or visual noise: Overusing graphics, colors, or excessive formatting can distract from the substance of your capability statement. Design elements should highlight your business’s strengths, not distract from the copy.
• Be mindful of file size and format: Many procurement portals limit attachment sizes or require specific formats. A compact PDF ensures your capability statement is easy to upload and share. It also prevents anyone from editing the document after you send it.
• Check for consistency across platforms: Inconsistency can weaken trust. Your website, proposals, pitch decks, and capability statement should all reinforce the same strengths and messaging. When you review your statement twice a year, double-check these platforms to ensure consistency.
• Prepare talking points based on your statement: You or your team may be asked to elaborate on anything you’ve included in the document. Be ready to discuss your differentiators, experience, or competencies to prove you know what you’re talking about.
• Make it easy to update: Keep a working file or template so you can quickly revise your statement as your business grows. This is especially important for anyone developing a capability statement for a new business that will evolve quickly.

In-Summary: Small Business Capability Statements

A small business capability statement is just one of many strategic tools you can use to promote your business. Whether you’re a new company trying to establish credibility or a growing business preparing to pitch larger clients, a capability statement clarifies what you bring to the table.

Remember to refine your capability statement over time as your business evolves. It should support you as you pursue new opportunities. Add a small business capability statement to your marketing and sales arsenal to transform first impressions into long-term contracts.

Michael McCareins

Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.