Competing in a Crowded Marketplace: Identifying your Differentiators on Capability Statements

If you're a small business looking to win government or corporate contracts, you'll need a capability statement. A capability statement is a brief marketing document that highlights a firm's primary services and/or products to its target buyer. It communicates to a buyer that you are "procurement-ready". The statement should be direct and concise, giving a snapshot of a company's area of expertise.

One tricky part for many business owners is the development of a concise and targeted "competitive differentiation" section.

What is Competitive Differentiation? Competitive differentiation is what makes your company, product or service unique compared to your competitors. It's based on what customers value, like features, brand, price, or customer service. The key is to focus on what makes your business stand out in ways that matter to your target customers.

Common Weak Differentiators These differentiators are too vague or generic and don't clearly show what makes your business special:

• We hire only the best people: Every company claims to hire the best. Specify the unique skills or qualifications your team possesses.
• We have a unique process: Explain what this process is and why it benefits your customers more than others.
• We put the client first: Doesn't everyone? Describe how you do this in ways that are different and more effective than your competitors.
• We deliver the best client service: Define what "best" means and give examples of your superior service.
• We are committed to excellence: Show specific achievements or certifications that prove this commitment.
• We deliver innovation: Highlight specific innovations and their impact on your customers.
• We are passionate about what we do: Demonstrate how this passion translates into better results for your clients.
• We are trusted advisors: Provide examples or testimonials that show why you are trusted.

Examples of Strong Differentiators Strong differentiators are specific and clear, showing exactly how your business stands out:

• We provide accounting services to multi-location restaurants in southern Indiana and northern Kentucky: This shows a geographic focus, a clear niche and expertise.
• We specialize in restructuring and turnarounds for companies in the Indianapolis metropolitan area: This specifies both a service and a geographic focus.
• We work exclusively with Fortune 500 firms in the technology sector: Indicates a high level of experience and capability in a specific industry that is past the start-up stage.
• We are rethinking the future of healthcare in the behavioral health sector: Suggests innovative approaches and a forward-thinking mindset in an industry that is seeking new ideas.
• We are the largest accounting firm in Northwest Indiana: Highlights size and dominance in a specific area.
• We are the leading law firm for Midwest companies wanting to do business in South Africa: Combines regional expertise with international business knowledge.

Tips for Creating Your Differentiation Section

1. Stay Relevant: What makes you unique today might be standard tomorrow. Focus on how you compare to others to win contracts.
2. Show Comparisons: Customers compare options. Highlight what you do better than others to build trust and show your strengths.
3. Use Strategy: Emphasize your strengths to outperform competitors. This can make rivals' claims seem weaker.
4. Influence Decisions: Use your strengths to show why your solution is valuable. This can persuade prospects and highlight competitors' weaknesses.
5. Meet Specific Needs First: Early in the sales process, focus on how you meet specific needs. It's not about showcasing everything you offer, but showing you can meet their requirements.

By following these tips and expanding on the specifics of your differentiators, you'll be better equipped to create a compelling differentiation section in your capability statement. This will help you stand out in the competitive field of government contracting and attract more opportunities for your business.

References: MLBS, Certified Impact, HInge Marketing

Keywords: #capabilitystatement #governmentcontracting #differentiator #competitiveadvantage