Margarita Howard had limited capital when she launched HX5 in 2004, and she spent it according to a simple rule fund whatever helps the company win and deliver work, and postpone whatever only makes it look successful.
Three priorities came out of that rule. HX5 hired qualified personnel instead of renting premium offices. It bought compliance tools instead of marketing materials. And it held financial reserves instead of adding employees before the work called for them.
The Accounting Cornerstone
The best-known example is Margarita Howard‘s early purchase of a high-end accounting system created for government contractors and approved by the government. She has said HX5 chose it over expensive furniture and office space. Most small contractors take years to make a similar move, often starting with fixed-price contracts and basic bookkeeping since accounting adequacy rules cover only certain contract types.
The system cost more than typical startup back-office tools and demanded training and process changes. In return, it gave HX5 the same billing and cost-tracking capacity large contractors had. Howard said the company understood “the investments that we had to make to be successful” from the outset.
How the Priorities Paid Off
Large defense firms noticed. They often need small business subcontractors to meet goals on big government contracts, but many candidates cannot handle complex billing or pass audits. HX5 could, so primes were able to partner with it without extra supervision.
That early credibility started a cycle. Contracts produced performance history, clean audits built trust, and each new teaming relationship expanded the network around HX5. The company eventually won large prime contracts unusual for a firm its size and was named Prime Subcontractor of the Year.
HX5 today counts more than 1,000 employees working across more than 20 states and 70 government locations, managing a variety of contract types. The accounting platform that once looked extravagant now anchors those operations.
Margarita Howard’s three priorities share one idea. A government contractor earns its growth by being ready for the work before the work arrives. Refer to this article, for related information.
Learn more about HX5 on https://www.youngupstarts.com/2025/01/10/how-hx5-and-margarita-howard-stay-ahead-in-government-contracting-as-a-women-owned-firm/
