There is a common misconception that small businesses must prove themselves through wins before they can invest in serious infrastructure. Margarita Howard took the opposite view at HX5. The company built its operational foundation before its contract portfolio justified it and that sequencing gave HX5 a durably competitive position in federal markets from the start.
Government Accounting: A Barrier Turned Into an Advantage
Accounting systems designed for government contracting are not cheap. They cost more than off-the-shelf business software, require specialized knowledge to operate, and create ongoing maintenance obligations. For many small contractors, these costs feel prohibitive early in a company’s life. Howard made the investment, anyway, treating the cost as the price of admission to the kinds of contracts and partnerships HX5 wanted to pursue. “Right from the beginning, we invested heavily upfront in purchasing and implementing a specialized accounting system developed for government service contracting firms,” she recalled.
That system carried government recognition from the outset. It was familiar to federal agencies and gave HX5 the tools to pass billing audits and secure government approval for contract performance. For large prime contractors seeking small business teaming partners, HX5’s billing infrastructure removed a typical concern that a small partner would create compliance headaches. Margarita Howard had anticipated that concern and eliminated it before it could cost HX5 an opportunity.
Patience Rewarded Over Time
The patience required to build before competing is not easy when resources are limited. Howard acknowledged that the SBA makes such investments a recommendation, not a requirement. HX5 followed the recommendation and accepted the associated risk. “It was a risk that we took and it highly paid off,” Howard said. That payoff can be measured in HX5’s growth to more than 1,000 employees supporting NASA and the Department of Defense across 90 government locations, with Margarita Howard at the helm. Read this article for additional information.
Find more information about Howard on https://about.me/margaritahoward
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