Walk through the offices of some government contractors and you might find a polished lobby, a high-profile address near Washington, D.C., and brochures that suggest a much larger operation. Those signals can impress visitors. Margarita Howard decided they could wait.
When she started HX5 in 2004, Howard put her money behind operational tools that clients would rarely see. The centerpiece was an accounting system built for companies doing business with the government, one that federal reviewers had approved and that large primes and auditors already trusted.
Choosing Function First
Howard has said HX5 preferred this kind of purchase over impressive furnishings or office space. Her reasoning was practical. Government work comes with demanding billing and audit requirements, and a contractor unable to meet them will struggle to land or keep business, regardless of how its headquarters looks.
The same thinking applied throughout the company. Qualified employees came before premium locations. Compliance tools took priority over marketing. Cash reserves were preserved instead of expanding staff before the work justified it.
Many small contractors do the reverse on accounting, delaying a government-grade system for years. Because acquisition regulations require accounting adequacy only for certain contract types, startups often begin with fixed-price work and modest software. Howard believed that path limited a firm to smaller contracts and fewer partners.
Results Behind the Choice
The approach gave HX5 an early edge with large defense firms seeking small business subcontractors. Those firms saw a newcomer that could already handle complex billing and pass audits, which made teaming with HX5 straightforward.
Howard summed up the outcome of her early investments in five words: “And both highly paid off.”
The numbers support her. HX5 has grown from one employee to more than 1,000 across more than 20 states and 70 government locations. It wins work as both prime and subcontractor and has received the Prime Subcontractor of the Year award.
Margarita Howard built visible success the slow way, by first building the systems that make success possible. See related link for additional information.
Find more information about Howard on https://ritzherald.com/ceo-margarita-howards-background-shapes-hx5-approach-to-veteran-employment/
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