Margarita Howard Built HX5 on Back-Office Discipline
When Margarita Howard launched HX5 in 2004, the company had one employee and limited cash. She spent that cash in an unusual place. Rather than leasing an impressive office or furnishing a showroom for client visits, Howard bought a costly accounting system designed specifically for firms that bill the federal government.
The choice set the tone for how HX5 would grow. Many new contractors spend early money on things that look good to visitors. Howard wanted tools that would let her company compete for real work, and she described the purchase as a “high-end accounting system” that the government had reviewed and approved.
Why the System Mattered
Federal rules do not force every small contractor to buy specialized accounting software. The Small Business Administration recommends systems that can satisfy federal compliance standards, while acquisition regulations govern accounting adequacy only for certain contract types. Plenty of startups therefore begin with basic bookkeeping and chase fixed-price jobs, upgrading later once revenue or contract terms require it.
Howard skipped that waiting period. Her system was one that government auditors and large prime contractors already knew well, and it cost more than most young companies would budget for back-office needs.
The payoff came through partnerships. Big defense firms that need small business subcontractors often struggle to find partners capable of handling complex billing, separating costs correctly, and surviving audits. HX5 arrived with that capability already in place. Primes could team with the company without worrying that a junior partner would create billing disputes or stumble through compliance reviews.
From One Employee to More Than 1,000
Today HX5 employs more than 1,000 people across more than 20 states and 70 government locations. It works as both a prime contractor and a subcontractor, has captured large prime contracts that are unusual for a company its size, and has been named Prime Subcontractor of the Year.
Howard credits early preparation for much of that result. Reflecting on the infrastructure decisions she made at the start, she said, “And both highly paid off.” For Margarita Howard, the lesson is that a contractor should prove it can handle government work before trying to look like a large company. Refer to this article, for related information.
Learn more about HX5 on https://www.f6s.com/member/margarita-howard