When Margarita Howard founded HX5 in 2004, she faced the same question every new government contractor does: where does the startup capital go first? Many founders in her position chose visible markers of success prominent office space in Virginia or Washington, D.C., polished furniture, and professional lobbies designed to impress potential clients. Howard chose differently.

From the outset, she directed HX5’s limited resources toward a specialized accounting system built and approved specifically for government contractors. The software cost more than most small businesses would spend on back-office systems during their startup phase, but Howard saw it as essential rather than optional.

Early Infrastructure

“That’s something HX5 did very early on rather than buying big fancy furniture or offices or anything like that,” Howard said. “It was more important for us that we invest in things like a high-end accounting system that was built and developed specifically for companies who work with the government, and was government reviewed and approved.”

The reasoning was straightforward: government auditors and large prime contractors recognized the system on sight. For a small company with no track record, using infrastructure already trusted by the people awarding contracts eliminated a significant credibility barrier.

Large defense primes seeking small business subcontractors routinely encountered the same obstacle. Qualified small businesses often lacked the administrative infrastructure to handle complex billing, maintain proper cost segregation, or survive the audits that government contracts required. HX5 arrived at the table without that problem.

Margarita Howard prioritized investments that would enable HX5 to compete and win work not investments that would make the company look successful before it had earned that status. That distinction, made clearly in HX5’s earliest days, shaped how the company grew into a contractor employing over 1,000 people across 34 states and 90 government locations. Refer to this article, for related information.

Find more information about Margarita Howard and HX5 on https://www.f6s.com/member/margarita-howard