HX5 now has more than 1,000 employees spread across more than 20 states and 70 government locations. In 2004, it had one. Founder Margarita Howard links much of that growth to a purchase she made before the company had won any major contract.

That purchase was an accounting system built for businesses that work with the federal government. It was government reviewed and approved, and it was the kind of platform large defense contractors already used. For a startup, the price was steep. Howard bought it anyway.

Credibility Before Contracts

The system’s early value came less from internal bookkeeping and more from how it changed outside perceptions. Large prime contractors regularly look for small business subcontractors, partly to satisfy small business goals tied to big government contracts. Their frequent problem is that capable small firms often cannot manage complex billing, keep costs properly separated, or pass required audits.

HX5 could. That readiness signaled that the young company understood the operational side of government contracting before it had a long track record to prove it. Margarita Howard said the system “made HX5 very attractive to large businesses” seeking small partners.

Momentum Over Time

The advantage built on itself. Each contract produced performance history. Each passed audit strengthened the company’s reputation. Each partnership with a major prime widened its network.

Today HX5 operates in both directions, serving as prime contractor on some programs and subcontractor on others. It has secured large prime contracts that companies of its size seldom win, and it counts large businesses among its own subcontractors. It has also been named Prime Subcontractor of the Year.

“We have won some very large prime contracts,” Howard said, describing a company that is also a strong subcontractor.

The accounting system that once looked like an extravagance for a one-person firm became core infrastructure for a mid-sized contractor juggling many contract types across many states. Margarita Howard’s early bet on operations, rather than appearances, gave HX5 room to compete for work most new contractors cannot reach. Visit this page for more information.

Find more information about Howard on https://homebusinessmag.com/success-stories-lifestyles/defense-contractors-margarita-howard-adapts-gen-z-amid-competition-stem-talent/