Margarita Howard On Building HX5 The Hard Way
Business, Executive, LeadersMargarita Howard did not build HX5 by chasing the appearance of success. She built it by solving the operational problems that keep small government contractors from winning bigger work, starting with a decision most new business owners would skip.
When HX5 launched in 2004, Margarita Howard had one employee and a limited budget. Government contracting has its own version of a starter playbook, one that often includes leasing office space in Washington, D.C. or Virginia and buying equipment meant to impress prospective clients. Howard passed on all of that.
Investing Where It Mattered
Her first major purchase was an accounting system built specifically for federal contracting, already reviewed and approved by government standards. It cost more than most small businesses spend on back office software during their first years, but Howard treated it as a requirement rather than a luxury, noting that HX5 “already had this government accounting system in place” long before it needed one for a major contract.
That early investment shaped how prime contractors viewed HX5. Large defense firms often hesitate to bring on small subcontractors who lack the administrative systems needed to handle federal billing correctly. HX5 did not have that problem, which made it an easier partner to work with even while the company was still small.
Howard has described the broader approach as building qualified teams, financial reserves, and compliance tools before expanding headcount or spending on marketing. That order of operations, infrastructure first and growth signals second, has carried HX5 from a single founder to more than 1,000 employees across more than 20 states and roughly 70 government locations today. The company now operates as both a prime contractor and a subcontractor, a range Howard attributes to groundwork laid long before HX5 won its first major deal.
Her approach was not glamorous, and it did not produce quick headlines. What it produced instead was a company that federal auditors and large primes could trust from the start, which Howard has suggested mattered more to HX5’s growth than any single contract win. Visit this page for additional information.
Find more information about Howard on https://www.margaritahoward.com/