Many government contractors starting out in the competitive federal market focus on looking the part: premium office space in the D.C. area, polished lobbies, high-end conference rooms. Margarita Howard rejected that logic when she founded HX5 in 2004. Her investment priorities went to operational systems specifically, a government-approved accounting platform purpose-built for contractors who work with federal agencies.
Prioritizing What Partners Actually Need
The calculus behind Margarita Howard’s choice had everything to do with what large prime contractors and government agencies actually look for in a teaming partner. Impressive offices do not pass billing audits. They do not demonstrate familiarity with government procurement documentation or compliance requirements. A government-reviewed accounting system does. “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,” Howard explained.
The investment paid dividends quickly. Large businesses evaluating HX5 as a potential subcontractor discovered that despite the company’s small size, it already operated with the same billing infrastructure those large firms used. That consistency eliminated a common objection to working with newer, smaller contractors. “That was one aspect that made HX5 very attractive to large businesses who were looking to partner with small businesses to meet their small business goals,” Howard noted, describing how the accounting investment worked as an indirect business development tool.
A Risk That Paid Off
Howard acknowledged the decision carried genuine risk. The SBA recommends investments like this to small contractors, but provides no guarantee they will generate returns. “It was a risk that we took and it highly paid off,” she said. For Margarita Howard and HX5, that risk produced a company now employing more than 1,000 professionals across 34 states and 90 government locations, supporting NASA, the Army, Navy, Air Force, and the General Services Administration. See related link for more information.
More about Howard on https://m.doyoubuzz.com/margarita-howard