Some business advantages fade quickly. Others compound. Margarita Howard’s decision to invest in a government-approved accounting system when she founded HX5 in 2004 belongs to the second category, and the company’s growth since then reflects it.

The initial investment was modest in scope but unusual for a brand-new contractor. Rather than spending on office space or equipment that would impress visitors, Howard directed HX5’s early capital toward back office infrastructure built specifically for federal contracting requirements. The system was government reviewed and approved, which gave it credibility with auditors from the start.

Small Wins That Add Up

What followed was a slow accumulation of trust. Each contract HX5 completed added to its performance history. Each successful audit reinforced its reputation for compliance. Each teaming arrangement with a larger prime contractor expanded the network of firms willing to work with HX5 again. None of these gains happened overnight, but together they built something harder for competitors to copy than a single win.

“We found tremendous benefit from having it in place early on,” Margarita Howard said of the accounting system, noting that many small businesses wait years before making a similar investment. That patience gap became part of HX5’s advantage. While competitors delayed, HX5 had already cleared the administrative bar that keeps many small contractors out of larger, more complex contracts.

The results are visible in HX5’s current size. The company has grown from one employee to more than 1,000 people working across more than 20 states and roughly 70 government locations. It now competes for prime contracts directly and continues to serve as a subcontractor to major defense firms. Howard’s early bet on infrastructure did not produce fast results, but it produced durable ones, and that distinction still shapes how HX5 operates today.

Margarita Howard has pointed to that patience as the real lesson behind HX5’s growth. The accounting system alone did not build the company, but it removed a barrier that would have otherwise slowed everything that came after it, from early subcontracting deals to the prime contracts HX5 pursues now. Visit this page for more information.

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