Margarita Howard, CEO of HX5, on Loyalty in Business and Why it Matters

In government contracting, loyalty is crucial for Margarita Howard, who has led HX5 as its sole owner and CEO/president since 2004. This core value has been instrumental in guiding the company to significant achievements. Its success is a compelling case for the indispensable role of allegiance in building and sustaining a successful enterprise in the challenging world of government contracting. Loyalty, both within Howard’s team and from external partners, has been pivotal to the success of HX5.

A striking example is Margarita Howard’s relationship with the bank that extended HX5′s first loan. Despite initial rejections from several banks, one financial institution’s decision to take a chance on HX5 began a long-standing partnership rooted in mutual trust and fidelity. “We are very loyal to the bank that gave us that opportunity,” Howard says.

The bank granted them a small business loan that was available to veteran-owned businesses. “It had layers and layers of approval. And once we were able to obtain that, I’m proud to say we paid it off ahead of time within a year, and we have really grown to be one of the bank’s largest customers,” Howard shares. “We have remained very loyal to our key people that started with us, [such as] our accounting firm, our banking firm, some of our insurers for various coverages, and things like that. We still have the same people we started with in many cases. And I fully believe in trust and loyalty.”

This ethos extends beyond just financial transactions. Howard credits the unwavering dedication of her employees as a critical component of the company’s success. “At the end of the day, that’s who makes us successful,” she notes.

Women comprise the majority of the company’s management team. “We were very selective of people that we chose for our management team,” says Margarita Howard. “And really, I could not be more proud of the team that we have. Many of them have been with us for 10 years or so, and we just have a highly dedicated, experienced management team. We could not do what we do without them. So I want to give a lot of credit to our employees.”

In government contracting, long-term relationships and reputation are paramount, which is why the principles of loyalty take on an even greater significance. Margarita Howard recognizes that building a dedicated client base and a committed workforce is beneficial and essential for sustained growth and success in this sector.

Studies and expert analyses consistently highlight the multifaceted benefits, from customer retention and reduced acquisition costs to increased spending and word-of-mouth marketing. For instance, loyal customers are known to spend 67% more than new ones, according to BIA Advisory Services. Those findings underscore the financial advantage of nurturing long-term relationships​​.

Furthermore, the digital era has amplified the significance of loyalty, which emerges as a crucial differentiator for enterprises seeking to set themselves apart from the competition. Predictive analytics and a well-designed loyalty strategy can significantly enhance customer retention and, by extension, a company’s profitability​​.

Being in tune with her team helps Margarita Howard stay down-to-earth. “I always do my best to stay grounded mentally, spiritually, and physically,” she says. “And I believe it’s of the utmost importance for anyone in a leadership position to surround themselves with individuals who tell the leader what they need to hear, not what they think the leader wants to hear. As a leader, one should never fall into the trap of believing in one’s own press, so to speak.”

A service-disabled Air Force veteran, Howard’s academic credentials include a Master of Public Administration and a Bachelor of Arts degree. Howard first enrolled at the University of Texas at El Paso, where she juggled her education and the full-time work schedules necessary to support herself and go to school at the same time. “I started at the University of Texas at El Paso and found quickly that it was very difficult to be putting myself through school due to the expenses inherent in pursuing advanced education,” she recalls. Overcoming these challenges required Howard to work very long hours and take on student debt.

But that grit turned out to be an advantage in the end, especially when it came to crafting her company from the ground up. HX5 is involved in various projects that cater to the needs of the U.S. military and other government agencies. The team, equipped with optimal experience and education, supports federal government operations, primarily for the Department of Defense and NASA. The company’s portfolio of projects includes research and development, engineering, information technology, and mission operations support.

Margarita Howard has over 25 years of executive-level management experience and has been dedicated to overseeing and directing all aspects of HX5 as it supports its customers throughout the various federal agencies.

Under her leadership, HX5 has flourished, providing services across 34 states and 90 government locations, firmly establishing itself as a loyal contractor in a highly competitive market.

Howard’s strategic approach to business, particularly her early decision to compete within the 8(a) program and avoid reliance on sole-source awards, has been pivotal to the company’s success. Her foresight in investing in key infrastructure, such as a government-approved accounting system, has not only enhanced HX5’s attractiveness to large businesses, but also underscored its capability and reliability as a prime contractor​.

Her career with HX5 is marked by significant achievements and recognitions, including the 2012 Small Business Administration Minority Small Business Person of the Year for SBA National Region 4 and the 2015 SBA North Florida Woman-Owned Small Business Person of the Year. These accolades reflect Howard’s accomplishments and the company’s commitment to excellence and ethical business practices​.

How does Howard handle every aspect of the business? “I am very big on scheduling my time. This is one habit that has helped me be the most productive; it allows me to follow a set routine that I have planned out in advance while always accounting for the flexibility to adjust as needed,” she says.

“Working side-by-side with civil servants and the military, supporting their respective missions is a privilege. I love this business and the work that we do. I’m extremely proud of it,” adds Howard.