By 1990, Markov was successful enough as a consultant that he
began his own company, Markov Processes, and started consulting to
financial firms. A year later, he'd grown his business enough
that he was looking for a partner. In 1992, a mutual friend
introduced Markov to Kvitchko, who was also working as a
consultant.
Kvitchko had washed dishes for two months, and then segued into
a job at AT&T. An atypical segue, yes, but Kvitchko had been a
dynamic force in the the world of computer programming in his
homeland, as a few of his friends argued when talking to managers
at AT&T.
Once they were partnered, Kvitchko and Markov immediately went
to work creating a program called Style Advisor, which
characterizes investment portfolios to help financiers determine
whether certain investments are sound. They used this program to
consult what became their only client for a couple years, a
New York City money management firm called Balch, Hardy, Schienman
& Winston.
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The partners thought they were on track. Considering their
communist educations, it's no wonder the thought never occurred
to them that their only client might go bankrupt, but that's
exactly what happened. Before they had much time to lament their
misfortune, however, one of the firm's partners decided to
strike out on his own. He bought the rights to Style Advisor and
hired the Russians as his consultants.
Markov Processes was back in business--but not for long. Just a
few months later, their client decided to hire in-staff computer
programmers. Markov and Kvitchko again were without customers--and
they didn't own Style Advisor anymore. They had no client, no
product...and no business.
So they again went to work, this time creating a new product
that analyzed the performances of complex pension funds and
portfolios, as well as determined what type of investment decisions
were being made. But Markov and Kvitchko had no idea how to market
the program, and worse, nobody understood the concept. The product
went nowhere.
By 1996, the two men had clued in to capitalism in a big way.
They didn't have their Style Advisor, but they could create
something that ultimately did the same thing, only better. Their
Stylus program analyzes changes in portfolios' values and
determines the styles used to make those investments. It also
assesses the work of funds' money managers.
And they wouldn't be thrown into a Siberian prison for doing
it. For perhaps the first time, it dawned on Markov and Kvitchko:
Here in America, competition is encouraged. Who knew?
And what's more, companies understood the concept
immediately--and liked what they saw. They were able to sell the
program to a slew of companies, including Fidelity Investments,
Charles Schwab and Bank of America.
But Markov and Kvitchko were still not exactly
business-savvy--"During some early sales pitches, they would
argue with each other," recalls a colleague--and the business
wasn't turning profits. Markov was being supported by his
Ukrainian wife, a financial executive; Kvitchko and his wife were
living off their rapidly depleting savings. Kvitchko's wife did
occasional baby-sitting or housecleaning to bring in extra cash. It
wasn't until 1998 that the partners had their first profitable
year, but now those money worries appear to be gone for the time
being. With a roster of 30 clients, Markov and Kvitchko can breathe
at least a little easier.
But the partners aren't as interested in money as they are
freedom. "My vision is to be a team of people who can
implement ideas," says Markov. "What's good about the
company is when you have an idea, you can do it. You can take it
and implement it in the best possible way, and we take pride in
what we do."
"We are probably not typical businessmen," admits
Kvitchko. "We want to live interesting lives, in terms of
having fun out of [a] job. I want to create new things; I want to
be able to learn new ideas and implement them in ways that never
existed before. At the same time, I wouldn't mind being much
more financially independent than I am now."
They may not be full-fledged capitalists yet. But they're
learning.
Contact Source
Markov Processes International Corp., info@markovprocesses.com
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