The Hidden Costs of Success: What Thomas Midgley Jr. and Modern Entrepreneurs Can Teach Us About Unforeseen Consequences

In the early 1920s, automotive manufacturers faced a frustrating and persistent technical barrier: they desperately wanted to build more powerful, high-compression engines, but "engine knocking" kept getting in the way. Fuel igniting unevenly inside a cylinder created violent vibrations that regularly damaged internal engine components. The finest engineering minds of the era scratched their heads over how to extract more power from combustion without sacrificing mechanical reliability or destroying the machinery altogether.

Simultaneously, a completely different industry was grappling with its own dangerous hurdle. Refrigerator manufacturers faced a severe safety problem because the chemical compounds used in early household cooling units were frequently toxic or highly flammable. A minor mechanical leak in a kitchen appliance could easily turn into a serious household hazard or a fatal disaster. Finding a safer, chemically stable refrigerant was the missing puzzle piece that could finally make domestic and commercial refrigeration practical and safe for the mass market.

Enter Thomas Midgley Jr., a brilliant American engineer and chemist working at General Motors. Midgley took on both challenges with inventive zeal. Through rigorous experimentation, he discovered that adding tetraethyl lead to gasoline could suppress engine knocking, allowing internal combustion engines to run smoother and generate more power. Later, he would help pioneer the development of chlorofluorocarbons, commonly known as Freon, a refrigerant far less toxic and flammable than the dangerous ammonia and sulfur dioxide alternatives in widespread use at the time.

Just like that, two stubborn, seemingly insurmountable engineering problems appeared to be definitively solved. Industrial manufacturers across multiple sectors respected him deeply, quickly adopting his chemical innovations, and both leaded gasoline and synthetic refrigerants became massive commercial successes. For his groundbreaking work, the American Chemical Society awarded him the prestigious Priestley Medal, which stands as its highest professional honor.

Looking at that impressive track record, an outside observer could reasonably conclude that Midgley had done an extraordinary job. Entire global industries were growing rapidly because of his chemical solutions, and he had earned widespread recognition from his scientific peers. By every conventional measure of corporate and scientific achievement, Midgley’s career was a triumph. But then the other shoe dropped.

Decades later, the true scale of the trade-offs became apparent. Leaded petrol was found to spread toxic lead particles through vehicle exhaust, exposing generations of human beings and wildlife to a heavy metal whose neurotoxic and harmful effects we now understand all too well. Similarly, long after Freon and related CFC compounds became ubiquitous in global manufacturing and consumer goods, atmospheric scientists discovered that these chemicals were rising into the stratosphere and systematically destroying the Earth’s ozone layer.

Midgley died in 1944, years before scientists fully grasped the catastrophic damage his chemical compounds inflicted on the global environment. In Midgley’s defense, he could not possibly have predicted every long-term ecological consequence of his inventions at the time of their creation. However, his historical trajectory begs a profound and unsettling question for anyone who has successfully built a modern business: What if the very strategy, habit, or product that made you successful in the first place is also silently creating costs and liabilities you haven’t accounted for yet?

When Success Hides the Full Cost

Early warning signs regarding the dangers of leaded petrol had actually appeared during its initial production phase and early distribution, but those safety warnings were largely ignored or brushed aside. The product remained in widespread commercial use for decades because its financial and utility benefits outweighed the perceived drawbacks. Likewise, Freon seemed entirely safe, odorless, and harmless at first glance, leading to widespread adoption before anyone truly understood the atmospheric physics of ozone depletion.

There is a shared, sobering lesson here about the inherent limits of traditional measures of success. A product, process, or business model can work exactly as intended while simultaneously generating severe downstream consequences that its original purpose never required anyone to consider.

Modern business owners frequently fall into a remarkably similar psychological and operational pattern. You find a tactic that works, so you naturally decide to do more of it. Being personally available to clients at all hours helps win early accounts, so you keep answering calls late into the evening. Making every single important decision yourself helps the early-stage business move quickly and decisively, so you stay heavily involved in daily operations as the team expands, accepting every piece of incoming work simply because market demand remains strong.

Each of these decisions likely solved an urgent operational problem at the time and helped get the enterprise to where it is today. Yet the hidden costs often emerge much later, as the business scales and as the founder gains broader perspective.

The Habits That Built Your Business Can Become Expensive

Early in a company’s life cycle, intense personal involvement from the founder can be precisely what the organization needs to survive and find its footing. The difficulty arises when those initial survival habits continue long past the point when the circumstances that made them useful have completely changed.

The founder who once needed to approve every purchase order and hire may now be acting as a major operational bottleneck for an ambitious team. The round-the-clock availability that once won vital early clients now leaves no psychological room to switch off, rest, or recharge. The specific behaviors that helped construct the foundation of the business can become exceptionally expensive as the enterprise grows larger and more complex.

Sometimes, stepping in personally is exactly what a business needs to rescue a stalled project. You take charge, resolve a crisis, establish a new process, or build a critical relationship that gets momentum moving again. But that temporary intervention was rarely meant to be permanent. What began as a short-term solution can quietly solidify into an ongoing personal responsibility, until the owner is spending the vast majority of their time simply operating the machinery of the business rather than leading its future direction.

Consequently, the business may boast more customers and higher revenues, but it also brings vastly increased operational complexity. A new regional market opens up, but it demands grueling travel and constant attention from the top. The company becomes significantly more profitable while the owner’s personal time, physical energy, and mental health become increasingly difficult to protect, often leading to neglected family relationships and mounting exhaustion.

In professional coaching conversations with entrepreneurs, a recurring theme is the stark difference between what a business produces on paper and what it demands from the human being running it. Financial metrics like revenue, gross profit, and year-over-year growth are relatively straightforward to track on a standard dashboard. Conversely, the hidden cost to a founder’s health, personal relationships, decision-making judgment, and personal freedom can be extraordinarily difficult to quantify, allowing these tolls to go unexamined for years.

A business can easily be winning by its own financial measures while the person who built it pays a personal price they never intended to pay when they launched the enterprise. This dynamic is rarely the business owner’s fault, because it is remarkably easy to miss when the monthly financial statements and revenue numbers look exceptional. A sudden corporate crisis forces leaders to take a step back and review their operations, but who willingly stops to question continuous, uninterrupted success? Nobody.

When revenue is climbing steadily and customers appear happy, why feel any pressure to question the way you are running the business, even if the underlying operational arrangement is becoming increasingly difficult to sustain over the long haul?

Measure What Success Is Costing You

Entrepreneurs do not need to become pathologically suspicious of every ambitious commercial decision. Building a profitable enterprise inherently requires taking calculated risks, committing financial capital, and making choices whose ultimate outcomes cannot be predicted with absolute certainty. However, modern leaders do need to ask whether their traditional metrics of success account for enough of the overall picture.

Imagine reviewing a brand-new business initiative or expansion plan. A thorough executive would naturally examine the expected revenue projections, projected operational costs, staffing requirements, and expected return on investment. But would that same leader also pause to ask what the initiative will demand from them personally, what existing priorities it might displace, or whether the company will become dangerously dependent on their direct, daily involvement?

Consider taking a moment to evaluate one specific part of your business that is currently performing exceptionally well. It might be your fastest-growing service line, a major client account, or an internal administrative process that relies entirely on you being constantly available to solve ad-hoc problems.

Write down three distinct elements regarding that operation: what tangible results it produces, what daily demands it places on your time and energy, and what personal or professional priorities it displaces. Then consider critically whether that arrangement remains genuinely sustainable as the company continues to grow. Is it delivering the financial results you need today at the direct expense of what the business will require to sustain those results over the long term? Or can it continue producing the same positive outcomes without placing increasing, unsustainable demands on you, your team, or the resources the company needs elsewhere?

Time spent managing one immediate operational opportunity is time fundamentally unavailable for strategic planning. Energy spent resolving routine daily decisions cannot simultaneously be dedicated to thinking about the long-term future of the market. An arrangement that works brilliantly from a pure accounting perspective may place hidden demands on family life and personal well-being that nobody bargained for when the venture first began.

Ask yourself honestly what has changed since you first made that foundational decision. Perhaps the company has grown significantly, your personal responsibilities have shifted, industry regulations have evolved, or a risk you once considered acceptable now deserves a hard second look. Would you make the exact same decision today, knowing what you know now?

If the honest answer is yes, you can carry forward with a much clearer, more conscious understanding of the exact trade-offs involved. If something vital has changed, you retain a valuable opportunity to reconsider the arrangement while you still maintain options. You might choose to delegate a recurring decision, renegotiate the terms of a demanding client relationship, or phase out a service line that no longer justifies the heavy demands it places on your daily life.

The central point is to make those deliberate choices while you still possess strategic options, rather than waiting for external market circumstances or personal burnout to force your hand. Building a successful enterprise demands immense hard work, resilience, and sacrifice. Business owners deserve to fully understand what their company gives them, what it asks of them in return, and whether that ongoing exchange still makes sense. True success deserves rigorous examination, especially when everything appears to be going smoothly on the surface. Sometimes the most vital decision an entrepreneur can make is to look far beyond the initial results that got them to where they are today.

In This Category: Entrepreneurship & Business Strategy

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