May 25, 2025
People talk about catching lightning in a bottle.
Charles Proteus Steinmetz created lightning in a lab.
People called him the “Little Giant,” (what a name). Steinmetz was one of the most brilliant minds in industrial history. He worked with Edison. Consulted with Einstein. Even corresponded with Tesla.
While he helped to build the modern electrical systems we all use today, one story from his life holds vital lessons for business owners. And it certainly makes him an OG entrepreneur.
It’s a simple chalk mark.
Ford stalled out
In the 1920s, Henry Ford had a problem at his River Rouge plant in Dearborn, Michigan. At the time, this plant was the largest and most advanced industrial complex in the world. The problem? A massive generator failed, threatening the entire production line.
Ford’s had internal engineers, but none of them could fix it. They couldn’t even diagnose the problem.
To put it in perspective, Ford was running a vertically integrated factory to turn raw iron ore into a finished car in under 30 hours. According to Ford’s own production data, any downtime during peak output could cost the company $10,000 to $50,000 per minute.
Ford called in the best, Steinmetz.
How about this tech stack: A notebook, cot, and chalk
When he arrived, Steinmetz made five requests:
- A notebook
- A pencil
- A cot
- A ladder
- A piece of chalk
He camped out in the plant for two days. In his time there, he looked around, took notes, sketched diagrams, and ran quiet calculations. Then, without fanfare, he grabbed the ladder, moved it to one of the generators, clambered up it, and marked an X on the side. Then he instructed Ford’s team to replace 16 coils in the panel.
The engineers followed his orders and The generator roared back to life.
The $10,000 invoice drama
Shortly after, Steinmetz submitted his invoice for $10,000. Ford balked at the price, which he found too high. After all, the little giant only spent two days on the project and had little overhead. He demanded an itemized invoice to justify the spend.
Steinmetz sent a brilliant response:
$1 – Making the chalk mark
$9,999 – Knowing where to put it
Ford paid the bill. He understood how much cash the downtime was burning. And, deep down, he knew what he was really paying for: expertise.
Five lessons for us.
1. Specific knowledge creates pricing power
Steinmetz didn’t just know electricity. He understood it at a level few others did.
Modern economists call it “monopoly on insight.” The fewer people who can solve a problem, the more you can charge to solve it. It’s true whether you’re building SaaS, doing M&A, or fixing a broken generator.
McKinsey shares that businesses with deep expertise in niche categories can grow twice as fast as generalized companies.
Translation: specializing pays.
Racing to the bottom and competing on price is a risky game. Cultivating value that others cannot deliver sets you apart and earns you the right to charge a premium.
Get so good at a hard problem that people don’t flinch when you name your number.
2. Price for the Value, Not the Time
Steinmetz only spent two days at the factory, but he didn’t charge for two days of work. He charged for a working generator, thousands of workers back on the job, and millions saved.
Many entrepreneurs struggle with this mindset. Many people get paid by the hour as they grow up and enter the workforce, and it gets comfortable. Making the switch to charge for outcomes can take your value to a level you didn’t consider before.
Take it from The Harvard Business Review. Companies can increase profit margins 25% without increasing sales volume by switching to a value-based pricing strategy.
Your clients aren’t paying for your sweat. They’re paying for the result only you can deliver.
3. Your constraints can refine your opportunity
Steinmetz was born in 1865 with severe scoliosis and hip dysplasia. He stood just over four feet tall and suffered chronic pain his entire life. Many people would not overcome the physical or societal obstacles Steinmetz did.
Back then, society wasn’t known for inclusion or access. But he didn’t wait for permission. He earned his place by studying and becoming the best in his field. He turned his specialized knowledge into a position as the chief consulting engineer at General Electric, published hundreds of papers, and mentored future Nobel laureates.
Whether it’s a non-traditional background, neurodivergence, or a winding career path, your perceived limitations might be the foundation for your edge.
4. Hire the person with the X factor
Ford had hundreds of engineers on payroll. None of them solved the problem. They tried. They tried for a while. Steinmetz did it alone in 48 hours.
People like that earn more than pay for themselves, even if they’re expensive. Bain found that top performers can give a company up to 400% more productivity than an average employee.
Steinmetz didn’t look the part. He didn’t look like a savior, but he delivered.
When you’re hiring, especially in technical or strategic roles, don’t just fill the seat. Look for the person with rare pattern recognition. The one who knows where to mark the generator.
5. Time lost = value lost
Ford understood something many teams forget: downtime compounds. The longer a critical function is broken, the more expensive the fix becomes because you end up paying for repairs plus everything that doesn’t get done while you’re down.
It’s a big industry, but Siemens points out manufacturers lose about $260,000 per hour when they have unplanned downtime, on average.
For entrepreneurs, this plays out differently. It can look like missed milestones, delayed feature launches, or fundraising that stalls.
In either case, the same rule applies: speed matters.
Pay the expert. Ship the feature. Solve the problem.
Closing Thoughts
Use Steinmetz as an inspirational reminder to:
- Work on hard problems.
- Build your knowledge.
- Sharpen your skills.
- Charge for value.
- Own your worth.
The name “Little giant” means something because he was both. Perhaps people saw him as small from the outside, but his knowledge, skills, contribution to society, and his understanding of his own value truly made him a giant.