When someone says, “trust your gut,” what are they really telling you? They’re telling you to trust your feelings, even if the facts say otherwise.

That’s dangerous advice.

I was in a peer group meeting recently where a member asked for input on a decision. He’s in the real estate business—buys, builds, and holds multifamily and retail properties. A few years ago, he lost a retail tenant and replaced it with a laundromat. It worked. Now he has another vacancy and wants to do the same thing again.

Seems logical, right? So I asked a few simple questions:

  • Are the demographics the same?
  • What’s the population density?
  • What does the competition look like?
  • Is the median income similar?

Then I asked something different:

“What if the best location for a laundromat isn’t in a building you own?”

His response: “I wouldn’t want to pay someone else rent.”

I said: “Aren’t you already paying yourself rent? Isn’t this just a math problem?”

He paused, and then said: “I get it, but it just feels right.”

That’s the gut talking. And this is where a lot of people go wrong.

His laundromat may succeed, but he’s blending two businesses:

  • Real estate
  • Laundromat operations

Each requires its own math, its own strategy, its own decision-making framework.

Your gut is not the problem. Misusing it is

Intuition has value, but only after you’ve done the work.

The right sequence is:

  1. Gather the facts
  2. Analyze the math
  3. Pressure test your assumptions
  4. Then use your gut to make the call

Your gut should help you decide—not replace the decision-making process.

I see leaders rely on “gut feel” all the time:

  • Hiring decisions
  • Pricing decisions
  • Investments
  • Strategic direction

Most of the time, it’s not intuition… it’s bias.

The next time you’re making an important decision, ask yourself:

Am I deciding based on feelings…or facts?

Because the best leaders don’t ignore their gut. They earn the right to trust it.

Related: The power of peer