Trust your gut… or should you?

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