Trusting your gut is part of what got you this far. It’s what helped you launch your business, make quick calls, and grow from an idea into something real. But when your role shifts from founder to employer—from builder to leader—the stakes change. Especially when it comes to people decisions.

Why Gut Instinct Isn’t a Strategy

Gut instinct is a starting point—but it’s not a plan. And when you’re making decisions about hiring, discipline, or terminations, you need more than just intuition. These choices affect people’s livelihoods and your company culture. They also come with real compliance risks if not handled carefully.

Without clear documentation or a consistent process, even the best intentions can backfire. I’ve worked with business owners who were shocked to find themselves on the defensive after firing someone “because it just wasn’t working out.” When the challenge came—whether from an unemployment claim, a discrimination complaint, or internal pushback—they didn’t have a leg to stand on. No policies, no performance reviews, no documentation.

The Danger of the Gray Area

Most leadership decisions don’t happen in black and white. They happen in the gray—when someone’s performance is borderline, or when you’re hiring quickly under pressure, or when someone’s behavior feels off but isn’t clearly against any rule. This is where gut instinct is most tempting—and most unreliable.

It’s also where emotion creeps in. Maybe you’re loyal to an early hire who’s no longer a fit. Maybe you’ve delayed acting because confrontation is hard. These emotional pressures are normal—but they cloud judgment. And when there’s no framework in place, your team will feel that inconsistency. Standards shift. Trust erodes. And soon, you’re not leading—you’re reacting.