Preparing for expected and unexpected outcomes is essential to negotiating effectively. Negotiations can be unpredictable and challenging—it's difficult to know how the other party will react to your proposition. Planning can make the difference between success and failure.
If you need to prepare for a difficult negotiation, here are seven steps to achieving the best outcome.
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DOWNLOAD NOW7 Steps to Preparing for a Negotiation
1. Build a Relationship
Building a relationship with your counterpart is vital. If possible, get to know them and establish a rapport before the negotiation begins.
You can build trust during the negotiation, too. Be open to their thoughts and opinions, and engage in active listening. Doing so can facilitate open communication and productive problem-solving. It can also provide insight into their motivations and priorities, enabling you to personalize your approach.
2. Set Clear Goals
Setting clear goals is one of the most important negotiation tactics. Ensure you know what you're aiming for, and set a stretch goal—one that's unlikely but possible.
Understanding your values, boundaries, and non-negotiables is just as crucial as having specific, tangible goals when entering the negotiation.
“You should define your values clearly before you negotiate," says Harvard Business School Professor Michael Wheeler in the online course Negotiation Mastery. "These are important decisions. Making them on the fly could cause you later regret.”
Be aware that your counterpart may hold different values. Recognize and anticipate that scenario while upholding your principles.
3. Know Your BATNA
Before approaching the bargaining table, you need to know the negotiation’s conditions. While you'll ideally find common ground with your counterpart, you possibly won’t, preventing you from achieving your desired outcome.
“It may seem odd, but the first thing to consider in preparation is what you’ll do if you're not able to reach an agreement,” Wheeler says in Negotiation Mastery.
The unfortunate truth is that your counterpart may not agree to your terms. If you can't resolve your differences, consider your best alternative to a negotiated agreement (BATNA), the course you'll take if the negotiation doesn't go how you want.
4. Strategize
Developing an effective negotiation strategy is critical to your preparation. Consider various factors, including your desired outcome, priorities and interests, assessment of the other party's goals and objectives, and any leverage or alternatives you have.
Determine the following:
- Your motivation for pursuing the negotiation
- The other party’s motivation for engaging with you
- How to create value for your counterpart
A well-developed negotiation strategy can help you stay focused and confident and make tactical decisions at the bargaining table. By thinking through potential scenarios and anticipating the other party's reactions and counterproposals, you'll be more prepared to respond in a manner that advances your interests.
“Put yourself in your counterpart's shoes," Wheeler says in Negotiation Mastery. "Think about what conditions might exist that would make them especially eager to deal with you.”
Related: 4 Examples of Business Negotiation Strategies
5. Be Ready to Improvise
The reality of negotiation is that it's unpredictable. Being prepared is key, but you must also be flexible and adaptable.
Anticipate various situations so you’re ready to think on your feet. Consider negotiating with friends or colleagues to practice improvising on the spot.
Remember: The more thoroughly you prepare, the better you'll be to handle the other party’s responses. Think through the best and worst outcomes and how you'll respond to each. Know what you’ll do if your counterpart is unwilling to listen to your thoughts, misunderstands your intentions, or even stereotypes you.
6. Develop Your Negotiation Skills
Have a variety of negotiation skills in your toolkit and take steps to develop them.
“Enhancing your negotiation skills has an enormous payoff,” Wheeler says in Negotiation Mastery. “It allows you to reach agreements that might otherwise slip through your fingers.”
Focus on improving skills like emotional intelligence, which can help you effectively empathize with others, communicate, and manage conflict in negotiations and business endeavors.
Check out the video below to learn more about essential negotiation skills you should develop, and subscribe to our YouTube channel for more explainer content!
View Video7. Know What Not to Do
There are several mistakes to avoid during the negotiation process that can hurt your reputation with your counterpart or even cause them to outright reject your proposal.
Refrain from the following:
- Forgetting to shake hands: It's crucial to start the conversation on the right note. Something as simple as forgetting to shake your counterpart's hand can decrease your chances of success.
- Allowing stress and anxiety to impact your demeanor: Feeling anxious is a natural part of negotiating. Instead of letting your anxiety negatively impact the conversation, channel it into excitement and use your emotions to your advantage.
- Not having an open mind: Listen to what the other party has to say. You might reach a mutually beneficial arrangement you hadn't previously considered.
- Negotiating against yourself: Don't start with the lowest offer you're willing to accept hoping it'll increase your chances of success. Be confident and assertive, and negotiate for what you want.
- Being aggressive or accusatory: While confidence is important, rudeness can result in a failed negotiation. Be polite, and don't be afraid to take a break or pause before speaking if you get frustrated.
- Immediately giving in to ultimatums: Misunderstandings can lead to hard stances. If you're faced with an ultimatum, don't immediately walk away from the negotiation. Continuing the conversation could help your counterpart gain clarity.
More importantly, don't sacrifice your integrity.
“Make sure that there's a clear understanding about how far you're willing to go when you're negotiating on behalf of other people or your organization," Wheeler says in Negotiation Mastery. "The people you're negotiating for deserve to know what lines you won't cross.”
Avoiding these mistakes is vital to becoming a good negotiator and achieving your desired outcomes.
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If you want to improve your negotiation skills, remember that negotiations occur in both your personal and professional life.
Keep track of everyday negotiations—like resolving family conflicts or asking for favors—and reflect on them to learn what did and didn’t work. You can apply those lessons to business negotiations and better understand your strengths and weaknesses.
Another effective way to prepare for the bargaining table is through online negotiation training. For instance, Negotiation Mastery can equip you with the knowledge and skills to succeed in a range of situations, such as securing a business deal, advancing your career, or increasing your salary. It also provides simulations that enable you to gain practical experience with peers.
The time and effort you invest into preparing for a negotiation can pay dividends. If you're hoping for the best possible outcome, don't forget to plan ahead—you'll be glad you did over the long term.
Are you ready to take the next steps in developing your negotiation skills and furthering your career? Explore our online course Negotiation Mastery—one of our online leadership and management courses—and download our free e-book on how to become a more effective leader.
