Planning for expected and unexpected outcomes is essential to negotiating effectively. Negotiations are unpredictable. It's often difficult to know how the other party will respond. Preparation 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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7 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. This can open communication and spark 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. Define what success looks like and set a stretch goal—one that's ambitious but achievable.
It’s equally important to understand your values, boundaries, and non-negotiables.
“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.
Check out the video below to learn more about the value of strengthening your negotiation skills from Harvard Business School Professor Michael Wheeler. Subscribe to our YouTube channel for more Faculty Q&A videos.
In this faculty Q&A, Harvard Business School Professor Michael Wheeler discusses the value of strengthening your negotiation skills.
In this faculty Q&A, Harvard Business School Professor Michael Wheeler discusses the value of strengthening your negotiation skills.
3. Know Your BATNA
Before negotiating, understand the deal’s key conditions and constraints. While you may find common ground, you might not reach an agreement.
“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 as you want.
4. Strategize
Developing an effective negotiation strategy is critical to your preparation. Consider your desired outcome, priorities, the other party's goals, 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 make tactical, confident decisions at the bargaining table. By anticipating scenarios and responses, you'll be better prepared to act in ways that advance 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.”
5. Be Ready to Improvise
Negotiation is unpredictable. Being prepared is key, but you must also be flexible and adaptable.
Anticipate different situations so you can think on your feet. Consider negotiating with friends or colleagues to practice improvising on the spot.
Remember: The more thoroughly you prepare, the better equipped 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
Build a strong set of negotiation skills and continue developing them over time.
“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!
As a business professional, it’s almost guaranteed you’ll be required to participate in negotiations from time to time, regardless of your job title or industry. Here are three essential skills for mastering the art of negotiation.
7. Know What Not to Do
Certain mistakes can hurt your credibility or cause your counterpart to 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.
Letting stress or anxiety affect your behavior: 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 your personal and professional life.
Pay attention to everyday negotiations—like resolving family conflicts or asking for favors—and reflect on what worked and what didn’t. 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 AI-powered simulations that enable you to gain practical experience and receive personalized feedback on your approach.
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 entrepreneurship and innovation courses—and download our free e-book on how to become a more effective leader.
This post was updated on April 3, 2026. It was originally published on June 27, 2023.