Preparation: The Real Work

Negotiations Are Won Before They Begin

Amateurs wing it. Professionals prepare obsessively.

The hours you spend preparing often matter more than the minutes you spend negotiating. Preparation gives you confidence, flexibility, and strategic clarity when you need it most.

The Seven Elements of Preparation

1. Define Your Interests

Not your position (what you want), but your interests (why you want it).

Position: "I want $90,000 salary."

Interests:

  • Financial security for my family
  • Feeling valued for my contribution
  • Keeping pace with market rates
  • Affording my living situation

List your interests. Rank them by importance. Understand which are essential and which are tradeable.

2. Research Their Interests

What does the other side care about? What are they trying to achieve? What pressures are they under?

Sources:

  • Public information (websites, press releases, financial reports)
  • People who've negotiated with them before
  • Industry knowledge
  • Direct questions in early conversations

The more you understand their situation, the better you can craft proposals that work for both sides.

3. Know the Market

What's standard? What's fair? What have others received in similar situations?

For salary: Glassdoor, LinkedIn data, industry surveys, recruiters For purchases: Comparable sales, online prices, competing offers For business deals: Industry terms, precedent transactions

Objective data strengthens your position and provides anchors.

4. Determine Your BATNA

Your Best Alternative to Negotiated Agreement — what you'll do if this negotiation fails.

A strong BATNA gives you power. A weak BATNA makes you desperate.

We'll cover BATNA in depth in the next chapter, but include it in preparation.

5. Estimate Their BATNA

What will they do if they can't reach agreement with you?

If their alternatives are poor, they need this deal more. If their alternatives are strong, you may need to be more flexible.

6. Set Your Range

Aspiration point: Your ambitious but achievable goal. Where you'd be genuinely pleased.

Reservation point: Your walk-away point. Below this, you prefer your BATNA.

Know both numbers before negotiating. The range between them is your negotiating zone.

7. Plan Your Opening

How will you start? What will you say first? What will you ask?

Your opening sets the tone and often anchors the negotiation.

Preparation Checklist

About Your Side

  • What are my interests (not just position)?
  • Which interests are most important?
  • What's my BATNA if this fails?
  • What's my reservation point (walk-away)?
  • What's my aspiration point (target)?
  • What can I offer that doesn't cost me much but might matter to them?

About Their Side

  • What are their likely interests?
  • What pressures or constraints do they face?
  • What's their probable BATNA?
  • What's most important to them?
  • What might they offer that matters to me but doesn't cost them much?

About the Negotiation

  • What objective criteria or standards apply?
  • What's the market rate / going rate / precedent?
  • Who are the decision-makers?
  • What's the timeline and any deadlines?
  • What's the relationship context (one-time vs. ongoing)?

Strategy

  • How will I open?
  • What's my first offer (if making one)?
  • What questions will I ask early?
  • What concessions am I willing to make?
  • What will I ask for in return for concessions?
  • What are potential creative options?
  • What tactics might they use?
  • How will I respond to pressure?

Preparation Depths

Quick Preparation (30 minutes)

For lower-stakes negotiations:

  • Know your BATNA
  • Set your range
  • Research basic market information
  • Think about their perspective

Standard Preparation (2-4 hours)

For significant negotiations:

  • Full market research
  • Written interests list (yours and theirs)
  • Clear BATNA analysis
  • Multiple scenarios considered
  • Opening strategy planned
  • Concession strategy planned

Deep Preparation (days/weeks)

For major negotiations (job offers, major contracts, significant purchases):

  • Comprehensive research
  • Multiple stakeholder consultation
  • Practice sessions
  • Written negotiation plan
  • Anticipated responses mapped
  • Team coordination (if applicable)

Information Gathering

Direct Questions

"What's most important to you in this deal?" "What would success look like from your side?" "What constraints are you working with?"

You'd be surprised how often people answer if you just ask.

Indirect Learning

  • What have they done in past negotiations?
  • What's their reputation?
  • What does their behavior tell you?

Market Intelligence

  • Industry reports
  • Comparable transactions
  • Expert opinions
  • Online resources

AI Prompt: Negotiation Preparation

Help me prepare for a negotiation.

Situation: [Describe the negotiation]
What I want: [Your goals]
Who I'm negotiating with: [Other party]
What I know about them: [Any information]
Timeline: [When this happens]

Help me:
1. Clarify my interests (not just position)
2. Hypothesize their interests and constraints
3. Research questions I should answer
4. Identify potential value-creation opportunities
5. Set my aspiration and reservation points
6. Plan my opening approach
7. Anticipate their tactics
8. Prepare responses to likely challenges

What's Next

Understanding your own and their interests is foundational. Let's go deeper.

Next chapter: Understanding interests — the key to creative agreements.

The Negotiation MindsetUnderstanding Interests