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  • Forfatters billedeMark Hallander

12 steps to Master Negotiation

Negotiation is a ubiquitous part of life, from business deals and salary discussions to resolving conflicts with loved ones. Learning how to win every negotiation might seem like an ambitious goal, but by mastering negotiation best practices, you can significantly improve your chances of achieving favorable outcomes. In this article, we'll explore key strategies that can empower you to navigate negotiations successfully.

Negotiation between man and woman

Relevance of Negotiation

Negotiation is not merely a skill; it's a crucial tool that equips individuals and entities with the means to navigate complexity, resolve conflicts, and work towards outcomes that benefit all parties involved. Its relevance extends across personal relationships, business dealings, and societal interactions.

Learning effective negotiation skills empowers individuals to advocate for their needs, interests, and rights, ensuring they have a voice in decisions that affect their lives. By addressing potential conflicts proactively, negotiation can also prevent small disagreements from escalating into larger, more damaging disputes.

In the corporate world, negotiation is a cornerstone of securing partnerships, closing deals, and maintaining a competitive edge, driving business success.

Let's look into the 12 concrete steps to becoming a more skilled negotiator. I will add examples to demonstrate how negotiation best practices can be applied in various situations to improve the chances of achieving favorable outcomes.

1. Preparation is Key

One of the most critical aspects of negotiation is preparation. The better you understand your goals and the other party's interests, the more likely you are to achieve a favorable outcome. Research the subject matter thoroughly, gather relevant information, and anticipate potential objections or counterarguments.

Salary negotiation: Before the negotiation, research industry salary standards for your position. During the negotiation, confidently present your research and achievements, using them as evidence to support your salary request. Being well-prepared allow you to address potential counterarguments and respond to questions effectively.

Business partnership negotiation: Research your potential partner's goals, values, and market position. During the negotiation, you can address potential objections to the partnership set-up and provide solutions that align with the mutually beneficial goals of the partnership.

2. Active Listening

Effective negotiation requires active listening. Pay close attention to what the other party is saying. Ask open-ended questions to encourage them to share their perspective and concerns. This not only helps you understand their needs but also demonstrates your commitment to finding a mutually beneficial solution.

Salary negotiation: Instead of immediately countering their concerns, actively listen to their reasons for their offer. Ask open-ended questions to gain deeper insights into their perspective and acknowledge their points before proposing solutions.

Business partnership negotiation: Listen carefully to their vision for the partnership. Actively listen to their worries and ask clarifying questions to gain a deeper understanding of e.g. their scalability requirements.

3. Communication Skills

Clear and persuasive communication is vital in negotiations. Articulate your interests, needs, and objectives with precision. Use language that is persuasive and maintains a positive tone. Avoid confrontational or aggressive language, as it can hinder progress.

Salary negotiation: Clearly articulate your achievements, responsibilities, and the market value of your role. Use data and examples to support your salary request and provide a well-structured argument for why you deserve the increase.

Business partnership negotiation: Clearly express how the partnership aligns with both parties' interests. Be specific about what your expectations from the partnership. Use visual aids and compelling storytelling to make your vision easily understandable and memorable.

4. Flexibility

Negotiation often involves give and take. Be open to compromise and creative solutions. Avoid rigid positions, as they can lead to impasses. Instead, explore alternatives and be willing to adapt your strategy as the negotiation unfolds.

Salary negotiation: Instead of rigidly sticking to your initial salary expectation, be open to explore alternative compensation structures. E.g. performance-based bonuses, deferred salary increases that are tied to the company’s financial performance or non-monetary benefits like vacation or remote work options.

Business partnership negotiation: Be willing to adjust the terms to create a mutually beneficial arrangement. Share your openness to exploring various partnership structures that align with the evolving market dynamics.

5. Patience

Negotiations can be time-consuming, and impatience can undermine your position. Stay patient throughout the process. Rushing to a decision may lead to unfavorable outcomes. Take the time needed to explore options and consider consequences.

Salary negotiation: Instead of immediately rejecting the offer or pressuring for a quick resolution, express your gratitude for the opportunity to discuss the offer. Ask for time to carefully evaluate the offer, considering the complete compensation package, benefits, and potential for future advancement.

Business partnership negotiation: Rather than rushing to reach an immediate agreement, acknowledge the complexity of the issues and agree to engage in further discussions. Set a timeline for follow-up meetings.

6. Empathy and Rapport Building

Building trust and rapport with the other party can significantly enhance your negotiating position. Show empathy by understanding their emotions and concerns. Demonstrating that you care about their interests can pave the way for mutually beneficial agreements.

Salary negotiation: Understand your employer's budget constraints and acknowledge the challenges they face in managing the company’s finances. Express empathy for their position and inquire about ways to work within those constraints.

Business partnership negotiation: Take the time to understand your partner's concerns and objectives to build trust. Provide detailed information about your company's track record, stability, and commitment to the partnership’s success.

7. Decision-Making

Know when to make decisions during a negotiation. Sometimes, it's necessary to consult with others or gather additional information before reaching a conclusion. Effective decision-making is crucial to ensure that the agreement is in your best interest.

Salary negotiation: Make your decision based on a thorough analysis of the offer and your priorities. Consider factors such as job satisfaction, career growth potential, benefits, and the long-term prospects of each option.

Business partnership negotiation: Make decisions collaboratively, ensuring both parties are satisfied. Decide whether the terms of the partnership align with your company's growth objectives. Consider factors like access to resources, distribution channels, and potential risks.

8. Problem-Solving Orientation

Approach negotiations as opportunities for problem-solving rather than contests to "win." Seek solutions that benefit both parties. A cooperative mindset can lead to more sustainable and mutually beneficial agreements.

Salary negotiation: Instead of insisting on a specific salary figure, seek ways to address your financial needs while considering the company’s limitations. Propose alternative solutions, such as performance bonuses, additional responsibilities, or professional development opportunities.

Business partnership negotiation: Rather than stalling the negotiation, explore alternative solutions. For instance, a revenue-sharing model where both parties benefit from increased sales.

9. Trust-Building

Trust is the foundation of successful negotiations. Maintain honesty and integrity throughout the process. Be transparent about your intentions and commitments. Trust-building can lead to better long-term relationships.

Salary negotiation: Be transparent about your goals and expectations. Provide evidence of your contributions to the company and show a willingness to collaborate. Acknowledge the company’s financial constraints and express empathy for their position.

Business partnership negotiation: Share your long-term vision and strategic goals transparently. Provide references from satisfied clients and showcase your team’s expertise. Acknowledge the industry leader’s reputation and express your eagerness to learn from their experience.

10. Closing the Deal

Once an agreement is reached, ensure that it is clearly defined and documented. This helps prevent misunderstandings in the future. Both parties should have a clear understanding of their roles and responsibilities.

Salary negotiation: Send a formal email summarizing the agreed-upon salary, benefits, and any other terms. Express your enthusiasm for the new arrangement and inquire about the next steps, such as when the salary increase will take effect.

Business partnership negotiation: Engage legal counsel to draft a comprehensive partnership agreement that encompasses all agreed-upon terms, including roles, responsibilities, revenue-sharing models, and dispute resolution mechanisms. Both parties review and sign the agreement.

11. Conflict Resolution

Conflicts and disputes may arise during negotiations. Address them constructively, focusing on finding solutions rather than escalating tensions. A collaborative approach to conflict resolution can strengthen the overall negotiation.

Salary negotiation: Engage in a constructive dialogue to clarify job expectations and responsibilities. Discuss specific tasks, performance metrics, and reporting structures until an agreement is reached.

Business partnership negotiation: The negotiating parties seek mediation from a neutral third party or a business mediator. They present their arguments and concerns, and the mediator facilitates a discussion leading to a revised profit-sharing arrangement that satisfies both sides.

12. Know Your BATNA

Understanding your Best Alternative to a Negotiated Agreement (BATNA) is crucial. It provides a benchmark for evaluating the value of the current negotiation. Knowing when to walk away is just as important as knowing when to make a deal.

Salary negotiation: Explore other job opportunities in your industry and receive a job offer with a significantly higher salary from another company. This serves as your BATNA.

Business partnership negotiation: Explore other partnership opportunities, such as angel investors or venture capital firms, that may offer more favorable terms. This alternative represents your BATNA.


While winning every negotiation may not always be possible, applying these negotiation best practices can significantly enhance your chances of achieving favorable outcomes. Whether in business, personal relationships, or any other area of life, effective negotiation skills are a valuable asset. By mastering these strategies, you can become a more successful and confident negotiator.


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