Negotiation is a word that conjures up images of board rooms, power plays, and attorneys. However, we all negotiate every day with our co-workers, spouses, and neighbors. Whether you’re in a court room or your kitchen, here are seven steps to prepare for a negotiation, from identifying your objectives and priorities, to knowing when to walk away.

Seven steps to prepare for a negotiation

1. Establish the context. Know what you’re going after and why. Stay focused on the objective, and don’t get drawn into an ego match.

2. Identify needs and wants. The needs are necessary for success. The wants are improvements that build on your needs.

3. Understand what will happen if you don’t reach an agreement. Brainstorming these outcomes could lead you to solutions that you had not even considered.

4. Establish the importance of the negotiation outcome. Are you negotiating with a critical vendor whose service greatly affects the outcome of a project? Or are you in a position where the outcome of the negotiation has little strategic effect?

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