The negotiating process has three, and possibly four, steps: (1) planning, (2) bargaining, (3) possibly a postponement, and (4) an agreement or no agreement. Success or failure in negotiating is often based on preparation. Be clear about what it is you are negotiating over.

Negotiating planning includes researching the other parties, setting objectives, anticipating questions and objections and preparing answers, and developing options and trade-offs. Step 1: Research the Other Parties—Researching the other party doesn’t mean only the person; it includes the person’s situation.

Step 2: Set Objectives Based on your research, what can you expect? You have to identify the bottom line—one thing you must come away with. Step 3: Anticipate Questions and Objections and Prepare Answers You need to be prepared to answer the unasked question—"What’s in it for me?" Step 4: Develop Options and Trade-Offs If you have multiple sellers or job offers, you are in a stronger power position to get your target price. You have to plan for alternatives.