Prepare to Negotiate: Setting Goals and Building Leverage

Lesson 7: Prepare to Negotiate Your Salary (and Anything Else)

This lesson introduces the fundamentals of negotiation preparation.
You will learn how to set clear goals, identify leverage, and think creatively to resolve conflicts.
Preparation is the foundation of successful and collaborative negotiations.

Course Outline: Crash Course Business – Soft Skills

This course builds essential soft skills for work, career growth, and professional relationships.

1. INTRODUCTION: Business Soft Skills – Course Overview

2. LESSON 1: Why You Need Trust to Do Business

3. LESSON 2: Defense Against the Dark Arts of Influence

4. LESSON 3: The Secret to Business Writing

5. LESSON 4: How to Speak With Confidence

6. LESSON 5: How to Make a Resume Stand Out

7. LESSON 6: How to Ace the Interview

8. LESSON 7: Prepare to Negotiate Your Salary

9. LESSON 8: How to Become a Better Negotiator

10. LESSON 9: How to Set and Achieve SMART Goals

11. LESSON 10: Making Time Management Work for You

12. LESSON 11: How to Make Tough Decisions

13. LESSON 12: How to Avoid Teamwork Disasters

14. LESSON 13: How to Handle Conflict

15. LESSON 14: How to Find Your Leadership Style

16. LESSON 15: How to Create a Fair Workplace

17. LESSON 16: The Many Forms of Power

18. LESSON 17: How to Avoid Burnout

Everyone Negotiates

Negotiation shows up everywhere in daily life:

• Compromising on takeout

• Setting curfews

• Haggling over prices

Whether you realize it or not, you have negotiated before.

The first step to any successful negotiation is preparation.

What Negotiation Really Is

Negotiation involves:

• Two or more people

• Opposing interests

• Something each party wants

Negotiation is not about winning or defeating the other person.
It is about solving perceived conflict through collaboration.

Negotiation Is About Collaboration

A good negotiation:

• Advocates for your needs

• Avoids hostility

• Looks for solutions that help everyone

By communicating interests clearly, you can often find outcomes where both sides benefit.

Start With Your Goal

Preparation begins with understanding your goal.

Your goal may be more complex than it first appears.
For example, buying a car is not just about price—it is about quality, readiness, and cost-effectiveness.

Clear goals help you focus on what truly matters.

Distributive vs. Integrative Negotiation

A distributive negotiation focuses on dividing a limited resource, such as price.

An integrative negotiation looks for creative solutions that expand value.

Integrative negotiations often provide better outcomes because they address multiple needs.

Target Goals and Trade-Offs

Your target goal is the best realistic outcome you hope to achieve.

To prepare:

• Rank what matters most

• Decide what you can concede

• Identify what is non-negotiable

Trade-offs allow flexibility while still meeting your ultimate goal.

Alternatives and Resistance Points

Your alternatives define your resistance point—the worst deal you are willing to accept.

Strong alternatives give you:

• Leverage

• Confidence

• The ability to walk away

Walking away is not failure.
Sometimes it is the smartest choice.

Leverage in Salary Negotiations

When you have a job offer, you often have more leverage than you think.

Organizations want your skills for a reason.
Negotiating salary is not aggressive—it is strategic.

Preparation helps you advocate for yourself confidently.

Understanding the Other Side

Good preparation also means understanding the other party’s goals.

Ask thoughtful questions to uncover:

• Their priorities

• Their constraints

• Their alternatives

This information helps shift negotiations toward collaboration.

Ask Smart Questions

Instead of asking directly about limits, ask:

• What options are they considering?

• What matters most to them?

• What challenges are they facing?

These questions help you identify opportunities to create value.

Negotiate in Person When Possible

The best negotiation formats, from strongest to weakest, are:

1. In-person

2. Video call

3. Phone call

4. Email

Personal interaction builds trust and allows emotional cues to be read more clearly.

Trust Makes Negotiation Work

Trust encourages openness and creativity.
When both sides believe the other is acting in good faith, solutions are easier to find.

Negotiation is most successful when it is cooperative rather than adversarial.

Key Takeaways

• Everyone negotiates in daily life

• Preparation is essential

• Clear goals guide better outcomes

• Alternatives create leverage

• Integrative negotiation leads to win-win solutions

• Trust supports collaboration

In the next lesson, we will move from preparation to conducting negotiations in real situations.

FAQ

1. Is negotiation about winning?
No. It is about resolving conflict and meeting needs collaboratively.

2. What gives me leverage in a negotiation?
Strong alternatives and preparation increase leverage.

3. Is it okay to walk away from a negotiation?
Yes. Walking away can be a smart and strategic decision.

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