Negotiation is the art of getting what you want. In business and in life, we negotiate every single day, from small issues to very important deals. The key to successful negotiation is preparation, confidence, flexibility, and knowing when to walk away.

Do your homework. Know the facts and figures, understand the issues fully, and determine your interests and priorities. The more you know, the more confidence you’ll have, and the less likely you’ll be to make concessions you’ll later regret.

Focus on interests, not positions. Your interests are why you want something. Your positions are what you’re demanding. Interests are flexible, positions are not. Look for mutual interests and options that satisfy both parties’ key interests.

Build rapport and trust. Smile, make eye contact, listen actively, and show interest in the other party. Trust is the foundation of a successful negotiation. Without it, the process will be adversarial and inefficient.

Start with a reasonable first offer. An extreme initial offer signals you’re not negotiating in good faith and can damage the relationship and trust. Make an opening offer that’s acceptable and leave room for compromise.

Look for win-win options. The best deals are those in which both parties feel they’ve won. Focus on mutually satisfying options that provide benefits for everyone. Be open to alternative solutions and willing to compromise when possible.

Be flexible but stand firm on your priorities. Don’t get locked into one particular position. Look for alternatives that still meet your key interests. But don’t yield on important points just to reach agreement. It’s better to walk away if your minimum requirements aren’t met.

Use compromise and concessions effectively. Compromise when the other party’s interests are more important to them than yours. But get concessions in return for the compromises you make. Look for a fair exchange and balance.

Be prepared to walk away if needed. The ability to walk away from a bad deal is your strongest source of power in a negotiation. If it’s unacceptable, be willing to end discussions and pursue better options. Often the other party will come back with an improved offer rather than lose the deal altogether.