The first KEY step is introspection. You need the clearest possible view of your goals. And you need to be brutally honest with yourself about your priorities. There are NO perfect situations in life, so you will need to make choices. So you start with a comprehensive personla inventory: What do you valus most? is it short-term gain or long term security? Is it the ability to live or work in a certain geographic area? etc etc etc.
The next step is to understand your value in the world. What are your unique skills and talents? Are you irreplaceable.because of those skills and talents, or could anyone fill your slot?
Understand that most negotiating is tap dancing on the edge of an abyss. The reality is that this may be the best job for you, this may be the most money you will ever make...and yet, if you allow fear to fill you with anxiety, it can paralyze you. So in any negotiation, part of your mental preparation must be to deal with fear. Remember that walking away from negotiation is always and option. You've got to ignore the fear that you may find yourself unemployed as exemple.
The best analogy is to the fear of death. it's inevitable that we're going to die. That's a fearsome prospect, an inescapable reality. And yet the ONLY way to live well is to come to peace with that fact and not to let it haunt your every moment.
Fear comes with the territory of negotiation. But fear needs to be managed, and it needs to be kept in perspective. One way to diffuse your fear is to confront the words that make you afraid, so that they lose some of their sting. Practice saying the words that are hardest for you to hear, or that are hardest for you to say: "If you won't take this proposal, then I guess we have nothing more to talk about". "I'm goign to start looking for somone to replace you." Or, if you're trying to get up the courage to walk away: "Obviously this is not the place fro me. I'm looking for a new job." Rid these words of their power to paralyze.
Remember that Negotiation can get emotional. But you need to remind yourself that they're about business. It's not about whats Fair...They are jobs that are so much fun that you would pay your boss to let you do them! But you can't allow the dicussion to turn on your personla circumstances. The real question is, what is the market value of what YOU do?
There are many ways to negotiate. The reasonable-person theory says that a reasonable person ought to ask for money or conditions that are very close to what he actually wants and that are close to what is fair. The problem is that those two things are often very different. If the market value for a service is $100,000. and the employees asks for 500,000$, and the employer offers 95,000$, then splitting the difference make no sense. In a situation like that, if you simply split the difference, you'd end up with a bizarrely unfair result. At that point, the employer has to assume that he's not dealing with a serious negotiator, becasue there's no validity to the 500,000$ request.
When there is a deadlock in a negotiation..you ask yourself "NOw what?..Well,,when you're preparing to negotiate, you should asume that this moment will comee sooner or later. When it does dont be surprised, and dont get frustrated. The key to gettign through that situation is emotinal resillience. you have to face it and then step back,,,for five minute....for and hour... take a walk and come back to it.
In most cases, a negotiation will not be the last time you interact with the other side. And since you will keep interacting with the other side, either in the workplace or in later negotiations your goal should be to find the most profitable way to complet a deal that works for both sides.