If only we could get whatever we wanted, whenever we wanted. But that’s not the way of the world. Plus, it would make life boring! The saying “I like a challenge” exists for a reason, right?

So how do you get what you want? In the business world, it often comes down to negotiation. And since negotiating is a part of everyday life, it wouldn’t hurt to be skilled in the art of negotiation.

Whether you own your own business or you’re a leader in your organization, your negotiation skills will likely be put to good use. The nature of negotiation is that neither party holds all the cards, including yourself—or else you wouldn’t be there in the first place! This means that if your negotiation skills aren’t up to par, the business could really suffer.

If you let your ego, emotion, or even luck get involved in the negotiating process, then you’re setting yourself up to fail. So how does one master the art of negotiating in business? Here are 5 steps to start you off on the right path.

How to Negotiate: 5 Steps to a Successful Negotiation

1. Form a Relationship

A good negotiator first establishes a relationship with the other party. Not only does this give you a better sense of the person, but it establishes some rapport between you.

Putting in the time and effort to build a relationship with honesty and integrity will create a solid foundation for a productive and upstanding negotiation. You place yourself in a better position to negotiate when there’s trust between you and the other businessperson.

2. Preparation: Arm Yourself

You wouldn’t go into a job interview without researching the company, would you?

A negotiation requires the same amount of preparation. Going in unprepared means setting yourself and your business up to fail. Do your homework ahead of time so that you enter the negotiation well informed.

Begin your research by getting to know the other individual’s strengths and weaknesses—they’ll probably be doing the same with you. Their business history could give you vital information. If you know anyone who has dealt with their company before, talk to them—you may discover a pattern in their negotiation skills that you can use to your advantage.

Not only should you know about the other party, but you should know about the product, service, or asset being negotiated over. Preparing yourself gives you confidence—and confidence is everything in the art of negotiation.

3. Know What You Want Before Negotiation Starts

Set hard limits for yourself before walking into a negotiation. Know exactly what you will accept and where you will draw the line.

Why? Knowing what you absolutely will not accept beforehand reduces your chances of being taken advantage of or agreeing to terms that you’ll regret later. Don’t sell yourself short!

Understand your worth and be realistic. For example, you may want your boss to double your salary, but that’s probably not going to happen. In that case, make sure to decide ahead of time the minimum percentage salary increase you’re willing to accept—and be willing to walk away if you don’t get it.

4. Stick to the Facts

The focus of the negotiation should be the results—what the best long-term solution is for those involved. Make it less about the individuals in the meeting and more about the facts of the matter—this will help avoid a hostile negotiation.

Remember, even though negotiation is ultimately about assigning value, it’s about the value of the product or service, not the people. Since your ego may cause you to take things personally, it should be left at the door. Stick to the facts and the issue at hand.

If you’re negotiating a raise, list your achievements and contributions in an objective manner that cannot easily be argued against.

5. What’s Your Strategy?

Winging it might work for you in other areas of life, but if you want to win, develop a strategy before going into that negotiation. Start bold: the first offer is the benchmark against which all subsequent offers will be compared. At the same time, don’t start off with an offer that’s completely ridiculous. Each move you make should set you up to close the deal satisfactorily rather than shoot yourself in the foot.

If you’re selling a product or service, make sure you have something to offer to sweeten the deal but that won’t hurt your negotiating position. For example, you could throw in a complementary one-time service or a small add-on that won’t affect your bottom line. Such small concessions will make the buyer feel like they’re getting a good deal for a fair price.

The Art of Negotiating: A Win-Win Solution

The truth is, both parties want to leave a negotiation feeling like they got the better deal—or at least a good deal. But both parties also need to be prepared to compromise. Understanding the needs of the other party is just as important as understanding your own. Why? This will help you construct offers that will fulfill their needs while maintaining your negotiating position.

Remember, it’s not just about coming to an agreement, it’s about establishing a long-term  successful relationship that could lead to more opportunities in the future.