BATNA Worksheet
A 10-minute prep sheet that forces you to name your walk-away alternative, and estimate theirs, before you ever sit down to negotiate price or terms.
How to use it
Complete all five steps alone, in writing, in the 10 minutes before any negotiation call: never fill this out live on the call itself, and never skip Step 3 just because it feels like guessing.
What's inside
- Clear definition of BATNA and why skipping this step costs margin
- Step 1, defining your own best alternative and its real value
- Step 2, setting your reservation price / walk-away point
- Step 3, estimating the buyer's BATNA and how strong it really is
- Side-by-side comparison table
- A leverage scoring formula with three concrete strategies by score band
- A red-flag checklist for when you're about to negotiate blind
Best Alternative To a Negotiated Agreement: 10-Minute Prep
Fill this out before any call where price, scope, timeline, or contract terms will be negotiated. If you don't know your walk-away point going in, the buyer will find it for you, live, on the call.
Step 1: Define YOUR BATNA (2 min)
If this deal falls through, what actually happens instead?
- Your realistic next-best alternative if this deal doesn't close (another prospect in pipeline, holding the slot for next quarter, walking away entirely): ___________________________
- Realistic value of that alternative (deal size × probability × timing): $ _______
- What keeping this deal alive is costing you elsewhere (time, discount precedent, team capacity): ___________________________
Step 2: Set your Reservation Price / walk-away point (3 min)
- Absolute minimum price/terms you'll accept before this deal becomes worse than your BATNA: ___________
- What specifically makes it worse than walking away (margin below X%, term under 12 months, no reference rights)? ___________________________
- Your target price/terms: not the walk-away, the number you're actually aiming for: ___________
Step 3: Estimate the BUYER's BATNA (3 min)
- Their real alternative if they don't buy from you (competitor, status quo / do-nothing, build in-house, delay a year): ___________________________
- How strong is that alternative, honestly? Rate 1 (weak, they need this) to 5 (strong, they can easily walk): _____
- Their cost of delay, what do they lose by not deciding now? ___________________________
Step 4, Comparison Table
| Your BATNA | Their BATNA | |
|---|---|---|
| Strength (1–5) | ||
| Time pressure | ||
| Cost of walking away | ||
| Who needs this deal more? |
Step 5: Negotiation Confidence Score
Formula: (Your BATNA strength) − (Their BATNA strength) + (Their time pressure, 1–5) = _____
- +3 or higher, you have real leverage; hold firm on price and terms.
- 0 to +2, negotiate normally; expect to trade; don't lead with concessions.
- −1 or lower, you have less leverage than you think. Focus on non-price value (terms, scope, timing) rather than defending price alone, and be honest with your manager about the real odds before over-promising internally.
Red Flags: you're about to negotiate blind if:
- You can't name a specific dollar value for your BATNA (just "other pipeline")
- You haven't asked the buyer a single question about their alternative to buying from you
- Your walk-away point was set by quota pressure, not the math above
- You're more anxious about losing this deal than the buyer is about not signing
If any box is checked, spend 10 more minutes here before the call, it will save you real margin.