BATNA
What is it:
BATNA is a powerful negotiation concept developed by Roger Fisher and William Ury, first introduced in the seminal book Getting to Yes: Negotiating Agreement Without Giving In (1981). It stands for Best Alternative to a Negotiated Agreement.
In simple terms, BATNA is your backup plan - the course of action you’ll take if the current negotiation fails. It’s not just about walking away; it’s about walking away to something better.
Knowing your BATNA gives you confidence, clarity, and leverage. Without it, you risk agreeing to unfavorable terms simply out of fear, pressure, or uncertainty. The stronger your BATNA, the stronger your negotiation position.
Why it matters:
In a world of freelancing, gig economy jobs, side hustles, business deals, and career switches, you’re constantly negotiating - your salary, your time, your energy, your worth.
But many people enter these situations unprepared, focusing only on the offer in front of them. BATNA reminds you to always know your Plan B.
You don't get what you deserve, you get what you negotiate. BATNA is how you make sure you don’t negotiate from desperation.
Examples in action:
1. Job Offer Negotiation
You’re offered a role at Company A, but you’ve also interviewed at Company B and C. Before negotiating salary or benefits, clarify your BATNA:
If Company A says no, can you fall back on Company B’s offer?
Could you go freelance temporarily while continuing your job search?
Knowing this helps you ask for more - and walk if it’s not right.
2. Freelance Work
A client wants you to slash your rates. You’ve already lined up two other smaller clients at your standard fee.
Your BATNA: Say no to the big client, take the two smaller ones instead.
Result: You keep your rates, sanity, and dignity intact.
3. Startup Fundraising
A founder negotiating with a VC should always clarify:
Can I bootstrap longer?
Do I have other interested investors? A solid BATNA prevents you from giving away too much equity too early
How to use it:
Define your BATNA. List out your best alternatives. Be brutally honest. No fantasy plans - only real, viable fallback options.
Evaluate each alternative
What are the pros/cons? Time, cost, energy, emotional impact?Strengthen it before negotiating
Can you improve it by lining up other offers, gaining new info, or securing resources?Use it as your negotiation anchor
Go into the negotiation with clarity: “If this doesn’t meet my bar, I walk.”
Prompts for application:
What would I be willing to accept, considering my best alternative?
What is the worst-case scenario here, and how does my BATNA compare?
How can I improve my BATNA before entering this negotiation?
Sources:
Getting to Yes by Roger Fisher and William Ury
BATNAs in Negotiation: Common Errors and Three Kinds of “No”
