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If you’re aiming for a career in business or law, whether it’s in an international or city firm or just generally, ‘commercial awareness’ is a concept you’ll come across frequently. But what does it really mean? Simply put, it’s about understanding the inner workings of businesses and staying updated with current market trends. It’s not just about being familiar with the basics – but about knowing how different industries function, the challenges they face and the strategies they use to stay competitive. In the legal world, demonstrating commercial awareness is crucial, particularly when applying for training contracts. Here are some practical ways to build and showcase your commercial awareness.

Take on responsibility

To better understand how businesses operate, try taking on leadership roles within university clubs or societies. Running a society, organising events or negotiating partnerships and sponsorships will expose you to the organisational challenges and responsibilities that come with managing a business. These experiences will help you develop skills in project management, communication and strategic thinking, all of which are highly valued in business and legal environments. The leadership skills you gain here will also make you stand out when applying for roles or internships.

Get to know the firm you're applying to

When you apply for a role, particularly in a law firm, it’s essential to understand the firm’s structure and operations. By learning how the firm runs and what differentiates it from its competitors, you’ll gain valuable insights into its business model. Remember, law firms are businesses, too and the way they operate may mirror practices in other industries. If you can identify what sets a firm apart and where it could improve, you’ll not only demonstrate your knowledge but also impress interviewers with your ability to analyse and understand the firm's place in the competitive landscape.

Focus on a specific industry or market

Commercial awareness isn’t just about knowing general business trends; it’s about focusing on a sector or market that interests you. Whether you’re fascinated by technology, healthcare, or financial services, pick an area to specialise in and dig deep. Many firms excel in specific sectors, so being knowledgeable about a particular industry allows you to discuss the challenges and opportunities within that space. But keep in mind, staying on top of trends takes time. Your research should be ongoing – if you’re only brushing up on a topic the night before an interview, it’ll show. Make sure your commercial awareness reflects a long-term, genuine interest.

Join a business society

A great way to build commercial awareness is by getting involved in student societies related to business or entrepreneurship. Many of these societies organise activities such as business competitions, workshops and events where you can network with industry professionals. For example, you might participate in a pitch competition or a negotiation challenge. These experiences help you develop key skills like client management, pitching and negotiation, all of which are crucial in business and law. Moreover, they provide opportunities to engage with commercial issues in a hands-on way, giving you an edge when it comes to interviews and assessment days.

Chat with industry experts                                

Another great way to boost your commercial awareness is by speaking to people who work in the industries you’re interested in. Whether it’s through networking events, internships, or casual conversations, engaging with professionals gives you real-world insights into the business world. Ask them about the challenges they’re facing, the trends they’re watching and how they stay ahead in a competitive market. This not only broadens your understanding, but also improves your ability to discuss commercial topics confidently in interviews.

Do your own analysis

A solid way to sharpen your commercial awareness is by analysing businesses and their market positions. The SWOT analysis (strengths, weaknesses, opportunities, threats) is a simple yet effective tool for understanding a company’s performance and potential. You can apply this to any firm or industry you’re interested in. If you want to go even deeper, consider using the PESTLE analysis, which considers:

• political factors;
• economic factors;
• social factors; and
• technological factors.

Make it a habit

Commercial awareness isn’t something you build once and forget about – it’s an ongoing process. As you progress in your career, your understanding of the business world should deepen and evolve. Keep yourself updated on global events, industry shifts and market trends. Being commercially aware doesn’t just help you land your first job – it’s an essential skill that’ll serve you throughout your entire career. The higher you go within an organisation, the more important your ability to understand the broader business landscape will become. Regularly reflect on and refine your commercial knowledge to stay ahead.

Building your commercial awareness takes time, but it’s an investment in your future. By consistently researching, engaging with industry professionals and getting involved in hands-on business activities, you’ll not only become more informed but also demonstrate to potential employers that you have the skills and insights needed to succeed in the competitive worlds of business and law.