Introduction to Commercial Awareness
Commercial awareness is a term that often causes a lot of confusion and worry for candidates during the application period. But commercial awareness is not something to be afraid of, and it can be very helpful in your legal career. The Cambridge English Dictionary defines commercial awareness as ‘knowledge of how businesses make money, what customers want and what problems there are in particular areas of business’. This definition helps clarify what is being asked of us when commercial awareness is mentioned. Having a good understanding of these three elements will provide you with insight and expertise in a commercial and professional environment. This understanding is used to help clients mitigate and resolve issues that may arise as a result of a particular world event.
When I first started my applications, someone described commercial awareness a little something like this: ‘commercial awareness is looking at the bigger picture, what is going on in specific industries and countries that will impact my working life and the legal field’. This simpler way of looking at the term helped me understand it a little better.
So, you may be wondering, ‘How do I become commercially aware’?
This is often perceived as a huge task, something complicated that requires a lot of work, knowledge, and understanding. However, becoming aware of what is affecting your industry is actually quite simple. The best place to start is with downloading a news outlet app such as BBC News and switching on your notifications so you are aware of the main headlines. Having the news on at home while you eat breakfast or make dinner is also helpful. This does not mean you need to read every article published in the news, but anything you think relates to the legal field or that you find interesting may be worth the read. By doing this, you will stay up to date with global events and begin to build a solid foundation in becoming commercially aware.
Building on this, another great source of information is social media; LinkedIn, Instagram, TikTok. There are many great creators and posts focusing on the most recent headlines in the business and legal fields meaning that the information is just at your fingertips. Having a steady stream of information means you will subconsciously pick up insights as you scroll. LinkedIn is a powerful tool. With new content posted daily, it can help you become aware of what may impact certain industries and fields. While social media can be a fantastic resource, you need to keep in mind that it can contain misinformation. You have to take a cautious approach and make sure that the creators you follow are credible and refer to reliable sources.
One final source of information which can help strengthen your commercial awareness is content on a firm’s website. Often, there will be articles written by experts delving into the specifics on potential issues and new developments. This does not mean you are expected to understand every word, however, you may be able to get the basic understanding of the article which will help to improve your awareness. A great example is Pinsent Masons’ Out-Law, which publishes articles created by legal experts.
A top tip of mine is to find what interests you; find your niche. For me, I was interested in economics and through my A Levels I learnt a lot about trade. I found specific trade deals and tensions very interesting and would often read up on the latest information online. Having a particular interest can help you greatly in specific areas and is enjoyable at the same time. It could be anything ranging from politics to AI!
As you can probably infer from the above, commercial awareness is not something that develops overnight. There is no clear-cut line separating those who aren’t commercially aware from those who are. Take your time building your knowledge. The smallest article, paragraph or meeting is a step in the right direction. There is no such thing as being too commercially aware and remember that everybody, ranging from students to partners, are always trying to learn more about what is happening in the world around them.