Why is commercial awareness important? 

Law firms are businesses. They compete for clients, manage costs, and aim for profit just like any other company. That means solicitors need more than just legal knowledge. They have to understand their client’s goals and the bigger business picture.

So, why is commercial awareness important? It shows law firms you have the judgement, curiosity, and client focus they’re looking for. That’s why commercial awareness will keep coming up at every stage, from application forms right through to partner interviews.

Gaining commercial awareness

To stand out as an aspiring solicitor, it’s not enough to just say you have commercial awareness – you need to show how you can use it when answering questions. 

But don’t worry! Anyone can develop strong commercial awareness with a bit of focus and the right habits. Let’s break down what commercial awareness actually means, how to recognise it, and practical ways to grow this skill.

What does commercial awareness mean? 

At its core, commercial awareness is about understanding what makes a business succeed and recognising the external factors that can influence performance. It is not just about knowing what a company does, but also seeing how political, economic, and social factors, among others, can change the risks and opportunities a business faces.

Try thinking about a news story you’ve heard recently and consider how it might affect a specific business and its clients. 

For example, you might have read about a change in government policy on import tariffs. These changes could increase costs for a retail company that relies on imported goods, forcing it to adjust prices or find new suppliers.

That’s it – you’re developing commercial awareness! 

Define commercial awareness 

Commercial awareness is the ability to understand and keep up with the business world and to see how outside events and trends could impact a client or law firm. Put simply, it’s knowing the bigger picture and connecting it to the legal advice you give.

How to develop commercial awareness

The best way to develop commercial awareness is to build simple habits into your day. Keeping up with current affairs in general is a great place to start. Here are some ideas to help you get going: 

- Read business news for a few minutes each morning. Try sources like the Financial Times, BBC Business, or The Economist.

- Listen to podcasts about business or daily news during your commute. 

- Subscribe to the AllAboutLaw weekly newsletter for regular, tailored updates – sign up here.

When you’ve built the habit, pick one story each day and ask yourself: how might this affect a law firm’s clients? Over time, these small steps will build your knowledge and give you a real edge in applications and interviews.

Commercial awareness skills

Understanding commercial issues is one thing, but using that knowledge in real-life situations is what could set you apart. Here are some key commercial awareness skills and how they connect to your knowledge as a future solicitor:

- Financial literacy: Understand basic financial terms like revenue, profit, and debt. When you look at a business, being able to spot whether a company is profitable or struggling with debt will help you judge its stability. In a legal context, this skill helps you give better advice on deals, highlight risks, or help clients plan for growth.

- SWOT analysis capability: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework allows you to break down a business or legal situation and analyse it from every angle. For example, if governments introduce a new law, you could identify the opportunity it presents for clients to enter a new market, or the threat it poses if it increases costs.

- Critical thinking: When you read the news or hear about a change in law, critical thinking is about making connections. If there’s a strike in a supply chain or political unrest in a key market, can you see how this might lead to disputes, contract changes, or regulatory issues for your clients? Lawyers with strong critical thinking skills can spot legal risks and opportunities before they become obvious.

By developing these skills, you show law firms that you’re able to look beyond a textbook, understand the real needs of clients, and offer advice that supports their success.

Researching commercial awareness

Building your commercial awareness doesn’t have to be intimidating. With a bit of research and some simple habits, you’ll be ready to speak confidently about current affairs and their relationship to the law in interviews. Here’s how to get started with your own commercial awareness training.

What sources to use

Start by keeping up with broad business news like the Financial Times, BBC Business, or The Economist. You don’t need to read every page or article, but the top stories are a great barometer for what’s important. 

Next, pick out a couple of sector-specific sources that match your interests or the sort of law you’d like to practise. For example, TechCrunch is great for technology news, and TheLawyer.com digs into legal industry updates. Don’t forget law firm blogs too – they give a good sense of what matters to clients right now.

How to track stories and form a view

As you’re reading, pick a few stories to keep an eye on. See how they unfold over time and how businesses respond. 

Most importantly, try to think like a legal adviser:

- What are the risks and opportunities here?

- If a client asked for your advice about this, what would you say?

This kind of thinking is commercial awareness training in action, and it’s exactly what interviewers want to hear.

Taking note

To make life easier, keep organised notes so you can jog your memory later. Here’s a simple structure:

- Headline/topic: What’s the story?

- Key points: The main facts.

- Why it matters: How does this affect businesses or the legal world?

- Your take: What’s your opinion, or what advice would you give?

Give your notes a quick read before interviews or applications, and you’ll feel much more prepared. 

Practical ways of gaining commercial awareness

By weaving simple routines into your week, you’ll find it much easier to talk confidently about commercial trends, both in interviews and beyond. Here are some easy ways to boost your commercial awareness:

Build a weekly “commercial file”. Create a dedicated folder (digital or physical) where you save the week’s top business and legal stories. Every few days, add a new article, a podcast summary, or a case study. Review this file before interviews or assessment days so you always have fresh examples at your fingertips.

Choose a sector to follow. Pick an industry that interests you (finance, technology, energy, etc.) and start tracking its news. This gives you in-depth knowledge and shows recruiters you understand commercial issues relevant to their clients.

Summarise a story in 60 seconds. Practise giving a quick summary of recent news stories, including what happened, why it matters, and your view. This helps you get comfortable talking about commercial issues clearly and confidently.

Map a story to a practice area. When you read about a big business story or hear about it on the radio, ask yourself: which law firm practice areas (like M&A, employment, or intellectual property) would be involved? How might lawyers help the client? This connects day-to-day news with real legal work.

How AllAboutLaw events work

We might be biased, but AllAboutLaw events are a fantastic way to build your commercial awareness. They let you hear directly from professionals in panel discussions and take part in skill-building workshops. You’ll get insights into current trends, real-life cases, and the kinds of commercial issues law firms deal with every day. 

To make the most of these events, do a bit of background reading beforehand, jot down questions you’d like to ask, and make notes during the sessions. That way, you can easily remember what you learned and use these examples when talking about your commercial awareness in applications and interviews. See you there! 

Proving your commercial awareness

Now you know how to build your general commercial awareness, it’s just as important to showcase it to firms and their recruiters. 

Here’s how you can demonstrate your commercial awareness at every stage of the application process.

Demonstrate commercial awareness in applications

In your written applications, prove your commercial awareness by weaving real business stories or trends into your answers where relevant.

For example, when asked why you want to work at a certain firm, you might mention a recent deal or sector development they were involved in and explain its significance. Use clear, appropriate examples to show you understand how business issues affect law firms and their clients.

Demonstrate commercial awareness in interviews

During interviews, you’ll often be asked directly about commercial awareness. Questions could include:

- Can you tell us about a recent business story that interests you?

- Describe a major challenge facing businesses in one of our key sectors.

- How might this news story affect our clients? 

Practise summarising a story in a minute: explain what happened, why it matters, and what the risks or opportunities are for businesses or clients. 

Be sure to connect the story to the firm or the role you’re interviewing for, showing that you’re informed and you can apply your insights.

Demonstrate commercial awareness in assessment centres 

Assessment centres are all about showing your commercial thinking in action. In group exercises or case studies, talk through the commercial implications of each scenario: who are the stakeholders? What’s the business context? What should the client consider before taking action?

If appropriate, suggest which practice areas might be involved. Remember to highlight the impact on the client’s business, not just the legal technicalities.