Developing your commercial awareness for early career applicants

Insight

01.10.2025

This guide has been produced to support those individuals who are applying to Farrer & Co, to help prepare for the process and to provide the best chance of success.

Why we have created this guide

Farrer and Co has a long and proud history of supporting those who are starting their careers and taking their first steps into the world of work. Every year we welcome trainees and apprentices into a wide range of roles across our legal and business services teams (Marketing, Finance & Risk, HR , IT, Knowledge, Learning & Development).

Find out more about how this scheme works

Developing your commercial awareness

When you are taking your first steps into the world of work, one of the key skills to consider is commercial awareness. But what do we mean by commercial awareness? In short, this refers to having an appreciation and understanding of how businesses and industries operate in the wider environment and, critically, how they make money. How businesses do this will differ depending on several factors such as:

the type of organisation they are
the industry within which that organisation operates
the products or services it sells
the types of customers (or clients) it has.

Take a law firm as an example. It offers specialist knowledge, experience, and expertise to clients looking for help with various challenges or opportunities. Clients pay the firm for this advice either based on time spent providing the advice or through a pre-agreed fixed fee. Typically, law firms operate across a wide range of industries such as manufacturing, financial services, and retail. This means their teams must develop an understanding of those sectors to ensure they can give the best possible advice to their clients.

The importance of commercial awareness

As you start out on your career, developing commercial awareness will help you to stand out from other candidates. This skill is something that most employers look for, particularly in the application and interview stage. By taking the time to develop commercial awareness, you are not only investing in your development but also demonstrating to potential employers your understanding of the world of business.

For businesses, employing people who have strong commercial skills is important in delivering the best service to their clients. This knowledge enables employees to apply their understanding to their clients’ businesses which adds value to those relationships and, in turn, gives clients the confidence that they are dealing with the right organisation to help them.

What are the key areas to consider when it comes to commercial awareness?

There are plenty of areas to consider when it comes to the business world and developing your commercial awareness. To help you on your journey, we have included some of the key areas to explore below.

Industry trends

It is worth researching what trends are emerging in different industries. Start by looking at those industries that interest you most. It might be retail, e-commerce, or property. In all industries and markets, the world of business is constantly changing and there is no shortage of content out there on what those trends look like and predictions about how they might change in the future.

Regulation

As industries and the world of business change, so does the regulation that governs and monitors what companies and markets do. It is worth researching what changes are taking place to adapt to those developments.

Technology

This one is huge! There seems to be an ever-increasing pace in the development of new technologies, such as Artificial Intelligence (AI). Advancements in technology create new markets, influence existing products, services, and industries, and have a profound impact on the world of work and business.

Financial markets

Financial markets are where people, companies, and governments trade things like stocks, bonds, and currencies. Financial markets have a significant impact on businesses and companies and having a basic understanding of how they work will help you in developing your commercial awareness.

Changes to consumer buying habits

The types of products and services we buy and the way we buy them are constantly changing because of cultural shifts, global economic changes, and technological advancements, and this directly impacts businesses.

Understanding politics and its influence on business

Politics has a profound impact on businesses as it shapes the regulatory environment, taxation, trade policies, and much more. As part of developing your commercial awareness, it is worth spending time to understand the political system, who the political parties are, what they stand for, and how their policies impact the business world.

Practical ways to develop your commercial awareness

Utilise social media and the internet for accessing business content

The internet is a great source of business-related information and content that can help you develop your knowledge and understanding. Spend time reading articles that are related to the world of business and what is happening in financial markets, retail, and other key areas. We have included some links to websites that are worth considering below.

Watch the news

The news is a great source of information relating to the world of business. News programmes frequently feature key stories and developments in business and will often provide a quick and useful summary of market trends and economic updates, both in the UK and globally. Click here to access BBC News.

Speak to family members and friends

Consider speaking to family members and your network of friends about how you can develop your understanding of business. Speak to them about topics you have heard about on the news to discuss their views and how it impacts them in their job.

Set up a LinkedIn profile

LinkedIn is a social media platform for professionals and is one of the world's largest and fastest-growing networks. You can connect with professionals, access a wide range of content, and find job opportunities on the platform and it can be a great source of knowledge and useful information.

Note: You must be over the age of 16 in the UK to set up an account on LinkedIn. You should always seek parental consent to use any social media platform if you are under the age of 18.

Listen to podcasts

Podcasts have had an exponential increase in popularity in recent years as a source of useful knowledge and insight. There are thousands of podcasts dedicated to the world of business, covering almost every aspect of how companies and the economy work.

Useful podcasts:

BBC Newscast

The Guardian: Today in Focus

ITV News: What you need to know

Understand the jargon

The business world is full of jargon which can at times feel like a different language is being spoken with words and phrases often being abbreviated. To help those considering a career in law, we have included a short jargon buster to help you understand some of the key terms.

SRA	Solicitors Regulatory Authority (regulates solicitors in England and Wales)
PGDL	Post-Graduate Diploma in Law (non-compulsory law conversion course - for those who did not study law at university who would like to undertake this additional prep course before SQE)
SQE	Solicitors Qualifying Exam (compulsory centralised assessment for anyone wanting to qualify as a solicitor in England and Wales from 2021 onwards)
BoE	Bank of England
CMA	Competition and Markets Authority
RCJ	Royal Courts of Justice
FCA	Financial Conduct Authority
CSR	Corporate Social Responsibility
ESG	Environmental, Social, Governance
Fee earner	A fee earner is someone who works in a law firm and directly generates income for the firm.
Barrister	A Barrister is a lawyer who represents people in the courts and provides specialist legal advice. In this case, they will have been “called to the Bar of England and Wales” having completed the right training. Barristers are mostly self-employed and work in chambers (the premises where a group or 'set' of barristers work from).
Solicitor	Solicitors provide legal advice to clients across a range of legal practice areas. Most of a solicitor’s work will take place outside of court, and they are usually employed by a law firm or a private organisation.
Lawyer	A lawyer is someone who is paid to give people advice about the law and/or advocate for them in court. The term 'lawyer' can be used to describe solicitors or barristers.
Practice area	A legal practice area is the type of law that a lawyer practices. Examples include corporate, dispute resolution, commercial, charity, property, and immigration.
Partner	A partner is a senior lawyer within a law firm who has a share in the firm and is responsible for generating revenue for the firm.