The graph below is from a decade-long study conducted by the British Design Council from 1994 to 2004 that measured the relationship between design and the price performance of shares on the Financial Times-Stock Exchange.
Image courtesy of Eglinski.
Their research found that companies who focused on the good design of their graphics, documents, and website (the red line) out-performed companies who did not (the blue and pink lines) by more than 200 percent.
A picture is worth a thousand words, which is why new businesses must have a good logo to find success. Consumers connect to companies and brands through the image; in effect, your logo is your signature. It must be memorable, unique, and appealing to customers. A poor quality logo can hurt your bottom line, so when starting a new business, you truly need to have a good logo representing your brand.
What makes a good logo? Though there is no one thing that makes a logo good or bad, there are a few characteristics that poorly designed logos share. Here five common logo mistakes that new businesses often make:
Hiring an Amateur Designer
Your company is worthy of an investment in your logo. Don’t turn to Fiverr or recruit a friend who has Photoshop on their computer. You are starting a professional business, and you should have a professional logo. Going with a less experienced graphic designer may seem like an easy way to save money, but that will leave you with a bad design.
Your logo can affect what customers think of your business for years to come, so you have to do your best to make a good first impression. Customers will trust your business more if you have a well-designed logo and less if you have a poorly designed one.
Even if you eventually hire a professional to redesign it, those customers will remember the original design and retain that impression. This may end up losing you money in the long run, whereas a well-designed logo can help customers remember and return to your business from the start.
However, whether you hired a professional or designed it yourself, don’t be afraid to redesign a logo that you aren’t satisfied with. A new logo can make a huge positive difference for your business’s image. Your logo is worth getting right, even if it takes multiple designs to find the right one. You wouldn’t cut corners on other investments for your business, so don’t do it when hiring someone to design your logo.
Using a Logo that Doesn’t Fit Your Brand
Brand identity can help businesses find success, especially as they are starting out. A strong brand identity can help you stand out from competitors and help customers recognize what your company’s values are. Logos are a key component of creating that reliable brand identity. Your logo must encapsulate your brand; otherwise, you will simply confuse your customers.
By using a logo that doesn’t properly represent your brand, you are making a promise to your customers that you can’t keep. And why would you want to use a logo that doesn’t fit your business? Your logo is a great opportunity to enrich, strengthen, and establish your brand identity — don’t waste that chance with a logo that doesn’t make sense for your business.
Creating an Unoriginal Logo
Imitation may be the sincerest form of flattery, but following popular trends or mimicking someone else’s logo won’t get you very far. A design intended for another company won’t accurately reflect your business’s identity. It should be a visual representation of your business and brand that is original to you and you alone.
Keep in mind that while trends are popular, it’s only for a moment. You need a unique logo that will stand the test of time, not feel outdated in a few months, and not be derivative of other trendy logos. Don’t be afraid to try something different or new, because a noteworthy logo will help customers notice, remember, and come back to your business.
Using Color Incorrectly
When used properly, color can add intensity and memorability to your logo, all while sending important messages about your business to your customers. However, when used incorrectly, color can cause an otherwise great logo to fall flat.
Keep in mind that you should design your logo before picking a color for it. Color should not be responsible for the impact of your logo; the design must be able to speak on its own. You may be displaying your logo on a variety of surfaces — paper, t-shirts, drawstring bags — and you may not be able to use color in every iteration. Don’t miss out on the strong effect your logo can have by letting its color do all the work.
Before committing to a color, think carefully about what message you want to convey with it. The color of your logo says a lot about your business and can cause your customers to feel certain things.
For example, red can promote strong emotions, while blue can have a calming effect. Do you want customers to feel intense or relaxed? Do you want customers to feel excited by your brand or do you want them to trust your brand? The right color choice can affect customers for years to come, so be mindful of how you choose to use it.
Not Updating a Logo
A good logo will carry the message of a brand, but should still be adaptable to new designs and updates. If you feel it’s time for something new, think about the reason you want to change it. Are you Gap or Netflix? You shouldn’t change your logo simply for the sake of change.
On the other hand, if your business expands or moves in a new direction, a stagnant logo can hold you back from reaching your full potential. If the message of your brand or the fundamentals of your business change, then it’s time to think about updating your logo.
While your logo alone will not make or break a new business, you still need to put your best effort into creating a high-quality logo that is representative of your brand. Almost all of these common mistakes are avoided easily as long as you think critically about what’s best for your business. As long as you keep the fundamentals of logo design in mind, your logo will help your new business triumph.
About the Author: Avery T. Phillips is a freelance human being with too much to say. She loves nature and examining human interactions with the world. Comment or tweet her @a_taylorian with any questions or suggestions.