Blog » Business Tips » Why Does Your Small Business Need a Logo?

Why Does Your Small Business Need a Logo?

Updated on February 1st, 2022
Need a Logo Designed

You’ve probably heard this before, but it’s worth saying again: every great business needs a great logo.

A great logo design is an absolute must for any new business looking to stand-apart from the competition and authentically connect with their customers. In fact, a recent study from the MIT Sloan Management Review found that effective corporate logos can not only have a positive impact on customer loyalty, but on actual company performance.

But if a study from MIT isn’t enough to convince you, here are five reasons you need a logo:

1. You Only Get One Chance to Make a First Impression

5am Juice Logo

This is a truism, but an important and relevant one.

The first impression you make on your potential customers or clients will set the tone for the rest of your relationship. If you make a great first impression, they’re going to be excited to learn more about you and your products or services, and be open to working with you in the future. Make a bad first impression? Let’s just say it’s going to be pretty hard to reverse the damage.

And what’s the first thing your potential clients and customers are going to see of your company? The piece of your brand that’s responsible for making that critical first impression?

That’s right. Your logo.

If you’re doing it right, your logo is on your website, on your business cards, on your marketing materials… it’s everywhere. And if you want to nail that first impression, you need to lead with a great logo.

Think of it this way: if you were going out to meet your customers in person, you wouldn’t roll into the meeting in your pajamas. You would put your best foot forward, throw on a suit, and package yourself in a way that tells your customers you mean business.

It’s the same idea with your logo. Think of a poorly designed logo (or no logo at all) as the branding equivalent to showing up at an important meeting in your PJs; you’re not going to make a good impression (or land the business). But a great logo? It’s like wearing your sharpest business suit and making a first impression that says you’re a business force to be reckoned with.

Do yourself a favor and make a good first impression with your logo. Your future business will thank you.

2. It Helps You Stand Out From the Competition

No matter what industry or niche you’re in, you’re bound to find yourself face-to-face with some serious competition. And if you want to succeed, you’ve got to find a way to differentiate yourself.

Now, obviously the most important way you need to differentiate yourself as a company is to offer real value to your customers. You need to either a) solve a problem the competition isn’t solving, or b) solve a problem they’re already solving, just in a better/easier/faster/more affordable way.

But here’s the thing: even after you have your brilliant idea to one-up the competition, you still need to grab your customer’s attention. You’re never going to get to show them the value you can add if you get lost in a sea of competitors.

Your logo is a prime opportunity to stand out. It says “hey, look over here!” and grabs your customer’s attention just long enough for you to show them what REALLY makes you different from your competitors and why they should work with you above anyone (and everyone) else. But without a great logo, you’re just another faceless option that stands out in zero ways.

A unique, attention-grabbing logo is a great way to set yourself apart from the competition and stand out to your customers.

city skyline logo

3. Why You Need a Logo – It Draws New Customers In – And Helps Existing Customers Stay Put

A big part of what draws new customers to your business—and what helps your existing customers stay loyal—is your corporate image. And your logo is a huge part of that image.

The right image—and logo design—will help you grow and maintain your business. When new and existing customers look at your logo, it needs to instill a sense of confidence within them. They need to think “Yep… this company has the image I’m looking for.” Because if they don’t, you risk them running right to a competitor whose image feels like a better fit.

For example, let’s say you own a restaurant. If you want to get new customers—and keep the customers you already have—you need a corporate image that’s professional, appealing, and says “you want to eat here.” If your logo looks sloppy, your customers will think your food is sloppy, too. And they’ll take their dinner business elsewhere.

If you want to grow your business you need a logo that accurately represents the image you’re going for.

4. It Separates the Amateurs From the Professionals

People want to work with professionals. They want to work with leaders in the space. They want to know the company they’re doing business with knows what they’re doing and is going to do an amazing job. And a great logo separates the amateurs from the professionals.

The first thing potential customers will do to figure out whether you’re an amateur or the real deal is check out your brand presence, whether it’s on your website, Facebook page, or driving past your business to check out your signage.

And what do all of those things have in common?

Your logo is plastered all over them.

Like we mentioned earlier, your logo is the face of your brand and often the first thing that people see when deciding whether you’re a company they want to do business with. And, in their eyes, amateur logo = amateur company. Awesome logo = awesome company.

When it comes to deciding which company they want to work with, above all else, your clients and customers want to work with a company they can trust. That’s the difference between working with an amateur and working with a professional; you trust the professional to do their job and deliver what you need. And if you want to establish yourself as a professional—and show your customers you’re a company they can trust—you need a great logo.

5. It Shows Your Customers Who You Are

green therapy logo design

There are a ton of reasons why you need a logo. But arguably the most important? It’s your chance to show your clients and customers who you are.

One of—if not THE—biggest strength you bring to the market is your uniqueness. The “special sauce” that runs through your brand DNA and makes you uniquely you. That “you-ness” is what will help you connect with the right customers on a deeper level and build a loyal brand fan-base that’s excited about what you’re doing in your space and will work with you for years to come.

And because that “you-ness” is so important, you want to infuse it in everything you do. Your logo is the perfect opportunity to put that “you-ness” front and center for the world to see.

What are you about? Are you fun and casual? Traditional and trustworthy? Edgy and tech-forward? You want to be sure who you are is communicated in your branding so you connect with the right audience. And there’s no better opportunity to showcase who you are than in your logo.

There’s no arguing: you NEED a logo. And now that you know why, it’s time to get out there and get that logo created!

Pamela Webber

Pamela Webber

Pamela Webber is Chief Marketing Officer at 99designs. She is passionate about using data to derive customer insights and to find “aha moments” that impact strategic direction. In addition to her background as a marketer, Pamela brings a host of first-hand experience as an ecommerce entrepreneur. Prior to joining 99designs, she founded weeDECOR, an ecommerce company selling custom wall decals for babies' and kids' rooms, and also worked as an executive marketing consultant for True&Co, a wildly successful ecommerce startup specializing in custom-fitted women’s lingerie. You can follow her on Twitter @pamwebber_sf.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More