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Why is a Logo is Important to Your Business?

When you’re on the cusp of starting a new business, pursuing a passion project, or testing a concept, you may not think about designing a logo. Which makes sense considering all the other things you have to figure out, including what to call your new business, how it’ll operate, and when you’ll find the time to do it. As you inch closer to launching, the need for a logo will likely pop up, especially if you’re designing a website or business cards. Even still, you might be thinking, can I put it off a little longer? Here’s the thing: putting a visual on what you’re doing brings your idea to life and communicates it in a way that words can’t. The importance of a logo is that it gives your business an identity, makes your brand stickier, provides a foundation for your future branding efforts…and more! In other words, a logo is the building block of your visual brand and is the asset you can use to connect with your audience right away. Need more convincing? Let’s dive deeper into the 7 reasons why a logo is important for a business of any size.

1. It gives your company an identity.

As famed designer Paul Rand writes, “a logo doesn’t sell (directly), it identifies.” Let’s reiterate — the number one purpose a logo serves is to give your business (or organization, group, team, etc.) an identity. Think about how most people will interact with your company for the first time. Whether it’s through your website, a social channel, or a booth at a conference, you want to make a positive first impression — and it’s hard to do this with words alone. By giving your company a mark that fits into spaces both large and small, you’re strengthening your business name (and overall brand) and providing a visual to your target audience. You’re saying “hi” without being pushy or obnoxious.
“The ubiquity of logos, and their great power to unlock memories, feelings, and associations, are the product of 150 years of exponential growth in the field of advertising and corporate communications.” – Michael Evamy, Logo
That’s not to say your logo has to explicitly identify what you do or sell — for example, if you’re a finance company, you don’t need to include dollar signs or piggy banks in your logo. But what your logo does need to do is communicate your brand attributes (and personality!) using visual cues like colors, fonts, symbols, shapes, and slogans. And it needs to do it in a way that’s simple, straightforward, and adaptable across mediums.

2. It makes your brand stickier.

How many times have you forgotten the name of something, but can describe how it looks? In a world where people interact with hundreds of brands a day, you have milliseconds to capture someone’s attention and stand out. A distinctive logo makes your brand (and business) easier to recall because humans are wired to identify images and use them to derive meaning and stories. According to Optimal Targeting, our brain processes visuals 60,000x faster than text, and people remember 80% of images (versus 20% of text and 10% of sound). You can see this visual recall in action when you look at the results of this experiment, where 156 people were asked to draw ten iconic logos from memory, including Ikea and Burger King. While the results vary widely, most people do a good job capturing aspects of these logos, especially brand colors. When you’re designing a logo, think of the person who might see it on a sign, a social media ad, an event poster, or a sticker on a laptop — and then think about how you want them to remember it.
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