Business logos designed in the correct way can do wonders for the image building of the business. But a bad business logo can be a disaster to the business as a whole. A logo design is the first image of a company which is viewed by the customers. It is the first impression and as the saying goes…The first impression is the last impression.

However, if a business logo is not able to communicate the desired message of the company to the customers, then it poses a downfall for the company. A bad business logo can confuse them and they might drift aware to another company as competition is fierce in the market. Hence, creating company logos with a purpose is critical for every business.

So What Makes a Bad Logo?

Inappropriate symbols and colors: 

Ever wondered why the London Olympic 2012 logo was a disaster? That is because when it comes to designing corporate logos, appropriate use of colors and symbols is imperative in generating the right response from the target audience. The symbols used in the London 2012 logo designed by Wolff Olins were unsuitable and not according to the needs of the London 2012 brand name.

Too many details and confusion:  

A logo design crowded with too many elements spells trouble for a brand. Small business owners and other businesses cannot afford to create confusion among the minds of their customers as to who they are and what they do. Hence, logo designers must be careful of the risk of using elements imperfectly in corporate logos.

Inconsistent with the company purpose:

Sending irrelevant messages to your customers is the last thing that small business owners can afford to do. Hence a bad business logo includes a logo design with an inconsistent message that is not parallel to the vision and purpose of the company. This is one of the reasons why small business owners fail. It’s because they cannot express their company purpose to their clients.

Unappealing to the customers:

Company logos are useless if they do not have the power and charisma of appealing to the target audience. The major purpose of a logo design is to compel customers to retain your company name and recall at the time of purchase decision. If your business logo is not relevant to your target audience, it will not be appealing to them.

Things to consider before designing company logos:

There are certain points that every small business owners must keep in mind before starting the branding process and logo designing.

• What’s the organization’s purpose of existence - what are going to offer to the market?
• Who are your target customers – what is your audience’s demography?
• What is your Universal Selling Proposition (USP) - what makes you different from competitors?
• How should the logo look and feel when being presented in front of customers, employees.

What creates purposeful company logos?

A company logo isn’t just a name, symbol or mark of the organization. It represents the true representation of a brand identity. A brand is backed by a strong logo that accurately depicts what the company’s mission is. But creating logos is not everyone’s ballgame. There are risks of using elements imperfectly in corporate logos. The best of logo designers have succeeded in establishing famous brands by incorporating a purposeful corporate logo in the branding process.
In order to avoid logo designing mistakes, following points are useful in making a purposeful and effective logo:

• Meaningful; Your business logo must convey the company’s message to its target market.
• Recognizable; Your clients should be able to identify your logo anywhere and anytime.
• Simple; The design in your company logo should be straightforward and easily comprehendible.
• Memorable; It should be made unforgettable and long-lasting for at least the next decade.
• Appealing; your business logo should be designed to target your desired audience.

Let us suppose, McDonalds’ decides to radically change its corporate logos. Now imagine travelling on the highway, you are searching for the big “M” to spot a McDonalds’ outlet but you don’t see any. Since the logo design, which you have been so used to, has been changed, you won’t be able to recognize the franchise from far away… would you?

The above assumption is meant to explain the possible impact of changing your company logos. Like every human being, an organization has an identity of its own. A corporate identity includes a name and a representative logo. The name of the company is complemented by its logo as the face of a company. Making alterations or even the slightest of modifications to the company logo can have dual effects on the corporate identity and its brand equity.

Let us have a look at the possible impacts of modifying company logos, both positive and negative.  

Positive Impacts of changing your company logo:

• A change in company logo revitalizes you business appearance and gives a fresh look.
• When an organization gets stuck in a controversy, a change in company logo can help pacify matters.
• A modification in your company logo can help accommodate your growing business portfolio.
• Alterations in company logo can assist in repositioning of the brand identity in the mind of customers.

Negative Impacts of changing your company logo:

• Customers may not recognize the newly changed identity or simply may not like the new company logo.
• Too many modifications can spoil your company logo.
• Due to stationary items (business cards, letterheads, corporate brochures etc) carrying the previous logo, a redesign incurs great replacement costs.
• The customers who are bonded with the existing company logo may not readily adopt the changes.

Any modification in your company identity should be based on an extensive research of the potential repercussions of the redesign. In a nut shell, changes in your business logos should be reasonable and in alignment with your previous corporate identity.