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1. To introduce your company to a potential customer

If you are small company trying to establish yourself online or offline then the first thing that you introduce to potential customers is your company logo. The effect your logo has on your potential customers or your website visitors will influence their buying decisions.

2. To create a good impact on the potential customer

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When meeting a prospective client, your business card would speak a lot about the type of company you are associated with and the quality of your service. A cheap looking card with a poorly done logo could instantly create a feeling of distrust in the client, and from here it would be an up-hill ride for you in order to sell them anything.

3. To effectively promote the services offered by your company

For service-oriented businesses, which do not have any tangible products that could be promoted to convince the customers, it is the image of the company logo alone that can be used to sway the buyer's mood. Therefore, such companies have to extra careful in the logo design they opt for.

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4. To distinguish your company from that of your competitors

A few years ago, it was sufficient to have your company name in text in order to go about your business. Today, however, with an increasing number of players competing for the same market it has become more difficult for companies to distinguish themselves. In fact, even the brick and mortar companies have to pay attention when it comes to their logo. A home made logo is no longer sufficient, especially in the case of internet based companies, to compete against the bigger companies, who may potentially have unlimited marketing budget

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