I read a story not long ago that said that the Pepsi company could lose every bottling plant, every truck, every office - everything they owned - and get a loan to replace it all simply by using their logo as collateral.

When it comes to branding, there’s almost nothing that’s more powerful than a good logo. McDonald’s, Pepsi, Nike and other large companies are recognized the world over simply by their logos.

Think how tough it would be to find a Pepsi in a Japanese grocery store if all you could see was Japanese text. It’s the logo that identifies the brand.

And while your business logo might not gain that kind of recognition, it can help to solidify your brand with your customers.

Imagine sending a mouse pad or cup holder with your logo on it to your customers instead of elaborate marketing brochures or other materials. A good logo will help keep your business in the mind of your customers more than anything else.

So how do you create a good logo?
Unless you’re a skilled designer, you may want to work with a professional to come up with something that suits your business, but here are a few things to keep in mind.

Simple is better - Think of the logos mentioned earlier. McDonald’s golden arches, the Nike swoosh and the Pepsi circle. All of these logos are powerfully simple, but still effective.

Another reason to keep it simple is when it comes to printing your logo. While nearly all designs will work fine on the web, there can be problems when it comes to using them in different areas.

A simple design can usually be printed in a variety of mediums without losing clarity. For example: elaborate logos might not be able to be silk-screened onto shirts without losing fine details or might become difficult to see if printed in a small size like on a letterhead.

Graphic representation - Using illustrations, graphics and photos that tell people what your business is about is also effective in logo creation. Incorporating a graphic of a camera into your logo can let people know that you’re a photographer without having to say it.

All text - If you don’t use a design or shape for your logo; you can try a text-based logo. These logos use words and type either by themselves or combined with other kinds of artwork, but they don’t have to be boring. Think about logos like Federal Express, Coca Cola and Disney.

Color & BW - Your logo should be designed so that it looks good in both color and black and white printing. Again, while a full color logo on the web will look good, it might prove to be too costly to print if you’re putting it on physical marketing materials.

Define your brand - A good logo helps a business define what it’s all about. And good logos aren’t put together during lunch. Consider the UPS logo. Did you know that the particular shade of brown used for UPS was chosen because it represented professionalism and elegance? The shield reflects security.

And although the logo has been tweaked over the years, the brown color and shield remain because they define UPS and what they stand for.

Keep in mind that these companies paid big money for their logos and spent a lot of time to get it just right. You don’t have to shell out a fortune for a solid logo, but you should take the time to explore as many different possibilities as you can before you settle on a final design.

Having a good logo probably won’t be THE deciding factor as to whether or not your business succeeds or fails, but it can help customers remember you and feel better about doing business with you.