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In an increasingly advanced digital era, branding is one thing that should not be ignored in business, including Micro, Small and Medium Enterprises (MSMEs). One important component in branding efforts is having a logo.

Yes, according to the Islamic economics and economics journal, a business can be represented in a logo, either through a business or company name, one or more words, or a combination of both, which can be in the form of letters or symbols. In short, a logo is a symbol of business identity. But in the context of MSMEs, which often have limited resources, attention in terms of a business logo may be seen as something not so important. In fact, a well-designed logo is not just a “sweetening” aspect of a business, but also a valuable asset that can help increase customer trust, strengthen brand image, and differentiate MSMEs from their competitors. Therefore, in this article, we will elaborate on why logos are so important for MSME businesses. Check out the article until the end!

Logo at a glance

A logo is important for a brand or business, including MSMEs. Where a logo is an instrument that describes the identity of an entity, whose value can give an idea that the logo owner has a good and trustworthy image. Each logo form has distinctive characteristics that distinguish one from another. That characteristic is what gives its own character to the entity that owns it, such as a brand or company. Thus, the entity can be recognized and remembered by the public. That way, it is important for business people to create their business brand logo. But. Before that, you also need to know the types of logos so that you can determine the type of logo that is suitable and right for your business. Here are some types of logos that are commonly used by business people:

  1. Lettermark, a type of logo that consists of letters or initials of a business or company. For example CNN, NASA, and HBO.
  2. Wordmark, which is a type of logo that uses simple letters and focuses on the complete business brand name. For example, Facebook, Google, and Coca Cola.
  3. Pictorial Mark, a type of logo that uses an image-based symbol as a business icon. An example of this is used by Apple.
  4. Abstract Mark Logo, which is a type of abstract logo inspired by geometric shapes or abstract shapes that represent the business brand. For example, the Chanel and Adidas logos.
  5. Mascot Logo, a type of logo with a mascot or using a character that represents the business. For example, the KFC logo uses an illustration of Colonel Harland Sanders as its icon.
  6. Combination Logo, a type of logo that combines several types of logos ranging from lettermarks, word marks, pictorial marks, abstracts, to mascots. For example, as found in the Burger King and Doritos logos.

Why does an MSME Business Need to Have a Logo?

A logo is a visual representation of a brand or business identity. Especially in the competitive business world, having a strong and effective brand logo is very important. It can also be used to promote a business both online and offline. Here are some reasons why a business logo is crucial:

Business Identity

One aspect that highlights the importance of a logo for a business is its ability to reflect the identity of the business. As a representation of the brand or business, a logo also gives an idea of how the business interacts with its customers. A business will be recognized by its consumers through the logo used. This is because the logo becomes a visual representation of the business identity itself. By looking at the logo, consumers can identify the various products or services offered. More than that, the existence of a logo also gives an indication to consumers, regarding the image that the business wants to display. The logo indirectly conveys a message about the character of the business.

Brand Recognition and Brand Image Reinforcement

A logo that has power and popularity can help build an impression in the minds of customers, making it easier for them to recognize, remember and identify the business. Consistent and well-integrated use of the logo in all marketing and communication materials will also enhance the brand image of the business. When customers see the business logo consistently across various platforms and media, they will connect more with the business brand and strengthen the business brand image.

Make a Professional First Impression

A well-made logo can give the impression that a business is professional. This is due to the logo’s ability to reflect the level of seriousness and dedication of the business to the business. With a professional impression, customers will feel more trusting and comfortable to make transactions with the business.

Facilitate Business Marketing

A strong logo can be an effective marketing tool. Businesses can utilize their logos in various promotional materials such as brochures, banners, websites, social media, and more. By having an attractive logo, businesses can attract the attention of more potential customers and strengthen the marketing message. Yes, customers tend to buy a product or use a service from a brand they already trust. A logo that customers already recognize will provide a great opportunity for them to buy a product or use a service.

Differentiation from other businesses

Business competition is a competitive market, it is important to be able to differentiate yourself from competitors. This is because competition is unavoidable. A unique and attractive logo can help businesses or to differentiate themselves from their competitors. By having a strong visual identity, businesses can attract the attention of potential customers and make them choose your business over competitors.

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There may be other businesses that offer similar products to your business. However, by having a logo, the business can create a difference between its business and other similar businesses.

A Brief Guide to Creating an MSME Business Logo

Now, you know why a logo is so important for a business, including MSMEs. Well, to make it easier and sharpen your understanding, here we summarize some guidelines or tips on creating a business logo:

Use Writing, Pictures, or Symbols

A logo can use letters, images, or symbols. You can also combine all three. When using letters, it is important to pay attention to the type of font and size that will be used. Choose a font that is appropriate, not tacky, and minimalist. This will increase the chances of your business logo being easily remembered by potential customers. Apart from using text, you can use symbols and images, make sure the symbols and images are in accordance with the type of business being run.

Create a Unique and Distinctive Design

A logo must be unique to be different from other business brand logos. You must pay attention to it so that the business logo remains original. By being different, your business logo will have its own characteristics. This will impress consumers with your business logo.

The Logo Should Represent the Brand and Business Tagline

It is important to display your business name clearly in the logo. Don’t let your business identity get lost in complicated colors or images. If it is not easy to read, then customers will not remember your business brand. Another impact is that there will be no good word of mouth. Customers need to understand who you are and to make that happen, your business brand name should professionally be an important prominent element in the logo.

Logo Should Communicate Business Values

Last but not least, before deciding on a logo design, make sure you know your business values. Consider the values, vision, and mission that you want to convey through the logo. These values can be incorporated into symbols or images that reflect them. For example, if your business is friendly and fun, you can use clean and simple fonts (san-serif) and bright colors. Whereas if your business is reliable, professional, you can choose a more formal typeface with mature colors, such as dark blue or maroon.

Logo must be registered with the DJKI of the Ministry of Law and Human Rights

After having a logo, register it officially with the Directorate General of Intellectual Property (DJKI) of the Ministry of Law and Human Rights. Please note that logo registration currently gets legal protection as a brand. By registering it, it will protect the intellectual property rights of your logo and prevent others from using a similar logo.

KH Contact

This is an explanation of the importance of a logo for a business. What about you, have you got the right logo for your business? Remember that a logo is also a long-term investment, so don’t forget to register it officially. Registering a logo is important because it provides legal protection, prevents piracy, avoids disputes, increases business value, facilitates trade, extends the protection period, and becomes proof of ownership in disputes.

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Well, to do so, KH pals can contact Kontrak Hukum. Together with professional experts, you can consult about logo creation including registration. It must be safe and easy because there is a brand analysis process first with a competent and officially registered IPR consultant, so it is guaranteed to be auto accepted by the DJKI! Let’s make your business logo business easier by visiting the KH Services – Brand Logo page. If you have other questions, just consult us at Ask KH or via direct message (DM) to Instagram @kontrakhukum.

Mariska

Resident legal marketer and blog writer, passionate about helping SME to grow and contribute to the greater economy.

Konsul Cabang Surabaya
Konsul Gratis