New businesses: Should you spend your money on a logo or a website first?

Website or logo first

Recently, I sat down with a friend who’s starting a new business. He wanted to chat about the costings for a logo and website.

Now, in the perfect world, he would have at least $10,000 to $15,000 to spend on those things. A budget in that range would allow us to:

  • Do a detailed discovery consultation,
  • Understand the market (clients and competition) properly,
  • Understand the brand the new business is trying to build, and
  • Ensure all the collateral (logo, stationery, website, advertising material) they go to market with is on point and will work hard for them.

Like most people who are just starting out, however, my friend’s budget was a bit more limited than that.

It was more like $5000.

So, then the question was, “If I only have $5000 to spend, where’s the best place to spend it?”

My response? On a website.

The reason being, a simple, low-cost, text-based logo will do the job to start with, but a low-cost, crappy website will not.

If you’re a brand-new business, word-of-mouth is likely to be your biggest driver of work.

What’s the first thing a potential customer/client will do if your services are recommended to them? They’ll go check out your website.

If you don’t have a website, people will wonder why. You don’t want to make people wonder!

If you do have a website, but its level of professionalism and design doesn’t match up with what people have said about you, there will be a level of disconnect there. One that suggests, ‘This person isn’t taking their business all that seriously.’

If you have a website that’s been professionally designed, not only will it give a great first impression of your business, it will also make it easy for the visitor to find the information they need to feel comfortable engaging you. Then, it will make it easy for them to contact you. By the time they contact you, you won’t have to be doing any ‘selling’ to them. All you’ll need to do is close the sale.

Three other reasons you’d spend money on a website before a logo:

  1. A logo is not the 24 hour a day, 7 day a week salesperson your website is.
  2. A logo doesn’t tell people about you and what you offer as much as a website does.
  3. A website can generate the income you need to be able to afford a professionally designed logo. The reverse is not true.

So, when should you spend money on a logo?

  1. If you’re starting a new business, have already budgeted $5000-$10,000 on a new website, and have a further $2500-$5000 to invest. Or …
  2. Once your business is generating enough of an income to allow you to do your logo and branding properly. This is what my friend Dan did. He started his brewery with the logo on the left, and once it was generating enough of an income, he commissioned the logo on the right. The logo on the left, it did the job at the start. No one was rejecting his beer because they hated the logo. Once they had the budget to produce the logo on the right, however, that’s when things really went next level.

Black Hops Brewery

1 thought on “New businesses: Should you spend your money on a logo or a website first?”

  1. The choice is pretty obvious. Always spend your initial investment in something that will make your business grow. A logo won’t do that. Great article. Cheers!

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