Thought I'd share a bit on how the logo-creation process works for me. And since I'm in the process of designing my own new logo, here is one of my ideas. So far, I've only slightly refined this one. There are a few things I need to tweak here and there (like the thin/thick ratios and adjusting some of the curves), but I'm sitting on it for a while to see if it grows on me. That's the luxury of being the designer AND the client! :-)
First, I did a loose sketch with ink on paper, and scanned it into Photoshop.
Then I placed the image into Illustrator, traced it, and made the lines into vectors. "Vectors" are what give the image the smooth lines, as opposed to the pixelated edges in the scanned version. I also added a rule around the image, to contain it and make it more of a "unit", instead of just letters floating in space. Notice how the rule around the letters now creates negative space that can sometimes be quite interesting. (Negative space is the white area.)
Next, I reversed the image to emphasize those negative spaces a bit more, and also just to see how the image looked as a white on black.
Finally, I began to play with color. I'm starting out with 3 or 4 colors, because I'm hoping to get business cards and stationery digitally printed pretty inexpensively. However, if I find out from the printer that the cost is too high, I'll change the logo to one or two colors. But for the sake of playing, the sky's the limit!
Color option 1: black, warm red, metallic gold (very classic, traditional colors)
Color option 2: black, warm red, different gold
Color option 3: salmon, purple, bright green (funky, modern colors)
Color option 4: dark tan, moss green, warm red (and I dropped the dot between W and D)
Color option 5: black and green (with dot)