The idea that good design can improve how people perceive your business has long been a part of a designer's sales tools. They try to convince you that by improving your image, maybe creating a new logo or changing the way you communicate with your customers you can somehow improve sales and improve your bottom line. But are they right?

Over the years many companies have been sceptical about these claims because of a lack of concrete evidence. Designers struggle to back up their claims with written evidence and so this argument for good design often falls down at the first hurdle.

Companies fail to understand why they should invest time and money in improving their visual identity if there is no tangible result.

However, last year The Design Council released the results of a groundbreaking study on the link between the use of design and financial performance. The study published in March 2004 finally recognised the direct relationship between effective use of design and financial performance.

The study looked at 166 design-led UK quoted companies over a period of ten years from 1994 to 2003. A group of 63 companies were recognised as effective users of design. This was based on the fact that they consistently appeared in the listings at various design award schemes.

The study reveals these 63 companies outperformed both the FTSE All Share and FTSE 100 indices by around 200% between 1994 and 2003.

The Design Council is a professional body which supports the work of the UK design industry. It works to demonstrate and promote the vital role of design within business and the wider UK economy.

A recent study by the Design Council, Design in Britain 2004-05, based on an annual business survey of 1,500 companies of all sizes and sectors, shows companies using design to innovate and stand out are growing faster than their competitors are.

According to the in-depth research, a third of the UK's fastest growing companies see design as integral to their business, while only 11 per cent of businesses with a decreasing turnover have this view.

The figures confirm the impact of design across sales, profits, quality, share price, market share and competitiveness.

Using design throughout your business ultimately boosts the bottom line by helping you create better products and services that compete on value rather than price.