I'd advise not to do it yourself. There are lots of resources out there. If money is an issue try contacting your local design school and post an ad for a student to do it either as a portfolio exercise or as a contest and the winner gets a free dinner (not cheap) or the like.
One of the biggest problems with the do-it-yourselfers is the software that you use. You need to have the logo as a vector graphic (vs. a rasterized bitmap) file of some sort. You will run into scaling problems (making the logo larger or smaller) if you design your logo in an imaging application like PaintBrush or any photo application.
Professional Designers will use Quark, Adobe Illustrator or Adobe InDesign or Macromedia Freehand to develop a logo. The first reason is that the logo will be a scalable vector graphic file. The second reason is that these applications allow for output to the same formats that printing houses use. Most printers will accept files from the applications listed above, as well, these programs have native output to PDF documents so that anyone can open and print the files.
If you must design your own logo there are Open Source Software programs that you can download to use. One of them is InkScape
, it is a project designed mainly for internet ready SVG files but has some provision for other output formats. The other is SodiPodi
, which proposes to be a full-function, Illustrator-like application but it is still under development and not yet fully stable.
In addition, I strongly recommend Robin Williams, The Non-Designers Design Book
(Peachpit Press, less than $14.95 USD) as it is probably one of the most instructive of its kind. It is not a perfect book but the guidelines and suggestions are realistic and practical. Any small business owner should have this book.
Finally, regardless of who designs your logo you should have no less than three different ones made up and have them subjectively reviewed by clients and prospects and base your choice on that, coupled with how the logo represents your business. Best of luck.