First, it is important to understand that your BUSINESS should have an identity!  It's the critical first step in branding. Second, the identity should reflect your business image, be appealing to your target and be professional.

And finally, the answer to this month's question... A good business identity is comprised of several elements all working together harmoniously to represent the business well, give a good 1st impression and establish credibility...
font, color, name, tagline, logo and so on. 

Here are a few tips to help you assess whether a business identity is "good" or not...
<> Is the "logo" recognizably CLIP ART? (Not "good")

<> Does the color fit the business? (there is a reason why Burger King, McDonald's, Pick Up Stix, and a slew of other restaurant use RED and YELLOW in their logos... the colors are known to make people HUNGRY!)

<> Is the font appropriate? If it's a child care center then 
"Comic Sans" could be an OK font. If it's a technology business, "Comic Sans" is NOT appropriate!

<> A tagline can be clever, but should not be confusing. It should be a further description of your business and hit your target's fear, pain or desire. (i.e. this agency's tagline is "Making Your Marketing Effortless"...  another great tagline is Cingular's "Raising the Bar" or Target's "Expect More. Pay Less.")

<> What does the target audience think?? Yes, a business' identity is its first step in marketing itself.  If the target doesn't connect with the brand/identity, then the business will have a tough time in future marketing efforts!

What's up with your identity? Based on the questions above are you due for a revamp of your identity?  Or do you need to establish one for a new business?