I own a yarn store, with up market, unique yarns. Our target market are 20-40 year old knitters, who are computer savvy, with disposable incomes. I was a fresh, contemporary design, maybe even 'modern vintage'.
I also have a spinning store http://www.spunout.com.au, and the logo was 99 designed!
Think young, think classy, think simple, not clichéd.
I don't really want anything sheepy, and the examples of logos I have used that have sheep in are more about the style rather than an actual sheep, ie vintage style or sketched.
I've attached photos of what a skein of yarn looks like, so you could loosely incorporate that into the design, should you feel it fits? I'd rather not have the 'round ball of yarn' image, as a lot of knitting yarn on the market is sold in these twisted hanks.
We don't cater for granny knitters AT ALL.
Our website will have lots of white space, very similar to the hand spinning store mentioned above.
Two colours max, possibly sketched black/grey logo. Try me!