Most clients are muggles (non-design folk) and come to designers and/or signs shops to know better... we don't always...
Once we lose our clients confidence, then they could feel that they know better... "the customer is always right" is a retail principle - not part of the design process. If you are selling signs, then make the customer happy, if you are selling design, make sure the client know how you came to this conclusion. If you can not sell it, give them crap and move on...
What they had before should tell you what direction they may have wanted to go...
I would invest in some time making a quick design brief, that way you have a target to hit.
First thing I noticed about this "logo" is that it's not a logo... it's a layout... very sign-shop looking (not a good thing by the way)
Sign shop logos/layouts suffer from many of the issues your layout has.
-- Poor choice of type
-- Too many typefaces
-- Clip-art looking
-- Clip-art elements not matching each other
-- Too many different type effects, I see outline with drop shadow, then a thin outline, then at the telephone number 2 outlines... lay off the effects...
-- Lack of legibility - Outlines - they make copy hard to read
-- Too crowded
-- Lacks rhythm and hierarchy
-- It's unfortunate that it's a red door, it will be easier playing with color choices once the layout is cleaned up
If it were me -
-- Make a design brief so you have a target to design too
-- Incorporate the design process - mostly, research...
-- Stop collaging like a sign shop - each element should have purpose and reason...
-- Be able to tell the client how and why you came up with it...
-- Do not use this layout in your portfolio...
-- If you are new to this, invest in sites like Skillshare and Lynda.com and magazines like Signcraft to learn the design process and what makes a good layout...