Basically what Necroticart said is all true.
It really depends on how simple or complex your image is! Lots of gradients/shading = Photoshop (you can use vector graphics, but it DOES take a lot longer!)
Another alternative to Photoshop that is quite good and free is GIMP. I use it from time to time (although I always try to use Photoshop) and it is quite impressive considering it is free!
http://www.gimp.org/IMPORTANT: if it is a raster image i.e. it is pixel based, it needs to be a high res (300 dpi is good) so that it comes out well when printed. Also, make sure it is the correct size before you start, you don't want to start stretching the image as there is a loss of quality.
Lastly, remember that there are several people on this forum who are always willing to help you out!
Good luck and show us what you produce!