How to Start an SEO Business

Written by Dave Lavinsky

seo business plan
Starting an SEO business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful Search Engine Optimization business.

Importantly, a critical step in starting an SEO business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

14 Steps To Start an SEO Business:

  1. Choose the Name for Your SEO Business
  2. Develop Your SEO Business Plan
  3. Choose the Legal Structure for Your SEO Business
  4. Secure Startup Funding for Your SEO Business (If Needed)
  5. Secure a Location for Your Business
  6. Register Your SEO Business with the IRS
  7. Open a Business Bank Account
  8. Get a Business Credit Card
  9. Get the Required Business Licenses and Permits
  10. Get Business Insurance for Your SEO Business
  11. Buy or Lease the Right SEO Business Equipment & Software
  12. Develop Your SEO Business Marketing Materials
  13. Purchase and Setup the Software Needed to Run Your SEO Business
  14. Open for Business

 

1. Choose the Name for Your SEO Business

The first step to starting an SEO business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your SEO business:

  1. Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  2. Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
  3. Think about marketing. Come up with a name that reflects the desired brand and/or focus of your SEO business.

 

2. Develop Your SEO Business Plan

One of the most important steps in starting an SEO business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  1. Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your SEO business.
  2. Company Overview – this section tells the reader about the history of your SEO business and what type of profitable SEO business you operate. For example, are you a service, software, or education SEO business. Service businesses provide on-site optimization, link building, and other services to help clients improve their search engine rankings. Software businesses make and sell SEO tools, such as rank checkers, backlink checkers, and keyword research tools. Education businesses offer courses and tutorials on how to do SEO.
  3. Industry Analysis – here you will document key information about the SEO business industry. Conduct market research and document how big the industry is and what trends are affecting it.
  4. Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing SEO services like the ones you will offer?
  5. Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  6. Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
    • Product: Determine and document what products/services you will offer 
    • Prices: Document the prices of your products/services
    • Place: Where will your business be located and how will that location help you increase sales?
    • Promotions: What promotional methods will you use to attract customers to your own agency? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  1. Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  2. Management Team – this section details the background of your company’s management team.
  3. Financial Plan – finally, the financial plan answers questions including the following:
    • What startup costs will you incur?
    • How will your SEO business make money?
    • What are your projected sales and expenses for the next five years?
    • Do you need to raise funding to launch your own business?

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3. Choose the Legal Structure for Your SEO Business

Next you need to choose a legal structure for your SEO business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the SEO business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to be an SEO school lang and . The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an SEO business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an SEO business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your SEO business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your SEO Business (If Needed)

In developing your SEO business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an SEO business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an SEO business that they believe has high potential for growth.

 

5. Secure a Location for Your Business

Having the right space can be important for your SEO business, particularly if you’d like to meet potential clients.

To find the right space, consider:

  • Driving around to find the right areas while looking for “for lease” signs
  • Contacting a commercial real estate agent
  • Doing commercial real estate searches online
  • Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

 

6. Register Your SEO Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

 

7. Open a Business Bank Account

It is important to establish a bank account in your SEO business’ name. This process is fairly simple and involves the following steps:

  1. Identify and contact the bank you want to use
  2. Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  3. Complete the bank’s application form and provide all relevant information
  4. Meet with a banker to discuss your business needs and establish a relationship with them
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8. Get a Business Credit Card

You should get a business credit card for your SEO business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

 

9. Get the Required Business Licenses and Permits

To start an SEO business, you will need to obtain a business license and a permit to operate a business in your state. You may also need to register your business with the state or local government. You can find more information on the licensing and permitting requirements for your state or local jurisdiction online or by contacting your local government office.

 

10. Get Business Insurance for Your SEO Business

Other business insurance policies that you should consider for your SEO business include:

  • General liability insurance: This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Workers’ compensation insurance: If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance: This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance: This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance: This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

 

11. Buy or Lease the Right SEO Business Equipment & Software

When starting an SEO business, you’ll need some key pieces of equipment to get you started. First and foremost, you’ll need a computer and an internet connection. You’ll also need software that can help you with your SEO work, such as a keyword research tool, a backlink checker, and a plagiarism checker. You may also want to invest in some SEO course materials or coaching to help you get started.

 

12. Develop Your SEO Business Marketing Materials

Marketing materials will be required to attract and retain customers to your SEO business.

The key marketing materials you will need are as follows:

  1. Logo: Spend some time developing a good logo for your SEO business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  2. Website: Likewise, a professional SEO business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
  3. Social Media Accounts: establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your SEO business.

 

13. Purchase and Setup the Software Needed to Run Your SEO Business

The most important software for an SEO business is a keyword research tool. A good keyword research tool will help you find the right words to target for your SEO campaigns. Other software that can be helpful for an SEO business includes a website analysis tool, a link analysis tool, and a backlink checker.

 

14. Open for Business

You are now ready to open your SEO business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

 

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How to Start an SEO Business FAQs

No, it's not hard to start an SEO business. In fact, there are a lot of steps you can take to make it successful. Here are some tips:

  1. Make sure you have a good understanding of SEO basics.
  2. Choose the right niche for your business.
  3. Develop strong branding and marketing strategies.
  4. Offer quality services and customer support.
  5. Stay up to date with the latest trends and changes in the industry.

There are a few things you'll need to do in order to start an SEO agency with no experience. First, you'll need to learn about SEO basics. You can find a lot of information online, or you can take a course to get started. You'll also need to create a business plan and find potential clients.

There are a few different types of new SEO agencies that can be profitable. The most profitable type of SEO business is one that provides a comprehensive suite of services, such as search engine optimization, pay-per-click advertising, and web design. However, it is also possible to be successful with a more limited offering, such as only providing search engine optimization services.

The cost of starting an SEO business can vary depending on the size and scope of the business. However, most local many business owners will need some basic equipment, including a computer, internet access, and software. Additionally, most businesses will likely need to invest in marketing and advertising to generate leads. Startup cost can range from $500 to $5,000. 

Some of the most common ongoing expenses for an SEO business include marketing materials, website hosting and maintenance, and employee salaries. It's important to carefully consider these costs when starting an SEO business so that you can accurately budget for your business' success.

One way for an SEO business to make money is by selling its services to businesses who want their websites to rank higher in search engine results pages (SERPs). These businesses will typically pay the SEO business a monthly fee in order to have it optimize their website for certain keywords or phrases. Another way that an SEO business can make money is by selling advertising space on its website. Advertisers will pay the SEO business a certain amount of money each time one of their ads is clicked on. Finally, an SEO business can also make money by referring customers to other businesses that offer related products or services. When these customers purchase something from the other business, the SEO business receives a commission.

An SEO business can be very profitable if done correctly. There are a few things you need to do in order to have a successful SEO business.

The first thing you need to do is find a good SEO company to partner with. A good SEO company will be able to help you with everything from website design to link building. They will also be able to help you create an effective SEO strategy.

The next thing you need to do is create a good website. Your website should be well-designed and user-friendly. It should also be optimized for search engines.

The last thing you need to do is market your SEO business. You can do this by creating a marketing plan and targeting the right audience. You can also use online marketing methods such as PPC, email marketing, and social media marketing.

There are a few key reasons why SEO companies can fail. One of the main reasons is a lack of understanding of how SEO works. A lot of business owners think that they can do it on their own, or they hire an inexperienced consultant who causes more harm than good. Additionally, some business owners don't bother to track their results and simply throw money at the problem without seeing any improvement in their rankings. And finally, another common reason for failure is when business owners stop investing in SEO once they see some initial success – eventually their rankings will drop and they'll be left scrambling to catch up again.


 

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