SEO or “search engine optimization” is a technique used to drive traffic to websites from search engines such as Google, Bing, DuckDuckGo, and more.
Businesses and consultants who specialize in SEO are in high demand because they help clients enhance the visibility of their products and services. They achieve this by ensuring that their web pages appear prominently in organic (unpaid) search engine results. Unlike paid search options, organic listings do not incur a fee when visitors click on the link.
This article explores the steps involved in starting an SEO agency.
Step 1: Create a business plan
A business plan helps define your business, establish your goals, and outline how you will achieve them. Additionally, a well-crafted plan can attract new business partners and secure financing.
Creating a business plan is like developing an SEO strategy for a client. You need a comprehensive understanding of your target market, the relevant industry verticals, and the companies within those sectors that are likely to purchase your services.
It’s also essential to conduct a competitive analysis to identify your main competitors and then assess their marketing and pricing strategies, along with their strengths and weaknesses. Are there niche market opportunities they are not currently leveraging? If so, how can you take advantage of those opportunities?
Below is a suggested template for writing your business plan:
- Executive summary: Provide a brief overview of your SEO business and why it will be successful.
- Company description: Here’s where you get into more detail about your business and explain your competitive advantages and value proposition.
- Service offerings: Lists the SEO services your business will offer.
- Organization and management: Explain how your SEO company will be structured and who will run it. For example, will it be a partnership, LLC, S-Corporation? Who will be responsible for day-to-day management?
- Market analysis: What is the SEO industry outlook? Who are your target customers? What competition are you up against?
- Financing plan: If you require financing, such as a business loan, list your funding requirements. This section should also outline your financial statements and financial statement analysis.
- Marketing strategy: What is your overall plan for reaching your target market and turning them into customers?
Step 2: Choose a business structure
Your choice of business structure for your SEO agency will affect how you run your company, the taxes you pay, and how much risk you're comfortable taking with your personal assets. When picking a business structure, it's essential to find a balance between legal protections and potential benefits.
The four most common business structures for a digital consulting business are:
- Sole proprietorship: A sole proprietorship is a business owned and run by one person. There is no legal distinction between the owner and the business, meaning the owner is personally responsible for all debts and obligations incurred by the business. Additionally, a sole proprietorship does not require any state registration or filing.
- General partnership: This is the simplest form of partnership and is established when two or more individuals come together to create a for-profit business. In a general partnership, the owners have unlimited personal liability for the business's debts, including liabilities arising from employees' actions. No state filing is required to create this type of partnership.
- Limited liability company (LLC): An LLC provides limited liability protection by separating business assets from owners' personal assets, along with pass-through taxation.
- Corporation: A corporation is a separate legal entity owned by its shareholders, thereby protecting owners from personal liability for corporate debts and obligations.
For more information on business entity structures, read Comparing company types and Compare S corporation vs LLC.
Step 3: Understand the general legal requirements of your SEO business
Depending on your business structure and location, your SEO business may be subject to various legal requirements.
- Business licenses and permits: Regardless of your business entity type, most businesses must obtain licenses and registrations. For an SEO business, this may involve obtaining a general business license at the local or state level. In some jurisdictions, you may still need to obtain a home occupation permit if you operate your business from home.
- Register with the Department of Revenue: You may need to register your business with the Department of Revenue in your state and any other state where you have a nexus.
- DBA filing: If you do business under an assumed name or trade name, you must make a DBA filing with your state or local jurisdiction. This applies to all business types, including sole proprietorships.
- Obtain an EIN: If you form an LLC or corporation or plan to hire employees, you will need an EIN.
- Registered agent and BOI filing: You may need to fulfill other requirements, such as getting a registered agent and filing a Beneficial Ownership Information Report with FinCEN.
- Separate finances: By law, businesses like corporations and LLCs must keep their business finances separate from the owner’s personal accounts. But even if you choose a different structure, separating your business and personal finances can still be a good idea because it makes it easier to keep accurate records.
Step 4: Assemble the right tools
Key tools for any SEO business include keyword research, website crawling, performance tracking for keywords and sites, and performance reporting.
Ensure you have the software and services to streamline operations, increase productivity, and automate the simple, repetitive tasks you perform daily.
Depending on the size and scale of your SEO business, you may also need the following:
- Cloud storage and backup
- File sharing software
- General business software, such as Microsoft Office or Google for Business.
- Graphic design software
- Chat and collaboration tools
- Video conferencing
- Email marketing and automation software
- Social media management
- Project management
- Accounting and invoicing
- Payroll
Many of these tools are available as suites of services, so shop around to ensure you get the best pricing and support, and don’t waste money on features and functions you don’t need.
Step 5: Create an SEO service agreement
An SEO service agreement outlines the work you will perform on behalf of a client and the responsibilities of both parties. Don’t overlook the importance of a written contract. If you rely on an oral agreement, a client may come back and dispute the scope of work or even your pricing.
An SEO service agreement is especially important when it comes to disclaimers. Your clients must understand that you can’t guarantee a number-one ranking or that their website will rank on the first page of a search engine forever. There’s always a chance their site could get de-indexed. Your agreement should also include refund and guarantee policies.
In summary, an SEO service agreement is a valuable tool for both your SEO company and your clients. It helps prevent unnecessary refunds, keeps the client informed, and protects your business.
Step 6: Institute data privacy and protection best practices
It’s essential to understand data regulations that impact website owners, such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). The GDPR applies to any business that processes the data of EU citizens, regardless of whether the business is based in the EU or the rest of the world.
Data privacy laws can impact your SEO business in several ways.
- Be clear about the data you collect: Digital marketers must be transparent about the data they collect, how it’s used, and who it’s shared with.
- Obtain consent: GDPR and CCPA limit the type of data that you can collect and use. You must have a valid legal reason for processing personal data and have explicit consent from the consumer in the form of opt-in consent (such as cookies) before collecting or using their data.
- Develop a privacy policy: Your policy should explicitly state what types of data you collect, if you sell the data, when it’s shared, and how you use the data collected. The CPPA also mandates that you inform individuals how they can access, change, or delete your data on file.
- Vendor plug-ins must comply: Note that any vendors you work with, even via plugins, must adhere to these policies and laws. If you use a plugin that collects data, you must obtain the individual’s consent and detail this information in your privacy policy.
- Third-party data sharing: The CCPA requires that individuals may opt out of their data being sold to a third party. You must also obtain consent from persons between 13 and 16 years old before selling information or the consent of a parent or guardian in the case of minors under 13.
- Security measures: Your SEO business should also implement strong cybersecurity measures to secure client data. This includes network security, antivirus, regular software updates, strong passwords, backups, using HTTPS protocols and trusted plugins, controlling data access, and training employees on security practices.
Step 7: Keep up with industry changes
Change is a constant for the SEO industry. Search engines are always tweaking algorithms, which can significantly impact your client’s website rankings and search traffic.
Many, including Google, have also begun using AI-generated summaries or “AI overviews” at the top of search results. These synthesize information from various sources and can potentially decrease click-through rates. To stay competitive, businesses should create high-quality, detailed, and user-friendly content, leverage structured data that helps search engines understand content, and update older material regularly to align with evolving AI capabilities.
Generative AI is also shifting the SEO landscape. Although it makes it easier for brands to create content, many will create the same kind of content and must find ways to create more original, authoritative content to stand out.
Meanwhile, Google's loss in a significant U.S. search antitrust trial could greatly impact the search industry if the company’s appeal is unsuccessful. If Google is required to share its data due to antitrust rulings, competitors will be able to utilize Google's search data and algorithms to develop their own search engines more quickly. As a result, SEO professionals will need to adjust their strategies to accommodate additional search platforms.
