How to Start an SEO Consulting Business

Last updated on April 2nd, 2024 at 11:43 am

 

If you want to start an SEO consulting business to tap into the market of millions of clients and billions of money for opportunities, here you are.

Due to the development and rapid increase in digitalization, Search Engine Optimization (SEO) services are among the most demanding digital marketing services by companies and sole entrepreneurs interested in growing their businesses through online platforms.

In the United States search engine optimization services market cap is worth $45 billion and expected to go up to $80 billion by the year 2032.

All businesses without SEO professionals outsource services at a fee through trusted consulting agencies costing about $100 per hour or even more.

To have an edge for business opportunities offering search engine optimization services, understanding your target audience is very important in the first place.

Setting up the business is quite challenging when you are just getting started, but all is going to be covered in this simple guide to start a successful profitable SEO agency.

What Is An SEO Consulting Business?

This is a consultancy that offers search engine optimization services to other businesses through their online platforms to improve visibility in search engines to generate traffic.

It has a lot of business value to new startups and established companies boosting ranking and traffic for business purposes.

Main Types of SEO Services

There are three main types of search engine optimization services in the industry. These involve several activities to be done for effectiveness and efficiency in service delivery.

The three main types of SEO services required for business purposes are as below.

• On-Page SEO

This involves improving website content for rankings in search engines using relevant keywords, images, Meta descriptions, internal linking, and other on-page SEO strategies. Content that is not well optimized will not rank for search to attract traffic for business.

• Off-Page SEO

This involves activities done outside the website to improve rankings in search engines such as backlinking and brand mentions to generate traffic for business. Backlinks are very vital in off-page SEO and must be quality for best results.

• Technical SEO

This type of SEO involves working on the website to ensure that search engines and individuals navigate the site effectively. Technical search engine optimization strategies are aimed at improving site speed, user experience, and site crawling.

Pros and Cons of  Starting an SEO Consulting Business

Let’s look at the pros and cons before going any further with starting an SEO business.

Pros

• You work at your schedule
• It is a scalable business
• You don’t need a lot of investment capital
• It is possible to work from anywhere when you have an internet connection.

Cons

• It is a competitive business
• Takes time to build trust with clients for business.
• Associated with information security threats

13 Steps to Start an SEO Consulting Business

The simple steps guide will help you get started from scratch as long as you have the skills to enable other businesses succeed to get traffic for conversions.

1. Research the SEO Consulting Business

Understanding the business in and out before getting started is very important since it helps you to know your competitors, the target audience, the general market behavior in the industry, and more.

Market research should be defined and planned in a way that will enable you to achieve the desirables in terms of the goals of the activity for example analyzing the market trend, competitiveness, interviewing and surveying, SWOT analysis, and other relevant factors.

Compiling all the data through market research is an eye opener to all the challenges in place to devise means for solutions with an edge compared to the competitors.

2. Pick a Niche

How to start an SEO consulting business, you must identify yourself from other service providers in the business to have an edge. This might sound like you are limiting yourself but it is not true.

Individuals and businesses mainly offer opportunities to specialists compared to service providers without specialty at work. Niching down gives you a deeper understanding of what you are focused on but it’s not the case when you generalize.

There are some elements you need to put into consideration when deciding on niching down for example competitiveness, demand, passion, and level of experience.

Finding a niche involves targeting a specific industry, target audience size and location, and client interests to provide the best services for example marketing, finance, hotel and hospitality, nursing, and others depending on the interests of the business.

3. Make a Business Plan

During implementation, you need a business plan in place to effectively operate at different stages with convenience. Let’s look at the main components to take into consideration for a successful SEO consultancy.

• Company description

This is where the company goals, visions, missions, and other related items are captured. As a component of a business plan it gives details about the SEO business to clients.

• Financial plan

It is a component of a business plan where planned income and expenditure are captured for tracking. Through financial planning, the business can monitor finances effectively for accounting purposes.

• Strategic market analysis

Despite service provision, there should be a well-planned procedure to study the market for the services offered to make the most out of it. This involves analyzing market behavior, location, size, and more.

• Competitive analysis

This component aims at analyzing the competitiveness of the industry you want to serve. Through competitive analysis, you will understand your competitors’ challenges so that you can offer service with an edge.

• Organizational structure

This contains a list of board members and a hierarchy of authority in the SEO business. Like other businesses, you need a well-designed legal structure for an SEO business.

4. Get a Location

Though you can work from anywhere because it is an online service business, some clients would want to find you in a specific location for business. An SEO business with a defined physical location is more credible compared to an online business with no physical location.

Consider locating the business in an area where the cost of business setup is low for example rent, taxes, and other legal fees. You want to save on startup costs according to location but keep mind in the target audience for the services.

5. Register the Business

You need to register the SEO business with the appropriate authorities to start operations. Business registration is also part of the costs incurred to set up a formal business.

At business registration, you have to choose the right business structure for the consultancy as we are going to see. In detail, let’s check out some appropriate structures for the SEO consultancy depending on size.

• Sole Proprietorship

This is a business owned by a single individual with total liability to company proceedings hence sharing profits and losses alone.

• Partnership

Under this business structure members share liability equally during the financial year. However, this is not the case with a sole proprietorship structure.

• Limited Liability Company

It is a type of business structure where members are entitled to tax and liability protection benefits in the calendar year.

• Corporation

A corporation is a separate legal entity where business transactions and other formal dealings appear in the name of the company. Profits for the financial year are paid out to members in the form of dividends.

After choosing an appropriate business structure, get a company name to register it with the registrar for reservation. This will help to identify you from your competitors in the SEO business.

6. Register For Taxes

Since the business has to file returns every financial year, tax registration is very important. Sure, you have to pay taxes to the government despite being an expense to the business.

If you are an employer you need an Employer Identification Number (EIN) or a Social Security Number for a sole proprietorship. However, tax registration requirements are quite different in some states depending on business structure.

Consider deciding an appropriate calendar month for the financial year to ensure timely submissions to the tax authorities. Though there might be tax benefits in some states, tax registration is a mandatory requirement.

7. Get a Bank Account

An SEO consultancy is required to get a company bank account where transactions are made for example tax payments and other formal transactions. A company account streamlines accountability for income and expenditure for the calendar year.

Talk to your preferred service provider about account opening requirements depending on your business structure for guidance.

The Employer Identification Number (EIN) or a Social Security Number (SSN) for a sole proprietorship business, Articles of Incorporation, Directors, and a Business address are some of the account opening requirements requested.

8. Business Funding

The SEO consultancy requires funding to facilitate day-to-day operations for effective service delivery to the target audience. There are different ways in which to mobilize startup capital for the business as shown below.

• Personal savings

I don’t know about you, but money saved in a personal account can be used to facilitate the business. This saves you from using borrowed money that comes with high-interest rates.

• Family members and friends

Another alternative source of funds for the SEO business is friends and family members. Some will be ready to support you financially or become business partners.

• Government grants

Here you can get access to funding opportunities through platforms like grants.gov site. This platform mainly focuses on small businesses that are just starting looking for funding.

• Crowdfunding

Crowdfunding sites like Fundable and Wefunder provide new startups access to potential investors ready to offer financial support.

9. Process Licenses and Permits

Officially starting an SEO business requires possession of licenses and permits from the authorities for example state and local licensing agencies.

This is a requirement for every business in the United States that wants to start operating despite some differences in acquisition procedures

Some licensing and permit requirements for an SEO agency include the Federal Employer Identification which identifies the business with the Internal Revenue Service, the General Business License issued at the city level, a Sales Tax Permit, and a Certificate of Occupancy.

Consult with the authorities or an expert about licensing and permit acquisition best practices to fully comply with the state laws. Failure to observe the state laws may result in fines and penalties to the business.

Make use of online resources like MyCorporation’s Business Licensing Package for consultations concerning licensing and permit requirements to save consultation costs on business experts.

Sometimes the business language in online resources may be complex to digest, talk to an expert for professional guidance.

10. Build an SEO Team

Depending on the type of business structure, the SEO business requires a team of members to serve for effective service delivery. Even in a sole proprietorship business, you may at times need casual staff to assist at work.

Recruitment of staff should depend on the demand for a certain skill in the SEO business to avoid spending money on idle labor. This means you can hire workers gradually as the company grows to earn a decent income to accommodate the required number.

Outsourcing staff would cost a lot to the business when it has just started, consider free online platforms such as Fiverr, Upwork, Flexjobs, SimplyHired, and more for cheap quality workers.

When we are just starting, spending money on paid ads to acquire staff is quite costly but you can find cheap quality workers on free online platforms.

11. Get Insurance for the SEO Business

Consider getting insurance coverage against unpredictable events that may cost the business during service delivery. You need to get coverage on property damage, client lawsuits, injuries, and other threats that may result in abnormal costs.

This is a mandatory requirement for a professional business like a search engine optimization agency startup that deals with people’s information.

Despite insurance being a business requirement, consider purchasing only basic covers for a new startup to save.

Insurance requirements for business protection in some states are quite different hence consult with an expert for guidance. There are different forms of insurance covers to choose from for an SEO business.

• Professional liability insurance

It is also known as technology errors and omission insurance package. During the policy period, it covers against client lawsuits and other insured costs from errors made at work.

• Cyber liability insurance

This covers the business against cyber-attacks or data breaches and client lawsuits that may happen during the policy period.

• Business owner’s policy

This insurance package covers general liability and commercial property for an SEO business. It is a discounted package compared to purchasing a single policy at a time.

• Fidelity bonds

Another important insurance coverage is fidelity bond which protects the business when its employee steals something from the client during the policy period.

• General liability insurance

The insurance policy protects the business against liabilities in contractual work and commercial property leases for the policy term.

Save money on insurance premiums by shopping around for cheap but quality insurance service providers. Also, consider insurance covers that are worth investing your money in and appropriate to the new business.

12. Online Presence

To tap into a larger audience the business needs to establish a professional online presence. This includes a business website and appropriate social media platforms like Facebook, WhatsApp, Twitter, and Instagram handles.

Online platforms ease communication with stakeholders for example clients, staff, suppliers, and others. They can also be used as primary marketing channels for the SEO consultancy service.

For convenience purposes, rather than matching to business offices, some clients prefer using online platforms as a means of communication.

In the process of designing professional online platforms, you would want to hire a tech expert for assistance. There is quality cheap labor on gig sites like Fiverr, Upwork, Flexjobs, and other similar platforms.

13. Market the Business

Business marketing is another important step in starting up a profitable SEO business. To get the most out of marketing, first consider effective techniques like the 7Ps of the marketing mix.

Product or Service, Price, Promotion, Place, People, Packaging, and Process are some of the effective marketing tools businesses use to succeed.

• Product or Service

As an entrepreneur, the services offered should match the interests of clients in terms of delivery period, packaging, quality, and other service-related qualities.

• Price

The charges for the services offered should be competitive in the market because clients want to pay cheaply to save. Don’t sell cheap for the sake of selling make sure that you cover business costs to facilitate daily operations.

• Promotion

Promotion is also an important marketing tool to take into consideration for an SEO business. This includes discounting, offering free service, car adverts, using banners, posters, social media, and a business website.

• Place

Emphasis can also be put on business location for effective marketing and service delivery. This component of the marketing mix is aimed at targeting an audience for the service offered.

• People

As a tool used in marketing by the business to achieve the desired objectives, it should also be prioritized. A professional service-oriented SEO team will boost the business due to quality service provision.

• Packaging

The packaging for the SEO services is required to be informative, unique, and quality. Yes, it not only applies to products but also service packaging is a marketing tool.

• Process

A unique service delivery procedure compared to your competitors is an effective marketing tool. This means you need a defined system in place to use during service delivery

After putting the 7PS of the marketing mix right, let’s get it into the marketing strategies and channels the business should use to succeed.

• Research the market for the SEO business to know your customers and competitors in and out in for effective service delivery.
• Profile the target audience for effective marketing according to location, demographics, behavior, and more. This applies when there’s demand for the services offered.
• Identify yourself from your competitors with a unique selling proposition. The customers need to know why they have to buy your service and not your competitors.
• Branding as a marketing strategy is an image for the business in the area of specialty. It is how the audience perceives the services offered by the service provider.
• Consider effective marketing channels for the SEO business to reach out to the target audience. These include blogs, social media, a business website, referrals, networking and more.
• Mobilize funds for marketing activities to finance operations for the business. You need to budget for social media marketing services, web designing, SEO services, advertising and promotions.

FAQs – How to Start an SEO Consulting Business

• How much capital do I need to start a professional SEO business?

Depending on the type of business structure, starting an SEO business requires investment capital ranging from $3500 to $35000.

• How much money does an SEO specialist earn per month?

The average salary for an SEO specialist in the United States is $4500 per month which makes $55000 as an annual salary.

• How long does it take to make profits by offering SEO services as a new business in the industry?

This depends on the level of commitment and how much you apply yourself to the best practices to win business opportunities from clients. When everything is done correctly it takes 1-2 years to start making profits.