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James
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SEO is one of the few things I would encourage you to do yourself. It will certainly take a few months to learn the ins and outs, but it is a valuable skill moving forward.

For a new business the costs of outsourcing are usually prohibitive. $500/month won’t get you far with the agencies listed above.

Plus one of the biggest factors in SEO is quality content.

Only you know your market and business inside out, so only you can write the perfect content for it.

There are plenty of great resources out there for learning SEO. SEOmoz is a big player in the industry so their beginner’s guide is probably a good place to start: http://www.seomoz.org/beginners-guide-to-seo