Because of the competition in the internet space around what you do, I'm going to recommend that you NOT pursue SEO work at this time. Instead, I think you would see better results to take some of that money and simply buy Google results. Google lets you decide what your budget is for the month in advance and you get very good tracking about what is working and what is not.
The other recommend that I have for you is to put together some very targeted in-house mailings using a simple brochure and some clear follow up. The main concern that I have with Search Marketing your business is that your clients might not be smart enough to know what to call your product. They will understand it once you present it to them, but they might not go look for it. This is something that you say on your own solutions page.
Here's my basic proposal: I'll fix the writing on your site so that potential clients can more easily understand what you are selling. The writing will be good on page SEO work, but I'll be clear with you that it just won't get you traffic. What the writing will do is lead to a more direct request for contact and should help you pre-sell. Your pages need a much stronger closing statement asking for the business. I'll also help you through the Google process. We'll focus on getting you customers close to home. The writing work will include creating the brochure using Illustrator but you must supply graphics. Here is a link to an example: http://neighborwave.com/simple-advertising-print
Website (plus brochure) Copy Writing $400
Internet Account Management $100 (this is half price)
Brochure Layout No Charge
Total $500 (cheap!)
I think you have a great business idea and a local provider of services like you can do some great sales. It's exciting to see someone working to get out of the break-fix computer biz. The chief attribute of your business is that it is locally owned and controlled. Big businesses operate at a distance and aren't willing to be as responsible as you. Your prospects should hear that in your marketing materials and again in your sales work: "Local Operations Equals Accountability." I know it's counter intuitive, but yours is a product that is best sold person to person.
I've got some time Friday Morning.