Using these images from left to right I will give you as simple an explanation of Serarch Engine Optimization as I can
The first thing to do is to decide what keyword will best suit your buisness and that the majority of people trying to find you will use.
The site shown in the first picture is a driving school in tamworth serving only tamworth and the surrounding areas in staffordshire. Now you might think that the best keywords for your site would be driving school or driving lessons however this is not true.
As you will not be covering the whole of the uk driving school or driving lessons would be too broad a term and you would be competing with millions of other sites instead of a few hundred or thousand using keywords such as Driving Lessons Tamworth or Driving School Tamworth depending on how many other driving schools there are in your area.
Also local searches tend to show up Places In Or Near a given location so there is a good chance that if you typed in to a google search driving lessons polesworth (just outside tamworth) then your site would still show in the listings.
Keyword placement is however just one factor of Search Engine Optimisation
Getting links in to your site from other sites is the second most important part of Search Engine Optimisation and will help your site rank well not only in google but other search engines as well.
Imagine a town in the middle of nowhere with no roads leading to it this is how you could describe a site with no links.
The more links or (roads) into the website (town) the more popular it becomes.
If you look at pictures 2, 3, 4 and 5 you will see that after carefull use of keyword placement and the building of links to and from this site it ranks well in google search yahoo search and bing search for its chosen keywords.
This site currently gets 10-15 hits per day and 60 - 100 page views, good content helps keep visitors on your site.
If you have any questions regarding SEO dont hesitate to ask