I've always been a little bit wary of any company offering fixed-price websites based on a template. Apologies if this sounds preachy, but have you worked things through right from first principles? Ask yourself why you need a website, and what - exactly - you're going to use it for. I think it really is better to spend a bit more cash intially to be sure you get something which is going to work for you.

There's a bit of information about working with agencies here (ok, so it talks about "gowing your website", but I think the advice is still valid).

And - I can't stress this enough - absolutely make sure that whoever designs the site knows their stuff when it comes to search engine optimisation. I think the best way is through a recommendation - are there any business organisations in your area (here in the UK we have our Chambers of Commerce etc) where someone might be able to make a recommendation?

Good luck!