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Backlinks is an aspect of SEO that search engines consider extremley important. The more sites that link to yours will help your site move up the rankings, making the difference between a good site and an exceptional one.
Getting these backlinks is the difficult part. The best way to get people linking to your site is to create an interesting, frequently updated, useful site, and post it on forums, blogs and press releases.
If you cannot afford to spend time and money doing this the next best method is to request a link on free business directories. It is important to bear in mind that these directories may not accept your site and if they do it can take several months for you to be added.
The best links you can get are from sites that have a high page rank (although low page ranks will certainly not hurt). It also helps if the site linking to yours has a similar subject matter, in fact sites that have no relevance to yours may have a negative impact on your SEO.
A guide to SEO: Best SEO site | Title Tag | Content | Domain name | URL | Headings/bold/italics | Images and Alt tags | META description
META keywords | Website / page age | W3C validation | Back links