Here at SourceTOAD, we cater to many different size businesses. Big and small, local and national. But our bread and butter (and my favorite type of client) is the small business client. We love watching a budding business blossom and grow, and I like to think that some of our SEO advice has helped some of them. The most helpful piece of advice, it seems, has been reminding them to "think small."
Many times, when a business gets a shiny new website, they want the world to see it. They want everyone from Portland, Maine to Portland, Oregon to be aware of their existence, it seems, and want to do their SEO in this manner. To this we say, "Stop!" If your business is some sort of service or product that is super-localized, please, embrace that fact.When compiling keywords and phrases for your site, think small and local. Include the name of the city, county, or municipality that you are looking to target. Yes, this is going to keep you from being number one on Google for a national search for widget-fixers. I say, good! No wasting your time with phone calls and emails from "potential clients" in Timbuktu that you cannot help, anyhow. Instead, compete with the handful of local widget-fixers.
You can save money, too, by including your area in keywords and phrases that you might choose for a service like Google's pay-per-click. Since the price varies based on the popularity and demand for certain keywords and phrases, you can get your clicks for next to nothing if you include your location as part of the keywords or phrases you choose.
As an owner of a small business, remember that you only have to outperform your local competitors to be the best. Think small, think local, and be the big fish in the small pond.