Sian and all,
I have spent a lot of time working on local search optimization. I too, am a big believer in how powerful it can be for local businesses of any size.
I could write a long post on all of the various techniques and recommendations I would make for you, but I found a few good posts that do it better. Really quickly I think the most important thing for local search optimization is keyword selection. That is, determining what keyword phrases with the local identifiers you want to target and optimize your website to get rankings on.Once you have that you can apply those to nearly every strategy and tip that the follow posts provide.
This is a good comprehensive post - SEO Tips for Local Businesses
This one has some interesting step by step tips - Tips for Local Search Engine Optimization for Your Site - Written by a Superpages.com employee
This one makes great points about keyword selection
- Choosing Keywords for Local SEO
This one is a good guide as well, I particularly like the advice in the second paragraph - Local SEO Tips for Small Businesses
I hope that you guys find these helpful. Being a huge SEO fanatic myself, I love the opportunity that exists with localized online marketing. In my opinion it is one of the largest untapped opportunities for small businesses.
Cheers!