Marketing a Local Business

I've had way too many small business owners say "but Andreas, I don't need the Internet because my market is local." To me that's ludicrous. That's even a better reason to market online.
More and more people are going to the Internet to find the resources they require instead of picking up the yellow pages. This is the perfect opportunity to market a local business online.
Imagine the marketing challenges large global sites have? If a customer types in "widgets" in a Search Engine, then they have to compete with the whole world to be near the top of the search results.
Now, a local company, on the other hand, has a much easier task as there is less competition. Searchers are very educated these days, and most people looking for widgets in their area would now search for "Springfield widgets" or "Widgets in Springfield".
Let me assure you that it's MUCH easier to come out near the top of the search results for "Springfield widgets" than it is for just the generic "widgets".