As a local company with local clients you may think that internet marketing is not relevant to you but you are mistaken. You could be dismissing a valuable source of work if you ignore the latest internet trends.
The best place to start is of course with a website but this does not necessarily mean you need hire a web designer. There are many ways in which you can get great exposure on other sites and all for free.
Google provide a one page website for every business and all you have to do is claim it. See my post on Claiming your Google places page for more details on this. Facebook, Twitter, LinkedIn, YouTube all offer great exposure and all it takes is some time.
There are also many free directory listings from Yell, Scoot, City-Visitor to name but a few. An afternoon filling in online forms can see great results as many of this listings also get first page listings in Google.
In short, get your name out there on as many sites as you can and see the results.