Yes, I agree with that BLUE text above, that is suitable and should be adopted by any business to be clear crystal in projects...Advertise locally, to local businesses - and do the first few sites for free. You can't pay for the advertising that a few happy customers can buy. Then you can list their sites on your site as work you've done.
Walking around is another way - call on local merchants who have no web presence. Make sure you know what the hosting and domain name will cost them. Have a few available domain names for them.
Check on the web for how you should word your contracts - if you don't have a good contract you'll be doing a lot of free work and have a lot of dissatisfied clients, or lose clients. Even for your free work - this is what you want, this is what I'll give you and there won't be any charge. Any additional work will be charged for at X rate. That kind of thing. (There are some sites that sell boilerplate you can use. They're written by people who learned the hard way.)
http://www.web-optimize.com
try hitting up blogger