Robby, what you need to do in my opinion is make a choice about what you want to do. Do you want to be a freelancer? or do you want to be a small business offering web design? There are strong merits for both.
If you want to be a freelancer, forget local businesses, approach agencies within 20 miles of you and try to pitch yourself and your skills to them for outsourcing work - many agencies now need good people on their books to outsource work too.
If you want local businesses, then you are better off setting your stall out as a small agency, so yes, that means tweaking your site from the traditional About page to a site that conveys that you are the best choice for a small business and how you can help them to improve.
You don't have to sell yourself differently per-se, as in, you don't have to pretend to be some 5 man design studio, but small businesses respond well to an established business, not just a guy in a bedroom, it is a fact of life. So if that is where you want to go with things, you have to get your professionalism on and really act like an agency.
I find private clients very hard work, so I pitch 90% of my work at agencies, and I have been lucky to have worked on some really high profile stuff, so I generally get about 6/7 calls a week from agencies asking about my services, most of which I have to turn away as I am just too busy at the moment - it is a nice problem to have.
But the key is to find WHO you want to be and then market yourself accordingly
Good luck