Start with some good local keyword data
Before you start, make sure you are setup for success by doing some preliminary keyword research in your niche.
This tool can help you
http://www.localmarketingsource.com/local-keyword-research-tool/
Check your analytics and see what keywords are already bringing traffic. There may be opportunities to increase your visibility on something that's already preforming.
Make sure that you always focus on converting keywords that provide the searcher with the proper intent.
Anothers keyword tools:
Wordtracker
SEO Book Keyword Tool
Ubersuggest
Keyword Eye
SEMrush
Other option is Google Trends for regional interest
Another good tips is use schema markup for local businesses injected into contact pages to give clear indications to search engines of your shop's physical location