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As I've mentioned before I've been out of the web biz for a while. I'm curious as to what is out there for small business websites, the Mom and Pop kind of sites, the local bakery on the corner or that sort of thing. I know there are/were a bunch of automated site builders, but from my experience on the ground the majority of the Mom and Pop's will never use those, never find them.
What if anything do you see happening at that level?
I have in the past lumped myself with some extremely unprofessional and tiresome 'one man bands'. If you come across a small business owner that has no appreciation of IT and the skill/time involved in providing quality, DO NOT WORK WITH THEM.
If you are going to go after small businesses, I would look for accountants and solicitors as they can recommend you a lot of work and tend to have a professional approach.