Here is a quick run down of the basic process involved in ranking locally. This can be more complicated and require a more expansive plan, depending on the niche and competition within the sector your business resides. However, the following process will give your business a good 'base'
1 - Google My Business
First thing first, register your business with Google My Business.
Just click on the blue button - "Get on Google"
Then on the Map, search for your business, even if you know that you have not registered with Google yet:
Then, when your business is not located, click on "Let me enter the full business details":

On the next screen you can enter your business details, and then click to confirm that you are an authorised representative of the business.
You will then be prompted to verify your business. This is to confirm that the business is located at the address you have given. This can be confirmed via postcard or telephone.
Next, enter your business details, upload photographs and select a category for your business.
Once your business has been verified, you should be able to manage your Google + page, your map listing and your business page from the one login:

You should now have at least some kind of 'local presence' on Google
If you find that you already have a business page - 'claim' the page
Creating a Facebook page, and a Twitter page is the next stage. On Twitter, be sure to follow other local businesses and people.
Generate customer reviews by, where possible, leaving a tablet in your reception area and putting a link in your business email signature to your Google and Facebook pages. Try and get at least 5 reviews on each page.
2. On Page Optimisation
According to Moz, on-page (on-website) signals are one of the biggest factors in local SEO.
It's therefore important to optimse the website's meta title(s), header - H1s, and image 'alt text'.
If we use the webpage of this local pump and engineering supplier in Deeside as an example, the meta title includes keywords about their products, but it should also include their location.
The H1 also contains keywords but not the location. This is perfectly fine for a company that distributes and sells products nationwide, however, if a business wants to optimise locally, then their should either be a separate 'local landing page' which is optimised with 'mentions' of the location, address and telephone number, or the homepage should be optimised. Which ever seems most user-friendly and 'natural'.
Where possible, create a contact page that includes the Google Maps Widget & write basic driving instructions.
Reviews are also a great way to increase click through rate - consider adding these to your landing page - http://microformats.org/wiki/hreview-examples
3. Local Directory Listings
For the time being at least, high quality local directories appear to pass relevant SEO equity and local signals to websites. Consider adding your business and your web address to:
www.foursquare.com
www.opendi.co.uk
www.yelp.co.uk
www.yell.com
www.yalwa.co.uk
www.freeindex.co.uk
www.hotfrog.co.uk
www.city-listings.co.uk
4. Everything Else
On your website, consider using hCard markup
Add at least 400 words of unique text to your landing page
From your website's landing page, link out to local places like universities, council buildings and nearby businesses
Add geotagged pictures of your business to panoramio and Flickr.
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