I would definitely start locally, that's the easiest way to get customers for most business's especially web design, just get some business cards printed out and hand them out around local business's . 200 pounds sounds pretty reasonable yes but then i would charge 50 pounds for any extra pages after that.

Hi there, i like your website, but it does take a while to load and it does seem quite narrow, I would definately suggest locally is best, the hardest thing is getting traffic to your site in the first place. It is best to get a high keyword density to your homepage or to advertise with your keywords as much as possible
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Essex Web Design

Find some bad local sites and offer a free redesign to one or two who are well established and will give recommendations to all the other business people they know. Go above and beyond when dealing with these people and be frank about asking them to recommend you.
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Wholesale Home Accessories

Wholesale Mirrors

I think it is better to advertise your business locally first to test if you advertising strategy is effective or not, then after you prove it that your advertisement was effective, now it is your time to do it globally.
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chiropractic marketing

Karl,

I don't see any downside to going global right away. I've done lots of business with people from other countries and the web makes it feel local.
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-Steve
Database Software for Small Business