In fact it is likely that if you live in an area with many small towns located around your  place of business you want to try to get customers from the surrounding towns as well.

Many small business make the mistake of optimizing focused purely on the town they are in, for instance they may have the title of their site be:

Smalltown Restaurants

But if you speak to the business owner for any amount of time you will find that they are also interested in growing their business by attracting customers from surrounding communities.

If that is the case there are multiple options, even if you have just one location. A couple quick tips:

Build multiple pages with unique content that is focused on that specific town, optimize the title keywords appropriately. This could be as simple as announcing a local community event you will be sponsoring or attending.

Another option for less competitive areas is to have multiple city/niche combinations in the site title, expanding on the example above:

Smalltown1 Restaurants, Smalltown2 BBQ | MyDinerRestaurant1.com

Although a very minor change it can make  a difference for your small business when attracting surrounding customers. We have had customers have immediate results from such minor changes such as this.