How Do I Break Into My Local Market?

I am sure I am not alone on this one. I live in a fairly small town (approx 10,000 people). It is the kind of place where everybody knows everybody else's business, like it or not. It is a town dominated by one or two real estate agents that not only get a lot of referral business, but also get most of other business because they have physical offices in town.

My question is as a new agent without a physical office location, how do I break into this market? I know I can offer clients more than these other agents. I have a great grasp of current technology and these other agents are slightly out of touch. I definitely have more individual attention to devote to my clients. I just need a way to reach them! Any ideas?