Express hit it on the head. Networking will get you more positive leads that all the advertising u can do.
One exception might be to get into your local BlueBook www.thebluebook.com.
It's a hard bound phone book published annually and u can get in it for free. To run an ad in it costs some but you can at least get your company name published there.
The Chamber of Commerce was my first choice for networking and it got me off to a very good start. Problem was that I wasn't ready for it to start that quick. Wound up with 7 employees in a year and I lost control - and then money, tools, etc.. Be wary of starting up too quickly, it can be costly.