Using semi‐analytic models of galaxy formation, we investigate galaxy properties such as the Tully–Fisher relation, the B‐ and K‐band LFs, cold gas contents, sizes, metallicities and colours, and compare our results with observations of local galaxies. We investigate several different recipes for star formation and supernova feedback, including choices that are similar to the treatment by Kauffmann, White & Guiderdoni and Cole et al., as well as some new recipes. We obtain good agreement with all of the key local observations mentioned above. In particular, in our best models, we simultaneously produce good agreement with both the observed B‐ and K‐band LFs and the I‐band Tully–Fisher relation. Improved cooling and supernova feedback modelling, inclusion of dust extinction and an improved Press–Schechter model all contribute to this success. We present results for several variants of the CDM family of cosmologies, and find that models with values of Ω0≃0.3–0.5 give the best agreement with observations.