It does not matter if you are small business owner or a big one: You need to have a blog. And that too for a good reason. It is estimated that by 2013, an additional 20% US residents will be comminucating their ideas and content by blogging.
But apart from just following the trend, a blog keeps your prospective (and current) customers updated about your company. It also tells them that you are committed to the cause.
But a lot of people use their blogs in the wrong way. Blogs work if people turn up at your website to read them; otherwise they are worthless.
Over 70% of the business owners use blogs the wrong way; They go overboard with their sales pitch and product info in their blogs, which makes their customers run away. Remember: a blog should not be used as a promotional tool. Use it to educated your customers and not to sell to them.
Once you have a successful blog up and running, add some personality to it. Do not be afraid of using informal language at times. Put up a picture of yourself to make yourself known to your audience.
A blog can help you massively in getting good customers & traffic, but only if you approach the art of blogging in the right way.
WordPress is a really good blogging system. Install it on your website and start blogging. You will see great benefits from it down the road.