He does a nice job of laying out the benefits of blogging for your small business. I’d add one more. Basically a good blog can lead to great connections within your industry. Not necessarily sales (though it has for me), but connections with other companies which can reap rewards not envisioned when you started your blog. Just by being “out there” you’re giving yourself a big boost over the competition because if some other business is looking to work with a business like yours then you’ll be much easier to find then the competition. In addition, they’ll be an easy and effective way for the interested parties to find out more about you. Making that process easier lowers the barriers to them approaching you with ideas and that can only be a good thing.
Update: This doesn’t really belong in this post and I’ve linked to it before, but I really love what Gavin does with the MicroISV digest. Great stuff Gavin!