Ted Demopoulos makes some good points in Blogging for Business regarding the value of blogs to local businesses.

Search engines love blogs, and can quickly help catapult a local website in the rankings, sending them more potential customers. They can also help turn “dull” into “dynamic” (or at least less dull!) and encourage repeat visitors.

Many local businesses are relationship based, even more so than Internet and 1-800 businesses, and the personal nature of blogs can help increase the feeling of knowing Joe Blow @ Seacoast Tub and Tile, even if we’ve never met him. This increases the likelihood that people will stop by and make a purchase.

Some local business people are likely to wonder what they could write about. In approaching the content of their blog, they should remember that they are the “experts” in their business area. If they mix this expertise with a passion for their business, they can write about things that will be of interest to the consumer such as new products, specials, examples of good customer service and ways in which the local business tries to make itself special.