You can use blogs in various ways... to announce, to inform, to converse (with customers/ potential customers), to entertain, or pass on news/information from other sources.
The subject matter can also variety from very specific to your business to general information on a wide variety of topics.
How you use your blog depends on you and your target audience... and your purpose (to build a relationship, to get new customers, etc).
An important benefit of a blog is it`s affect on search results... and bringing traffic to your site. Blogs can be a way to "notify" the world / and search engines that you have something to say.
Proactive rather than reactive
In general terms, when you post a blog entry... your blog sends a message to blog search engine that a new item has been added. This is different than changing text on your website, where you have to wait to search bots to read your site for new content (reactive)... a blog can actually "push" your new post out to the search engine (proactive).
So be proactive and blog! 

~Roland
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