Ask Harry Joiner. I think he does this and it seems to work for him.
Make it a hybrid. Use blogging software (wordpress or typepad or moveable type) with a static front page. Then you have control over content, good SEO, and it costs the same.
Design the site, and don't necessarily call it a blog. Think of the blog as your CMS.
If you can incorporate a blog on your website it can be really beneficial. My company launched a website for one of our branches that incorporated a blog from its staff members. It was successful before the company gave up the website. It is still active, feel free to check it out at http://procomottawa.com/.
Just a thought!