For the small business with an even smaller budget there are a few free and very low cost options that will at least get you a web presence. Remember that you get what you pay for.
In the free category I would recommend Tumblr which offers a very nice free blog. They have some nice looking design templates to choose from and you can attach your account to your Facebook and Twitter account which is nice.
In the low cost paid category I would recommend Page.ly which for $14.98 per month offers a quick 2 minute setup, your choice of some nice looking templates and a free domain name. Also because Page.ly is powered by WordPress you have the ability to install any WordPress plugin so you have an almost unlimited ability to customize and add functionality.
Dr. Smith
My average client is not spending any more than you and is getting a much better product, I think the main difference is that my clients are paying all at once and you are paying over time. Let’s say my average client pays around $3000 for a custom designed website with WordPress, $88 per year for web hosting and gets a major redesign every 5 years. Over the course of the 5 year lifespan of that website they have paid $3440, over the course of the same 5 years you pay $3600.