I run a small business online. I am interested in using Bitcoin to accept monies from my customers but to be honest the whole thing has me a bit confused. I am in the UK how would I be able to exchange my Bitcoins for £ sterling and then subsequently spend it?
Trade them for USD, GBP or EUR on a trading site such as https://mtgox.com and transfer it to your bank account.
Or you can spend them directly at any other business that accepts bitcoins as payment.
There might also be a number of goods and services you would use where bitcoins are accepted for payment.