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Many small businesses, particularly service providers, have difficulty working out the cost of the product, and marking up a desired profit margin isn't possible. In any case, your pricing strategy should also take into account your competitors' prices, your customers' purses, and what you think the market will stand.

Just open a newspaper and count the number of times you read the word 'sale'. The truth is that people do put a high value on price but they also put a high value on quality, and when you lower your price you cheapen the perception of your quality.

The UK Small Business Marketing Bible contains hundreds more tips and tactics for boosting your sales using proven marketing strategies that work no matter what product or service you sell.

It's a dilemma: you want your clients to pay you as quickly as possible, but you don't want to pester them so much they take their custom elsewhere. It's often a problem if your business is still young, because you need to get the cash flowing as soon as possible, and getting a bank loan may not be an option.

If your customers are large businesses, though, it can be easier to take action. The EU's Late Payment Directive allows you to charge interest and a compensation fee for chasing up a late payment.

First things first, though. It's wise to talk to your customers before applying the Directive to your unpaid bills, and explain why your business will run more smoothly if your invoices are settled in reasonable time. And if you decide to go ahead and charge for late payments, it's a good idea to let your customers know beforehand.

Here's how the Directive works for UK businesses:

• If the contract says nothing about payment terms, you can start charging interest on commercial debts unpaid after 30 days. The rate is calculated as 8 percentage points above the current Bank of England base rate - in the UK this is a total of 12.5% at the moment.
• As well as interest, you can charge a compensation fee, designed to cover the cost of chasing up the debt. For debts up to £1,000 the fee is £40, for debts up to £10,000 the fee is £70, and for debts above £10,000 it's £100.

If you want to find out more about late payments and how to handle them, you can visit the Better Payment Practice Group at http://www.payontime.co.uk to find out more.

For hundreds more scenarios, frequently asked questions and tips on complying with and understanding the laws that apply to small businesses, check out our new service, the Red Tape BUSTER

Ever wanted to switch some money between your bank accounts, and spent hours waiting on the telephone because "all our operators are busy"? Wanted to order a new paying-in book and popped into the local branch of your bank, only to discover they're only open for two hours on a Wednesday?

New research shows in five years' time, complaints like this could be a thing of the past. A survey by Xbridge predicts that by 2009, small businesses banking online could outnumber those using other methods - with only one in three businesses still heading down to their local high street bank.

If you decide you'd like to join them, there are a few things you'll want to consider.

All the major high street banks, such as Barclays, HSBC, Lloyds TSB and NatWest, as well as many of the smaller ones, now offer online business banking - check out the British Bankers' Association Business Account Finder (http://www.moneyfactsonline.co.uk/mfBAF/root.asp).

Here are a few basic questions you'll need to ask:

• What interest rates are on offer, and what set-up costs or ongoing charges will there be?
• Can you transfer money between your accounts, and pay any bills or suppliers that you need to online?
• Can you set up and alter direct debits or standing orders?
• Can you accept international payments?
• Can you order cheque books/paying-in books?
• Can you download financial data to spreadsheet packages such as Excel, Sage Instant Accounting, or Microsoft Money, to make keeping track of your finances easier?
• Is there a 24-hour helpdesk if you get stuck?
• Do you meet the minimum hardware/software requirements specified? (Is your web browser up-to-date enough? Do you need a high-speed Internet connection?)

Once you've signed up, queues should be a thing of the past.

a. to structure a company so that its departments stay separate
b. to protect yourself from loss
c. to create an environmentally-friendly workplace
d. to cut yourself off

Answer at the end of Bulletin.

From 1 October, businesses will have to follow a three-step procedure when handling disputes with employees. In order to ensure businesses cannot dismiss somebody for no good reason when a problem arises, they will have to write the employee a letter, have a meeting to discuss the issue, and arrange an appeal meeting if required. These are the minimum requirements, but in fairness they're designed to provide business owners with more protection, as well as employees.

The DTI has published a background note explaining the new rules at http://www.dti.gov.uk/er/individual/train_annex.htm, and the Advisory, Conciliation and Arbitration Service (ACAS) offers more information at http://www.acas.org.uk/rights/discipline.html.

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