Intended for those groups contemplating the establishment of any type of literacy services within a community, this resource is designed to help in the analysis of both the need for literacy services within the community and the currently available resources for meeting that need. Five steps are recommended to identify clearly both the needs and present resources in a given community. They are: (1) analyze census data, (2) survey literacy providers, (3) survey potential clients/students, (4) survey other service providers, and (5) survey business and industry. Suggestions are made for implementing each step, and instruments are provided as necessary. Appendixes include material on adult illiteracy estimates for the states and sample letters to accompany some of the questionnaires that are provided in the text of the guide. (YLB)