"The Prentice Hall Encyclopedia of Model Business Plans" (Prentice Hall Press, 345 pages, $24.95) combines a thorough and well-written tome on business plans with an interactive computer CD-ROM that helps guide budding entrepreneurs through the business plan preparation process. Included in this unique three-in-one business plan kit are an overview of the business plan process, more than 60 model business plans and a guide to other sources of information.

One of the most attractive aspects of this book is the way the authors have organized the material. After devoting the first chapter to basic business plans, they target the next nine chapters to plans for specific types of business ventures. They offer advice and model business plans for retailers, small service firms, small manufacturers, home-based enterprises, research organizations, educational institutions, franchise coordination, nonprofit ventures and import-export firms.

"Model Business Plans" does an excellent job of starting with the basics and presenting information in an easy-to-follow format that should appeal to novices and experienced business people alike. Typical of that approach is the following excerpt from the book's preface, which addresses the issue of planning a business venture even before you start writing your business plan:

Before you can begin to prepare a business plan, you have to go through the steps of planning your enterprise, whatever it may be, so you have a concise idea of what you need to propose to outsiders. It may come to you in a flash, or you may have been toying for a long time with the prospect of going into business for yourself. But now you have reached a decision.

Every business venture, no mater how large or small, needs a business plan.

You are convinced that you have an idea that can really take root. You are excited about the market potential and the prospective customers out there who would like your products or services. If you, as the potential founder of this new business, have the experience and knowledge to pursue the venture, you must then determine whether:

* Enough capital is available, or can be acquired, to launch the enterprise and maintain momentum;

* A suitable location is available;

* The population can support this kind of business;

* The local economy is healthy enough to assure potential income;

* Suitable employees and, if necessary, qualified specialists can be easily recruited;

* The business is unlikely to be overly sensitive to economic fluctuation, changing consumer tastes or political legislation;

* There are no legal entanglements or legal risks that could result in setbacks or conflicts of interest.

Over and beyond these requirements, you need patience, judging the time needed for the business to take hold and reach a break-even point. This introductory period is the most precarious stage and the one in which most failures occur. Even though you may be steadily adding employees, during the initial stage you must hold a tight rein on your business, controlling all the major management and operational functions. You may be working day and night and on weekends to get the business moving, yet you should not get discouraged if you have little to show for your time and effort.

This starting period can be expected to continue for a year or two, longer in the case of a more complicated enterprise. So you have to ask yourself, long before you actually make the decision to become an entrepreneur:

1. Do I have the self-confidence to undertake the kind of venture I have in mind? Can I get on the phone and make calls to prospective customers, or trudge the streets to conduct personal interviews, without fearing that I can't sell myself or my business idea?

2. Is the timing right for the business I have in mind, both seasonally and from the viewpoint of consumer buying trends? Have I assessed the needs correctly, or would it be better for me to undertake more research or consult with experts in the field of my choice?

Business owners need to look at many variables and their potential impact.

3. Are my personal attributes right for the task? Am I self-motivated, a hard worker, comfortable managing other people whom I will need for assistance, and willing to sacrifice my private interests and leisure time in order to devote a full effort to the job?

4. Do I have the competitive spirit required to run a business in the face of stiff, persistent rivalry on the part of other owners and managers who will be aiming at the same clients and/or customers as mine? Do I have both the drive and the imagination to compete in the marketplace?

5. Am I willing to make the necessary financial sacrifices to focus my monetary efforts on this new business, even if it means investing my own money? Or do I have the fortitude and poise to approach banks or other prospective lenders to obtain the necessary financing?

6. Can I survive a situation in which I have no regular, dependable paycheck, and sometimes I may even have to hold off some creditors until my business reaches a point where I can pay myself a salary or expenses? Do I know, realistically, how I can cut back on personal financial obligations in order to avoid unmanageable debt?

7. Have I prepared a "road map" to guide me in the direction I want the business to take, including the potential areas of growth and development?

8. Do I know how to take advantage of the resources, public and private, that are available to help me chart the best course for my endeavor?

The authors of this book are asking quite a bit of potential business owners in those eight questions, buy they are important questions that every budding entrepreneur should ask himself or herself before taking the plunge. As they do throughout the book, Cross and Richey in the preface also offer a variety of resources that can help you answer those questions and start charting your course toward business ownership.

Among the resources they suggest are your local Chamber of Commerce, the Service Corps of Retired Executives (SCORE), local libraries, fraternal organizations such as Kiwanis and the Knights of Columbus, continuing education courses offered by high schools and colleges, and your competitors-to-be.

Referring to the last, they write, "This may sound like trying to bell the cat, but where else could you find a better resource for getting an inside look at the business potential in the field of your choice? Naturally, you have to use tact and a bit of undercover sleuthing to disguise your real purpose and avoid having your intended source clam up. Try using a friend or relative who may be a customer of your future competitor as an 'undercover agent' to find out whether business is really booming, holding its own, or slipping in the wrong direction."

One prospect that too many new business owners fail to weight adequately is the potential for failure. Human nature being what is it, that's not surprising. To their credit, however, Cross and Richey do not shy away from this subject in their useful book. In fact, they take a straightforward look at the most common causes of business failure.

One good strategy is to investigate soon-to-be competitors.

Among the reasons they identify are the inability of owners to make clear decisions, failure to anticipate market trends, insufficient capital, overextensions of credit to customers, poor communications and relations with suppliers, sloppy inventory control, lack of basic training, reluctance to seek professional counsel and help, insufficient knowledge of merchandise or equipment, inadequate record-keeping, and disregard of competition.

Overall, however, this is not a book about business failure. Quite the contrary, it is a very good book--complemented by an interactive computer program--about a very important topic for anyone interested in starting a business. The business plan is the foundation on which any hope of future business success surely rests. "The Prentice Hall Encyclopedia of Model Business Plans" offers you the tools to make sure you build that foundation rock-solid.