Strategies and problems facing the small private liberal arts colleges as a group are described. Many of these schools have weathered the financial emergencies of recent years by cutting expenditures to the point where the quality of education is threatened. New measures have been called for to reduce the tuition gap between private and public institutions and to use public resources to assist threatened private colleges. There are, however, a limited number of instances where the small liberal arts college has remained financially and academically healthy. This condition is usually accompanied by a self-analysis program identifying a distinctive purpose for the college to serve. Information on the state of the college's operations and potential new markets is obtained with the cooperation of faculty and staff. Firm plans and decisions can then be made about the future directions the college will take. (Author/LBH)