Creating a Great Strategic Plan for Future Expansion

In past blogs, we’ve emphasized the importance of completing a strategic plan before diving into the design phase of a church expansion project. But what makes a good strategic plan?

We believe that, while every plan is a bit different, there are four elements that factor in every good strategy—whether in church leadership, real estate development or business.

Below, we apply business principles to church strategic planning. Some of the terms seem odd or out of place in a church setting, but they work—just with different connotations and manifestations in the church setting, than in the business world.

1. Vision

What’s the point of planning if you don’t have any idea where you, collectively, are heading? Church leaders must first have vision and then get on the same page about it before moving forward. This vision should include not just the building project, but also the reasons why and how it will fit in with the overall purpose, direction and heart of the church.

In other words, think about the bigger story your church is part of and how your expansion project will contribute to that story.

2. Financial Feasibility Analysis

Avoid designing your project before you know the total funds it will require, including hidden costs, and have a doable plan for how and when you’ll finance it.

If you can’t afford it now, don’t do it now. Consider other, more affordable options. If none of them work, figure out exactly how much money you need to complete your vision, and then plan a fundraising and/or financing program and timeline around that. Make your plan achievable. Be realistic about your capacity to raise the necessary funds and your church’s ability to carry long-term debt. Also consider how this debt will get paid off during the church’s next grow phase.

3. Competition Awareness

This is a loaded question for many pastors, but a valuable one to ask: What are other similar churches doing? When a church seeks to expand, it’s not about competing with other churches, but often it is about understanding established principles about what works for expanding churches in this day and age. And it’s about learning from others’ mistakes.

Also worth considering is whether your church fits into a specific niche in your community that’s different than other area churches, whether the niche is part of your long-term vision and how your expansion project will impact that niche.

4. Understanding Your Customer Base

This is another business term that seems out of place at first, and indeed, perhaps even troubling in the church context. Nonetheless, every church must consider two groups of people when creating a strategic plan: its congregation and the people it is trying to serve. Sometimes, those are the same but often, large churches serve populations who never set foot in one of their worship services.

What are the needs, desires and perspectives of these two groups? Are they represented in your vision and your plan? Will the expansion project or its financing impact programming in positive or negative ways?

We’ve helped lots of churches develop successful strategic plans. For more information or advice on planning for a church expansion, contact Scott McLean at scott@developco.com.