A Deep Dive into Church Business Plans for Pastors (How-To & Free Template)
When you hear the words “business plan”, you might picture suits, boardrooms and spreadsheets. But church business plans? For some, those three words just don’t mix.
However, a church business plan is simply a tool.
No one bats an eye at the use of free church management software, so why should a church business plan raise any eyebrows? (bonus: making one is completely free, and I’ve included a template here also to save you time — so read on).
While a church is not like a traditional business, it still needs a roadmap that tells it where to go, and how to get there.
After all, God has a plan, and so should your church.
joshua Gordon
To help you get started, I'll cover:
- What Is A Church Business Plan?
- Why Do You Need A Church Business Plan?
- What Should Be Included In Your Business Plan?
- How To Create A Business Plan For Your Church
- Church Business Plan Template & Sample
What Is A Church Business Plan?
A church business plan is a tool that helps turn your church’s big dreams into reality. It provides guidance, structure and reminds everyone where they’re going. It helps you:
- Keep your vision clear (Proverbs 29:18) and at the forefront
- Keep your finances in check
- Keep your team on the same page
Kinda reminds you of biblical stewardship, doesn’t it? That’s because it demonstrates how your church and leadership are stewarding the resources God has entrusted to you, to work towards our ultimate mission, the Great Commission.
A business plan is distinct from your vision and mission, but it does help drive your vision and mission forward. Its purpose is to provide clarity and guidance on issues like:
- Effective communication of financial needs to the congregation
- Management of the roles of staff and volunteers to reduce burnout and help people stay in roles they love (and are good at)
- Execution of the church’s long-term vision with objectives that help align efforts of people and ministries
- Expansion of local outreach strategies for churches wrestling with how to connect with their communities
Side note: If you’re worried that having a business plan is taking God out of church or ministry — remember these are tools to help you be more effective in your work for the Kingdom. And since Jesus is living in you, as Galatians 2:20 reminds us, you have the benefit of inviting Him into your planning and into your work. Diligent planning is biblical, after all: "Commit to the Lord whatever you do, and he will establish your plans" (Proverbs 16:3).
Why Is A Church Business Plan Important?
First, a church business plan puts edges and definition on your dreams and vision for your church. It's significant in moving your vision from a nebulous 'maybe' to a clear, structured plan.
Many seasoned leaders and experts will argue that you should run your church like a business because it’s practical, it gets results, and it helps us practice good church stewardship.
A church business plan will help you become more effective in how you:
- Execute your god-given church mission and vision
- Manage your god-given resources (including the most valuable resource: your people)
- Manage the programs and outreach initiatives that help you serve more people
A Church Business Plan Includes:
A church business plan includes several key elements to guide its growth and operations. It should include the following key elements:
- Executive summary (an overview or synopsis of the entire plan)
- Mission, values, vision of your church
- Short-term and long-term objectives
- Plan of action for how to strategically execute those goals
- List of staff, key volunteers, and ministries
- Financial plan (How church finances will be managed)
It begins with an executive summary (which you should write last), offering an overview of the church’s mission, goals, and strategies.
Next up, the mission, values, and vision section outlines the church’s purpose, core principles, and long-term aspirations.
Short-term and long-term objectives set specific, measurable goals for the church’s development.
A plan of action details the steps to achieve these goals, including timelines and responsibilities.
Then the list of staff, key volunteers, and ministries defines leadership roles and their impact.
Lastly, the financial plan explains how the church will manage its income, expenses, and budget to sustain its mission.
Breakdown: Five Steps to Create Your Church Business Plan
I’ve said this before, and I’ll say it again — you aren’t meant to lead alone. Creating your church business plan should not be a solo effort, so recruit other staff members and key leaders to assist. The right church software tools can also be an aid in the process — and a time-saver!
1. The Executive Summary
The executive summary is an overview or synopsis of the entire business plan. It’s typically written last, but it appears first in the document.
It should concisely cover key points from each section of the business plan, giving readers a clear understanding of the church's overall direction without going into too much detail.
Aim to briefly summarize:
- Brief description of the church
- Mission statement
- High-level objectives
- Snapshot of the financial outlook
- Key growth strategies
2. Mission, Vision, and Values
This section outlines the church’s core identity and its purpose for existing. The following three elements are your why:
- Mission: The reason your church exists—what it strives to achieve within the community and for its members. It’s usually short and clear.
- Values: The core principles or beliefs that guide the church’s decisions and actions.
- Vision: What the church hopes to become or achieve in the future. It’s aspirational and paints a picture of the church’s desired long-term impact on its congregation and community.
3. Short Term, Long Term Goals and Objectives
This section outlines the church's specific goals, both short-term (usually 1-3 years) and long-term (3-10 years or more). These objectives should be measurable and attainable.
- Short-term objectives: Could include increasing membership, launching new ministries, renovating a church facility, or improving community outreach.
- Long-term objectives: Could focus on broader goals like expanding the church’s physical presence (e.g., new building projects), establishing a church plant, or creating endowment funds for sustained financial support.
4. Plan of Action
This section explains how the church plans to achieve its objectives. It should outline specific actions, timelines, and who is responsible for each task (i.e., key staff people or ministry leaders). This may feel like an item that warrants additional discussion and collaboration, so feel free to add it to your next church business meeting agenda.
- Strategies: These are the methods the church will use to meet its goals. For example, fundraising campaigns to support building projects, volunteer recruitment drives to boost ministry participation, or targeted outreach to attract new members.
- Action steps: Specific tasks for each goal, such as organizing events, launching new programs, or forming partnerships with other organizations.
- Timeline: A schedule for completing these tasks, with key milestones to measure progress along the way.
5. Ministries, Staff Members, Key Volunteers
This section outlines the leadership structure of the church, including paid staff and key volunteers. It should also describe the various ministries or programs within the church.
- Organizational structure:
- Staff: Include pastors, administrative staff, and other paid personnel, along with their roles and responsibilities.
- Key volunteers: Mention important volunteer positions, such as pastors, ministry leaders, board of directors, committee heads etc.
- Ministries: List the various ministries (e.g., children’s ministry, worship team, outreach programs) and their purposes. Highlight how each ministry contributes to the church’s overall mission and goals.
6. How Church Finances Will be Managed
The financial plan section covers how the church’s finances will be managed, including income sources, expenses, and budget projections.
- Income: Include tithes, donations, grants, fundraisers, and any other revenue sources. This section should estimate how much income the church expects to generate and where it will come from.
- Expenses: Outline anticipated costs, such as salaries, utilities, program expenses, building maintenance and property management, and mission work.
- Budget: Provide a detailed budget that allocates funds to different areas, ensuring that resources are distributed according to the church’s priorities.
- Financial management: Explain how finances will be tracked and reported, who is responsible for financial oversight (e.g., church treasurer, finance committee), and what internal controls are in place to ensure transparency and accountability.
Church Business Plan Template
I created a downloadable template to help guide your work. It should provide a clear and structured plan for church operations, while still being flexible enough to adapt to your church’s specific needs.
Expect the Best, Prepare for the Worst
Every church’s mission is built on the hope we have in Christ, and the local vision He has given us. In addition to staying true to your mission and vision, make sure you’re prepared for potential challenges that could impact your plans.
The following considerations outline how you can anticipate and mitigate risks, while remaining optimistic about your growth and success as you place your trust in Jesus.
1. Financial Contingencies
Even with careful financial planning, unexpected expenses or revenue shortfalls will occur. Make sure you and your team are aware of financial management best practices, and have a contingency plan for handling financial challenges.
- Reserve funds: Maintain a financial reserve or emergency fund to cover operating costs during periods of low giving or unforeseen expenses, such as building repairs or a drop in attendance.
- Diversifying income streams: Look for alternative revenue sources, such as renting church facilities, organizing fundraising events, or applying for grants (did you know there are even grants for church building repairs?).
- Adjustable budgets: Create a flexible budget that allows for scaling back non-essential expenditures in tough times, without compromising core ministries.
2. Leadership Succession Planning
The departure of key leaders, whatever the reason, can disrupt a church’s stability and day-to-day operations. Planning for leadership transitions ensures that the church’s mission continues uninterrupted, and that there are people willing to fill in the gaps.
- Succession plans: Identify and train future leaders within the church who can step into key roles when needed.
- Documentation of processes: Ensure that all important procedures, decision-making processes, and contacts are well-documented, so transitions are smoother.
- Interim leadership: Have a strategy in place for appointing interim leadership during periods of transition, such as a search committee for pastoral replacements.
3. Crisis Management
No one wants to think about the worst-case scenario coming true, but developing a plan for crisis management is important. Churches can face a range of crises, from natural disasters and health emergencies, to social unrest or internal conflicts. Do you have a church risk management plan?
A quick overview:
- Emergency procedures: Establish clear protocols for handling natural disasters, fire, or health emergencies during services or events. Ensure staff and volunteers are trained in safety procedures. (eg: do the kids program volunteers know how to safely get the kids out of the building in the event of a fire?)
- Communication strategy: Develop a plan for communicating with the congregation and community during a crisis, using multiple channels (e.g., email, social media, text alerts — or a good old fashioned phone call, for the elderly).
- Conflict resolution: Implement a conflict resolution strategy to manage potential disagreements within the church, ensuring issues are addressed in a spirit of unity and understanding. Your best bet in any conflict is to stay neutral, and point the involved parties to Scripture.
4. Maintaining Membership and Engagement
It’s normal for churches to experience fluctuations in membership and attendance. Life happens, people move, change churches. But while they are at your church, you can be proactive in helping to maintain congregational engagement (fancy term for maintaining their attention and attendance), even during challenging times. A few ideas for you to consider:
- Pray: Pray for your people (this one is pretty obvious, right?). Ask God to help you understand how to serve them and love them.
- Digital outreach: Invest in digital tools (live streaming services, social media, newsletters) to engage the congregation beyond in-person gatherings. This is particularly important during times when physical attendance may be affected by external factors, as well as when you consider how to stay connected with the younger generations.
- Small group initiatives: Develop small group programs that foster deeper friendships and connections. Small groups are often the heartbeat of a church. These connections can be vital in sustaining engagement if larger gatherings are disrupted.
- Volunteer engagement: Regularly recruit and train volunteers to ensure that ministries continue running smoothly, even if the church experiences dips in participation or leadership changes. And remember: celebrate growth, and celebrate your volunteers. A little bit of appreciation goes a long way!
5. Legal and Compliance Preparedness
It’s important to be aware of legal requirements and potential liabilities that could arise from our operations, programs, or property management.
(Btw, if this sounds excruciatingly boring, remember that you are not meant to lead alone. Who in your church is into admin, compliance, legal stuff? Ask them to take this on.)
Keep in mind:
- Insurance coverage: Ensure the church is adequately insured for property damage, liability claims, and other risks, such as personal injury during events.
- Legal compliance: Stay up to date on all legal obligations, including tax laws, employment regulations, and safety codes. Ensure that the church is operating within all applicable legal frameworks to avoid penalties.
- Child protection policies: Implement and regularly review policies to ensure the safety of children in the church, including background checks for volunteers working with minors, and clear protocols for reporting issues.
Ultimately, a church business plan isn't merely about spreadsheets and budgets — it's about putting faith into action with purpose and direction, and ensuring your church is equipped to grow, serve, and thrive for years to come.
It's about putting faith into action with purpose and direction, and ensuring your church is equipped to grow, serve, and thrive for years to come.
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