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	Steven D. Strauss Author of The Small Business Bible
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	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
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	Tom Severance Author of Business Start-Up Guide
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Entrepreneur Profile

Beth Thomas

Redwood Children’s Center

Redwood City, CA

Child care has long been a popular option for stay-at-home moms who want to generate an income; however, this mom waited until her kids were grown to devote her life to taking care of children. Beth Thomas, 57, is the owner of Redwood Children’s Center, a pre-school that serves 51 families and maintains a list of up to 70 families waiting for a chance to enroll.

Thomas was an active mom of two boys who supported her husband with his real estate business. Like more than 50% of Americans, Thomas’s marriage ended in divorce--leaving her wondering what to do with the rest of her life. She decided to take classes in Early Childhood Education (ECE) and took a job at a preschool in 1992.

Five years later she formed a partnership with the owner of the school and together they opened a second school in Redwood City, CA in 1999. Personality conflicts and mounting stress prompted Thomas to dissolve the partnership three years later. “The desire to operate my own business was the motivating factor.”

“My partner wanted me to be more of a manager, but I wanted to be in the school,” says Thomas. “I have a passion for teaching and I love the every day interaction with the children and their families. That’s what brings me joy.”

Running a child care center means that Thomas has to meet a lot of government-imposed regulations. “It’s difficult to find a building with the square footage that I need inside and out. That’s why so many centers are located in churches and schools because they’re already set up to meet the requirements.” Regulations require that the site has 35 square-feet of space per child inside, and 75 square-feet of space outside.

The Redwood Children’s Center is licensed by the Department of Social Services (DSS). Inspectors from the DSS can drop in anytime without warning. “Whatever they ask for, you just have to hand over,” says Thomas. That includes files on children and staff.

Teachers at the school must have ECE units, first aid, and CPR certification. The school must also maintain a ratio of one teacher to every twelve students. Staffing levels are critical and Thomas says, “Finding and keeping quality employees is by far my biggest challenge.” She has tried a variety of methods to locate new employees and says that the ads she’s placed on Craigslist.org have produced the best results.

“There is a balance between what you can charge working parents and what you can pay employees to keep them,” says Thomas. She tries to be flexible with her employees, allowing them time out to attend to medical appointments and other personal errands. “By doing that, I’m hoping they will be less inclined to call in sick,” a situation that means Thomas has to fill in for the missing teacher.

On a typical day, Thomas spends her time on paperwork, filling in for teachers who are out, and even deals with janitorial and plumbing mishaps. “I’m the typical small business owner. There is no job that I don’t do because that’s what it takes to make a business work.”

The only advertising expense comes from an ad in the phone book since word of mouth keeps the waiting list filled with anxious families. “The need for quality childcare and preschools is phenomenal,” says Thomas. She doesn’t see the potential implementation of universal childcare as a threat. “Parents have the right to choose. We do a better job so I don’t worry about it affecting my business.”

Because business is booming, Thomas says she would like to expand her center to serve 100 children and offer infant-care through kindergarten. Unfortunately, her business is located on the cusp of the Silicon Valley, an area where real estate prices run high. As she continues her search for a bigger and better location, she certainly seems to be enjoying the ride. “I enjoy being a mentor for my teachers and also with the parents. Educating the parents can be difficult because they are afraid to be parents and to say no. Children need boundaries.”

As for her decision to run the business on her own, Thomas says, “I’m a committee of one. It’s easier to make a decision. I can also decide to take next week off and don’t have to worry about running it by someone else.”

Though there are long hours and hiring challenges, Thomas says, “You have to be willing to take the downside along with the upside. In my case, the reward is so much bigger than the downside.”

Thomas says that she wouldn’t do anything differently. “I like to think that life has a plan. All those years of experience as an employee and a teacher prepared me for what I’m doing now. This isn’t a field where you can read a book and go do it. You have to have lots of common sense.”

Her advice for entrepreneurs: “It’s not as scary as we immediately think it is. And if you do what you love, all of the other pieces fall into place.”