scrap metal business plan

Scrap metal business plan

The scrap metal collector, as the frontline participant in the scrap supply chain, is a supplier to scrap dealers.

Scrappers perform an indispensable service in ensuring that end-of-life metal is collected and diverted into the recycling stream for the scrap metal collector, this activity provides several benefits, including:performing an environmentally important jobthe ability to generate incomeflexibility to pursue it on a full-time or part-time basisself-employmentsteady demand regardless of whether the economy is good or bada potentially modest start-up costbasic steps to becoming a scrap metal collectorstep 1 learn to recognize various types of scrap metal, including ferrous and nonferrous metals.


Ferrous metals include iron and are typically found in such products as obsolete machinery, stoves, refrigerators, and automobile engines. Typical scrap objects and materials include copper wire and piping, brass fixtures, aluminum siding, and chairs, etc. 1 copper is 99% copper by weight and free of any brass attachments or paint (think clean copper pipe), whereas #2 copper is 96% or more copper by 2 get acquainted with local scrap yards and their personnel and understand the pros and cons of various scrap dealers. Scrap operations can be looked up in the yellow pages or through an internet search.

By building relationships with local dealers, you will get a better understanding of material grades and identification, pricing and other your business grows you may wish to consider a 3/4 ton or larger pickup and an 18' utility trailer with a winch.

The use of separate buckets or containers for different types of metals can help minimize extra handling of material.

Ramps or hoists can help remove some of the physical effort required for metal 5 plan for a safe operation.

Start a scrap metal business

Also be mindful of potentially harmful substances that may be stored in scrap, such as gasoline in old vehicles, refrigerants in old air conditioning unit, or toxic substances in osha for a more comprehensive discussion of scrap metal 6 gather some basic tools of the scrap collecting trade, including a magnet, which helps identify ferrous metal and a grinding wheel, which can help identify metal type by what kind of spark it produces. Additional equipment can include various hammers, screwdrivers, wire cutters, pocket knife, drills, pliers and pry 7 determine where your best opportunities are for finding scrap, and develop collection routes. This may include small businesses, auto repair shops, demolition sites, plumbing businesses, and so on, as well as residential collection. If you find businesses that regularly generate scrap, you may wish to create a route that would include periodic pickup. It may be worth your while to arrange to drop a bin at a business to accumulate scrap. Other approaches include local advertising for scrap pickup or attending garage sales, for example, to look for old brass lamps or other metal ng tip one consideration to be mindful of is material theft.


Additionally, depending on the jurisdiction where you operate, such as in oregon, there may be specific scrap collection regulations, and many scrap metal dealers follow the scraptheftalert program.

Where such initiatives exist, you may require special licensing, or the scrap metal dealer may be required to photocopy your driver's license and pay by check. What you needpickup truck or utility trailermagnetgrinding wheelhammerscutterspersonal protective equipmentfirst aid kitmaps or gps cost business startup ideas in the recycling own boss: self-employment in the recycling ing industry, scrap, and solid waste role of metal shears for metal onic devices a rich source of precious metals for mattress recycling business sample business plans for recycling olson/getty images news/getty reneurs looking to get started with selling scrap metal require only modest investment while those with more substantial capital may consider starting or acquiring an asset-based ulty: averagetime required: 1 monthhere's how:know the product. Whether you looking at job site scrap or examining a scrap sample from a manufacturer, profitable transactions start with proper a business plan.

How to articles

Developing a business plan for your scrap metal business is an important first step in your decision-making and funding process.

Make a point of visiting scrap metal vendors in your area, and speak to regional business brokers who specialize in marketing such relationships.

How to instructions

With some sources of material, a pickup truck and sales relationships with local scrap dealers, you can quickly find yourself in a profitable business as a street metal collector.

Scrap collectors may gather scrap metal from smaller construction and renovation sites, automotive shops, or smaller businesses.

I recently saw a stack of business cards for one such entrepreneur at a local building supply store offering to remove construction and renovation -based business opportunities.

With a higher level of investment, one can start a recycling business or purchase a scrap metal business.

Starting a new site may be less costly than buying an existing business, but requires substantial industry-specific knowledge.

Starting a new business from scratch is also a riskier venture than purchasing one with a proven operations record and highly experienced employees.

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