How to Start a Successful Scrap Metal Business

(source: eHow.com)

Instructions

1. • 1
     The first thing you need to do prior to opening a successful scrap metal business is find the right location. You have two general choices, depending on where you live and what the zoning requirements are with your city. You can select a location which is far away from other recyclers, and have less competition but start off with less customers, or you can select a location near other recyclers, this will increase your competition but will jump start your business faster having customers around the area.
   • 2
     Before starting the operation, you will need to do research and gather information regarding what you competitors are paying for individual metals.
   • 3
     You will need to find the right buyers for each material with the highest prices, giving you an
     advantage by been able to pay more to your customers.
   • 4
     You will need to determine what equipment you will need to start off with. I suggest getting only the basic equipment you need, such as scales, forklift, at least one baler, flat bed truck for transportation, boxes, shears, wire strippers, cutting torches, and various hand tools. Start with the minimum and buy as you need.
   • 5
     Check with your city, state, or province for licenses that are required for a scrap metal operation. This is critical to have prior to opening your business. Competitors will shut you down if you dont have a license.
   • 6
     Once you have gathered the buyers prices for individual metals, compare them to the prices your competitors are paying customers. Make sure the prices you set for your business are competitive, and have at least 25% net margin for any individual metal.
   • 7
     Remember that being honest with your customers will gain you loyal customers, which will help grow your business.
   • 8
     You will now be ready to open a successful scrap metal business.
   • 9
     For market scrap prices, articles, news, and to find yourself buyers locally, nationally or internationally, go to www.scrapmonster.com