Scrap Metal Business Plan

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Scraps can be found almost everywhere – some are given for free, others have to be salvaged from wreckage or demolition sites, and others have to be bought outright.

In order to remain competitive, owners of scrap metal businesses try to keep their rates low, and try to sell their scraps high.

You will need a scrap metal license plate for each vehicle used to conduct business.

A license must be posted at each location where the licensee operates.

However, one great major concern, and one that should be the third on your priority list, is safety and security.

Obviously, scrap metal holding area poses a lot of risks when it comes to physical injury.On one hand, they sell scraps to the highest bidders or browsers and the less desired pieces are inevitably sent to smelting companies.In both cases, there is always a fast exchange of money, making this a very lucrative business enterprise.Haphazardly placed metal pieces may eventually topple over especially when “browsers” are covering the lot.There is also concerns regarding health and environmental issues – radioactive materials have been found in scrap metal yards before.As an owner of a scrap metal business, your second priority should be your holding area or the lot with which to hold all your scraps. Depending on the size and location of your holding area, your business may or may not be open to “browsers” or customers who wish to scan available scrap metal.Some scrap metal businesses allow browsers to walk into the holding area and extract whatever they need, provided that the customers supply their own tools for extraction, and that they waive any liability from personal injury during the extraction process.The second and third years of operation reflect large long-term asset purchases which reflects our intent to expand the business by opening additional facilities in those years.This expansion will be funded by business revenue with no anticipated need for outside financing.This business is a very hands-on business, where owners and scrap workers work directly with the “product” – sometimes even handling junk and rusty pieces of metal.Your first priority should be the accumulation of scrap: these are old, unwanted metal pieces that usually come from building supplies, discarded vehicle parts, and other surplus metal materials.


Comments Scrap Metal Business Plan

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