How to Start the Scrap Metal Recycling Business
scrap metal recycling process
Are you looking for ways to start a scrap metal recycling business? Do you want to know what to prepare? With so many people becoming eco-conscious, it is quite profitable to open your own scrap metal business. So next let’s learn about the related know-how.
1. Learn about the market. The scrap business is viable in your geographical location, right? How many are your competitors in your area? What’s the estimated volume of scrap available in your market? Learn about them.
2. Know the product. Do you want to open a general metal recycling facility or just focus on one or a few targeted metals? Understand the differences between ferrous metal and nonferrous metals.
3. Set up an area for metal recycling. Perhaps you already have an available space for doing the business. If not, you'll have to lease or purchase one. Make sure it is secure so that the stealer won’t caste his eyes on it. Starting a new site is usually less costly but riskier than buying an existing business with a proven operations record and highly experienced employees. Your business may or may not be open to customers who wish to scan available scrap metal.
4. Obtain the necessary permissions and the licenses. Consult the necessary websites to ensure you understand and comply with all state and local restrictions and to obtain the necessary permissions and the licenses. Find out how to handle taxes, accounting, and registration. Other issues involved may include traffic, parking, and safety. You can consult an attorney about these issues.
5. Buy the equipment. A truck, van or trailer that is large enough is quite a necessary and helpful assistant for collecting the scrap metal pieces. Purchase some containers for different types of metals. Shredders help to break down the metal into workable units. Baling presses compress the metal. Scales weigh the metal, which in turn determines the price. Buy a jumpsuit and some heavy gloves to protect you from dirt, and sharp scraps of metal. A magnet can help identify ferrous metal. When you deal with scrap copper cables, a wire stripping machine can relieve you from the labor of mass stripping. You may also be interested in a copper cable granulator that can make the cable into copper granules and plastic granules separately. Those copper granules can be sold to remelters, refineries, etc.
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