Scrap metal collection point - where to start?

The first and most important thing for a novice entrepreneur is to assess his strengths and clearly define his goals. Metal reception, as a business, only works with the investment of personal time and money; this is the only way to expand and develop. If you don't have the motivation or resources to work on your business for more than 1 year, it's better to choose another source of income.

The second, no less important piece of advice is that opening a scrap metal collection point takes a few days, or at most months. But to make your business profitable, it must have a base. Evaluate the prospects:

If nearby a large number of scrap metal collection organizations - it is better to abandon this idea. They will have a built-up base of both suppliers and buyers, and you will only have expenses and disappointment.

At the initial stage, a scrap metal collection point business usually generates income only at retail. That is, you accept raw materials from the population in small quantities, and deliver them in bulk to the Metal Supply company. The difference, minus transportation and other expenses, will be your profit. Therefore, you need to look for places with high population density, or near large industrial facilities or dismantled enterprises with potential sources of scrap metal.

It is better to open a scrap metal collection point on rented sites with everything necessary equipment. You don’t have to spend money on hoists, loaders, or heating stations for workers. However, beware of renting or buying ready-made business for the reception of non-ferrous metals. If it remained profitable, it would not have been sold, is it logical?

Accepting metal can be profitable only if you have found a profitable partner to whom you will deliver raw materials in bulk. It is useful to start opening a collection point by searching for places where scrap is delivered in bulk, such as Metal Supply. These should be large companies, with favorable rates for scrap, paying money immediately in a form convenient for you. It is also convenient to enter into supply agreements, but they can only be signed after a long and successful cooperation.

It is undesirable to take out loans or debts for the business of receiving non-ferrous metals. This type of income is very situational and depends largely on word of mouth. Until they find out about you, until you have debugged the scheme of your business, months may pass, and interest on loans will be an extra reason to be nervous.

The basics are to register as an entrepreneur. If you plan to work with a partner, it may be more profitable to use LLC registration and obtaining a license. Important! A license for this type of business is required; it is issued by local governments by submitting an application and paying state fees. The reality is that the scrap metal business is very profitable, there is a lot of competition and pitfalls. Even if you submit documents, it is not at all a fact that you will receive a license and be allowed to work. Sometimes partnering with established businesses can help in this situation. This way you can become just one of the retail acceptance points.

Advantages:

• There is a proven business model;
• There is no need to bore yourself with legal issues;
• You get a database of points, it’s profitable;
• You receive immunity from regulatory authorities, because you are only one of the reception points;
• You receive the help of experienced colleagues, ready-to-use trained personnel, machinery, and equipment.

The disadvantages are obvious: less income, control from the mentor, lack of development.

Where is the money? How much can you earn in a scrap metal business?

There are several profit models:

• Reception of scrap from the population, its sorting, as a result - an increase in cost. This includes car dismantling, household appliances, recycling of various household scraps;
• Assembly of metal and its resale for wholesale - a scrap metal collection point works as a transshipment base; you have one partner, for example Metal Snab, who takes care of all the concerns about delivery and further processing. You receive the amount for raw materials at your point at the time of shipment;
• Obtaining grants and other municipal financial instruments for recycling scrap - this could be unused and dangerous metal structures, old factories, rails, and other infrastructure;
• Acceptance of metal from a vehicle - you drive around villages, nearby areas with scales and accept various types of scrap for scrap.

These are the most popular and cost-effective types business, each has its own advantages and disadvantages.

How much money do you need and how much can you earn?

• Rent of premises - a small warehouse will cost from 20 thousand rubles per month, in good location real estate will be more expensive;
• Salary for workers - for the first month you can do everything yourself, or hire a person - about 17 thousand rubles;
• A truck is needed in the future; at the first stage, you can order the removal of scrap metal from Metal Snab.

In our experience, scrap metal collection as a business making the right choice places can bring from 70,000 rubles per month in net profit, there are points with income in the first month from 100-120 thousand rubles. Therefore, if you are planning to start making money on scrap metal, and are looking for a reliable partner with favorable wholesale prices for scrap, call Metal Supply.

For any type of business, the main goal is profitability. A metal trading business will not be an exception, since this is precisely why the entrepreneur invests money and spends his energy. The main thing in this matter is to choose the most suitable field of activity for yourself, draw up a clear business plan and take into account various factors that can negatively or positively affect further work and income generation. If a businessman decides to engage in such a complex business as metal trading, first of all he will have to take care of drawing up a clear business plan, a premises with the necessary equipment and the selection of qualified employees.

• Where to start your own business selling metal?
• Registration and registration of a business selling metal
• Will ferrous metal products be in demand?
• What metals are best to trade? Product range
• How much can you earn from metal trading?
• How much money do you need to start a business?
• What equipment to choose for metal trading
• Which OKVED code should I indicate when registering?
• Do I need a permit to open a metal trading business?
• Sales technology

Where to start your own business selling metal?

Metal trading is a complex business and requires careful preparation before investing. First of all, you need to study the market and understand which products are most widely represented and which are in greatest demand. This will allow you to analyze the competition and calculate investments with return on investment.

Obtaining information about companies that occupy a given niche is an important condition, since the product must be competitive in order to entrepreneurial activity brought the required profit.

In any case, seasonality plays an important role. Selling metal is no exception. It is important to take into account that at certain times of the year the sale of metal products (for example,) will be more active. This is due to the fact that in warm time Construction starts much more frequently each year.

An important issue is the markup that an entrepreneur can set on his product. In order to understand the approximate cost of the metal, you need to monitor prices taking into account all nearby competitors. It is also worth looking at data from worldwide network. On the websites of metal sellers you can find a lot interesting information, which will be useful when organizing a business.

Once these issues have been resolved, you can start looking for premises. It should be large and best of all, if it is an industrial zone. It is necessary to immediately select qualified personnel. A significant part of the success of the entire enterprise depends on the work of hired employees, so everyone, from the loader to the manager, must do their job efficiently.

Think before you decide to open a business, weigh the pros and cons. Perhaps another type of activity is more suitable for you, for example, opening a coworking center. We invite you to read more about correct investment money and make money from it.

Registration and registration of a business selling metal

Need to register in tax office and Pension Fund. In the Federal Tax Service, it is better to choose the legal form of individual entrepreneur, which will allow you to minimize tax reporting. IN Pension Fund and it is mandatory to register with the Social Insurance Fund, since without this it will not be possible to officially hire employees.

The business idea of ​​making money from metal often comes to the minds of novice businessmen, but only a few entrepreneurs undertake its implementation. This fact promises very good prospects for those who decide to open a scrap metal collection point in a good location. The scrap metal category includes old cars that are not running and not suitable for disassembly, as well as electrical appliances that cannot be restored and various household items containing metal.

It may seem that the metal business is unattractive for most businessmen due to low profitability, but the reason for their loss of interest lies in another nuance - launching a project requires serious preparation and careful calculations. If you understand the specifics of this business and can apply theoretical skills in practice, then the results from such activities will be more than satisfactory.

Stages of implementing a metal business idea

The simplest and most profitable option for making money would be to resell metal purchased from the public or companies at low but competitive prices.

Marketing analysis

First of all, you will need to find out whether there is a scrap metal collection point in your city that offers high prices for accepted raw materials. If there is already a “promoted” point, opening your own recycling collection point will be a waste of time - people will go to their usual place out of inertia. And if you try to outbid your competitors, you will most likely incur serious losses.

Another option is to create several collection points at once in small towns that competitors have not yet reached, and transport the collected scrap metal to a warehouse in your city. The implementation of this idea will allow you to set optimal prices, without looking at the prices of your business colleagues, because residents of a town or village will only come to you. Ultimately, profitable purchase of raw materials will compensate fixed costs for renting premises and transport.

In some cases, even the presence of a large collection point does not prevent a merchant from opening a metal business, because the point may be located in another area of ​​the city or purchase raw materials only from wholesale suppliers who bring tons of metal. This situation will make it possible to organize reception centers aimed at single suppliers - ordinary residents of microdistricts. And having accumulated required quantity metal, reaching several tons, it will be possible to transport the raw materials to a company engaged in wholesale purchasing.

Choosing a place to run a metal business

The level of your income will largely depend on the correct location of the scrap metal collection point. Therefore, if you do not want to waste time and money, first consider everything possible options suitable premises, determine the advantages and disadvantages of each of them, and then purchase equipment and form a staff.

The owner of a private house, as an option, can organize workplace in your yard and at any time of the day to purchase metal. On the one hand, this is convenient - you don’t need to spend extra money on purchasing premises or on monthly payments of considerable amounts to the landlord. But on the other hand, do not forget about the neighbors living nearby who may not like your activities. Air pollution from approaching cars, noise from dismantling and sorting metal - all this can lead not only to a deterioration in good neighborly relations, but also to the imposition of a monetary penalty by regulatory authorities.

Absolutely perfect place It is quite difficult to find a place to accept scrap metal, because each option, in addition to obvious advantages, also has its disadvantages. By opening a collection point in a garage or country house, you can solve the problem with your neighbors, but the business owner will have to face other problems. The first step is to resolve the issue with the watchman and look for a reliable person who can ensure the safety of the received raw materials. At the same time, the hired employee must not only protect the scrap metal from the attacks of others, but also not personally take what does not belong to him.

It will be quite difficult to recognize the theft of several kilograms, because tons of metal will be stored in the warehouse. Another problem may be a lack of warehouse space or inconvenient access to the location of the receiving point. Even in a large garage it will be difficult to fit tons of metal, let alone sort it. Plus, roads leading to garages or country houses are most often unsuitable for large trucks.

Formation of the necessary staff

One of the workers at the scrap metal collection point has already been identified - this is a watchman or security guard, who is simply necessary when organizing a point at a decent distance from your home. If you are not going to do the metal receiving work personally, then the next person you need to hire will be a metal receiving person. This position should be filled by a person whose integrity you have no doubt about.

If there is a large turnover of raw materials, you will need a packer to sort scrap metal that has different compositions. And with low turnover, you can think about combining positions and reducing the staff, giving the receiver additional responsibilities as a packer. But you should not exclude situations of a large influx of people, which will lead to the need for your personal participation in the acceptance or packaging of metal, since one person will not be able to keep up with everything.

A good salary that you will pay to your employees will help minimize the risk of theft. As a rule, thefts happen to a greedy owner much more often than to an owner who values ​​the work of his employees. Many managers make the most common mistake of setting minimum salaries for financially responsible persons, and this leads employees to think about additional and easy income from stealing other people’s property.

By setting a high salary bar, you can easily force your employees to work responsibly and eliminate possible losses. Experts in this field recommend paying from 15 thousand to each hired person. It would also not hurt to install a video surveillance system, with which you can record the fact of theft and identify the criminals. By the way, employees who know that they are constantly being watched perform their duties much better. But do not rely entirely on the cameras and do not leave the work of the team without personal control - check the serviceability of the scales, monitor the acceptance of metal.

Purchase of necessary equipment

Starting a project will not require serious financial investments if you find a suitable location for organizing a reception point. All you need at the next stage is two types of scales and a specialized tool. Some scales are needed for receiving large quantities of metal from 1 ton, while others are needed for cargo of lesser weight. You will also need: a magnet, with which the receiver will determine the composition of the material being received, and a set of tools for disassembly various items and units handed over to a collection point.

You can not buy a car for transporting metal yet, but rent it. As your turnover increases, you can think about purchasing your own transport and purchasing a press machine.

I agree that at first this idea may seem strange on the one hand, and unprofitable on the other, but if you look closely at it, analyze all the nuances to the smallest detail, it turns out that this business is very attractive and very profitable. Metal almost literally lies under our feet, but not every person wants to make money from it, or, in extreme cases, simply does not know about this profitable business.

A scrap metal collection point can bring very good profits. This business is good because it will never fail, because metal in our days was, is and will be, and people who want to earn at least a penny will, albeit little by little, still bring scrap metal to the collection point. This project does not require large investments and can be undertaken by absolutely anyone, with absolutely any education.

What does it take to open a scrap metal collection point?
First, you need to find a premises where metal will be purchased from the population (you can accept metal at home in the garage, you can buy a premises for transporting metal, etc.). Secondly, you need to find a vehicle that will transport the metal to an organization for the purchase and processing of metals (if you don’t have personal transport, you can enter into an agreement with an organization involved in cargo transportation, or lease a car).

Thirdly, you will need scales (preferably electronic, as they will show the weight of the metal more accurately; two types of scales are needed - floor scales, for weighing ferrous metals, and wall-mounted scales, for weighing non-ferrous metals). You will also need metal scissors (or special metal cutters) and a press for baling scrap metal. Scissors and press prerequisites to open a scrap metal collection point.

Fourthly, we need staff. Usually this is a truck driver, 3-4 loaders and an accountant (the one who weighs the metal).

Fifthly, you need to register your business, at least as an individual entrepreneur, but also as an LLC, the main thing is that there is state registration, otherwise there may be big problems with executive authorities.

Marketing system or how to attract clients!
Before opening a scrap metal collection point, you need to find suppliers who will sell you metal (this can be private entrepreneurs, any organizations or the general public). I agree that immediately after the opening of the collection point, mountains of metal will not be brought to you, but they will still deliver it. First you need to place advertisements on banners, newspapers and bulletin boards. Gradually, people will be drawn to you who are not averse to handing over metal to your enterprise.
You will have to prove yourself as an honest and high-quality entrepreneur (I know from my own experience that at almost any enterprise that buys scrap metal, entrepreneurs turn up the scales, that is, for example, you brought 1 ton of ferrous metal, but the scales will show that there is only 850 kilogram) and then not only the population, but also private entrepreneurs and organizations will flock to you.

Of course, this business will not immediately bring huge profits (this simply does not happen), because you need to start small, for example, buy metal from people by the kilogram, and then hand it over to a recycling center in wholesale quantities of ferrous and non-ferrous metal. And over time, you will receive many orders for receiving metals, and then the turning point comes when the business takes off.

Next, you will need to find companies that have agreed to buy scrap metal from you in bulk. Travel to various scrap metal purchasing organizations, look at the price, quality of service and choose what is right for your organization.

Where can I get the money and how much does it cost?
IN Russian Federation Grant support for entrepreneurs is available! Don't miss your chance, if you really decide (after weighing all the pros and cons) to open a scrap metal collection point, then go ahead! If you look carefully, this business idea does not require large investments. Let's start with the premises. If you decide to rent a folding room, then it will cost you 20-30 thousand rubles per month (it seems to me that this is not too expensive).

Salaries to employees will cost you 10-15 thousand rubles per month, which is also not that expensive. The most important condition: issued on time wage- deposit successful work personnel.
Equipment including freight car, scales and scissors will cost you about 100 thousand rubles.

Let's summarize.
to open a scrap metal collection point you will need approximately 120 -140 thousand rubles
Project payback.
One car trip can bring in income of about 15 thousand rubles.
Annual revenue can amount to a good round sum (depending on how much metal was sold). On average, this is 550-700 thousand rubles per year. That is, when proper operation organization, the payback for this project will be several months after the opening of a scrap metal collection point. The most important thing is to remember the competition and set a competitive price, taking into account the real cost of this product on the market.

No matter how funny it may sound, the scrap metal business brings good money. It just needs to be organized correctly. And, for starters, you need to open a special point for accepting scrap metal.

It's not as simple as it seems at first glance. But this business is very promising, because the raw materials for it are practically inexhaustible. Of course, you will have to invest, and a lot. It will cost you about 750,000 rubles, but you will recoup it in just six months.

To get started, purchase a scale to weigh entire tons of metal. Regular scales with weights won't hurt either. You will use them to weigh non-ferrous metal and some additional materials. The scale will cost you approximately $300 to $600.

There was stagnation, prices fell sharply all over the world. Demand for ferrous metals fell by 50%. The domestic market is still functioning more or less, but exports are almost non-existent. The situation is different with non-ferrous metals. Prices are rising here, and the government even provides benefits, for example, reducing or even sometimes canceling export duties.

But don’t worry about prices, the crisis in this area receded a year ago. Now prices have returned to the level they were at before the crisis. And, naturally, businessmen are very happy about this fact.

Entrepreneurs are returning to this area of ​​the market again. They are trying to introduce some new ideas that they developed while the business was in decline. Although, according to some, the point is not that the crisis has passed, but that the construction season has begun. But you need to believe in the best. The crisis has greatly affected this market, but its prospects are very good.

Next step:

Nowadays, a business based on aluminum cans is relevant. The fact is that now quite expensive products are made from aluminum scrap, not like before. So we advise you to pay attention to this market.

And, despite the fact that it brings good income, it also has a simple structure. What does this require?

First, you need to purchase special containers designed for these cans. Next, place them in special places, or at the plant sorter. Then you just need to sort and pack the collected cans. And you can take them to special enterprises. For this you will receive a 20% margin, which is an excellent result.

What will it take to start a business?

Well, at least the place where you will work. Next, the press with which you will package lightweight scrap. We advise you to be more careful when choosing a press. As well as choosing everything you need for your business. You will also need a small laboratory where you will test the metal. It won't be possible to do without it.

After that, start training your staff. If you need good business, take responsibility for the qualifications of your employees. The more experienced and informed they are, the higher will be both the speed of work and the quality of the product. Therefore, do not neglect this circumstance.

And finally, equipment. You must remember that this will require a very large investment of money. You'll have to buy a couple of dump trucks, a loader, and don't forget about special scales. Without all this, the business will not work fully, and you will not make a profit.