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 for business activity to bring 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. It is mandatory to register with the Pension Fund and the Social Insurance Fund, since without this it will not be possible to officially hire employees.

A scrap metal business can bring high income constantly, regardless of the season and the economic situation in the country. People constantly bring and hand over something made of metal. The most profitable option is a non-ferrous metal collection point. But there are many demands for its discovery, and legalizing it costs a lot. Therefore, most often they organize the collection of aluminum scrap or ferrous metals. As practice shows, it is better to do this with a partner.

Business stages

First of all, you need to register as individual entrepreneur. But if you organize a metal business together with a partner, you need to register an LLC. Please note that the business must have the appropriate license. Without it, it is impossible to work even in the first stages of business development. It is drawn up by the executive body of your locality. The problem is that it is difficult to obtain a license, and no one can guarantee that you will be given one if all your documents are in order. And all because a metal business can bring in 5-10 thousand dollars a month.

Business scheme

The metal business follows a simple scheme: accept scrap at one price and resell it to a wholesaler at a higher price. Therefore, first of all, you need to find out where the wholesale metal receiving center in your area is located. But try to place your receiving point away from it, otherwise clients will carry raw materials to the base and not to you.

A good option for organizing a business is to travel to surrounding villages and personally accept scrap metal from the population. Then the price can be set at your own discretion, especially if the wholesale base is very far away. Another option is to limit collection to wholesale quantities from businesses.

Location

The question of how to open a scrap metal collection point is first of all resolved by determining the location. Since wholesale centers accept only large quantities, the point must have a fairly spacious room or area for a warehouse. It is advisable to own it, since renting, especially at the initial stages, is not very profitable for a scrap metal business. If you have your own plot of land or garage, you can equip it. Just keep in mind that the process of receiving metal can cause a lot of noise, which will disturb the neighbors.

It is advantageous to place a point near factories that have stopped operating or in industrial zones of cities. Then the rent for the premises will be the lowest, especially if you place the point in a semi-basement or hangar. Please note that it must have heating and electricity.

In general, 20 square meters is enough to organize a point. m. It is possible to install a MAF for these purposes, but then you will need permission from utilities and the architectural department.

Staff

Of course, how to open a scrap metal collection point without staff? First of all, you will need an intake person if you do not intend to handle the intake yourself. Then you need to hire a watchman who will monitor the safety of the warehouse. Another important employee is the packer, who will sort the metals by type.

The difficulty with hired employees is that they often steal metal. Moreover, it is almost impossible to prove this if there are no video cameras in the warehouse. Sometimes employers themselves provoke them to such actions, paying them extremely little. As practice shows, with salaries of 200-300 dollars, there are no facts of theft if you hire conscientious employees.

Equipment

To organize the collection of scrap metal, you need to purchase special equipment:

• scales;
• hanging scales;
• magnet (to determine species composition metal);
• cutters or metal scissors;
• press machine;
• loader.

The last three types of equipment are optional at the initial stage, but over time it is advisable to purchase them. It is better to take electronic scales. This improves weighing accuracy. In addition, it is advisable to have separate scales for weighing raw materials up to 1 ton or more.

You will also need a truck to transport the metal to the wholesale warehouse. If you don’t have your own, you can rent or lease. As an option, an agreement is concluded with a cargo transportation company.

We are looking for clients

Still at the design stage necessary documents you need to look for clients who will rent metal to you. These can be both individuals and organizations. But you need to be prepared that at the initial stage there will be few clients. To increase their flow, you need to conduct an advertising campaign in your region.

First of all, this is advertising in newspapers, on bulletin boards, including the Internet, and banner advertising. As a rule, at first the point works with small batches, accepting kilograms of metal from the population, and then sorting and delivering the sorted raw materials in large batches to wholesale warehouses. But over time, you can find wholesale suppliers.

By the way, you should not immediately hand over the metal to the nearest wholesale warehouse. It is always worth visiting other organizations and choosing the most advantageous offer, taking into account transportation costs.

Starting capital amount

First, try to take part in grant support for entrepreneurs in Russian Federation. Although, in principle, starting this business will not require large investments.

First of all, expenses will go towards renting premises or land plot, if you don't have your own. Warehouse space costs approximately 20-30 thousand rubles. per month. About 15 thousand more rubles need to be allocated for salaries. Equipment tailored truck will cost another 100 thousand rubles.

In total, to open a business you will need about 140 thousand rubles. As practice shows, you can earn 15 thousand rubles from one truck of scrap metal taken to a wholesale depot. Accordingly, in a year you can earn up to 700 thousand rubles. If you properly organize the work of the collection point, as well as conduct a good advertising campaign at the start, you can return your investment within just a few months of work.

Many types entrepreneurial activity, for example, scrap metal businesses simply escape the sight of novice entrepreneurs, although with moderate investments you can get very good profits from them.

• What documents are needed to open a scrap metal receiving business?
• How much money do you need to start a scrap metal business?
• How much can you earn from accepting scrap metal?

A scrap metal collection point is a male-dominated field of activity that allows you to earn all year round large sums even in a crisis. The most important advantage of this business line is that in this case huge capital investments are not required, but the return is very good.

The scrap metal collection point will be profitable in any case. But as for how to make money on it, the main factor should be minimal competition. This should be an important consideration when choosing a place to do business.

The least income should be expected for those entrepreneurs who are going to open a scrap metal collection point in rural areas, but in a large industrial city the profit will definitely be impressive.

The business itself (reception of scrap metal) is unusual. Most often, entrepreneurial activity consists of selling a service to a consumer and receiving money in return. In the case of scrap metal, everything happens differently, since here clients bring metal, and the businessman gives them a certain amount for it. The amount of payment depends on the type of metal and current prices for it. They change frequently, so accurate calculations can only be made depending on the situation.

What documents are needed to open a scrap metal receiving business?

Without a clear business plan, it will simply be impossible to achieve success. When we're talking about about the scrap metal collection point, there are no special requirements, but laws and basic rules must be followed. For example, some “businessmen” believe that officially registering their item is not profitable. Therefore, they disguise it as a personal warehouse or garage. But this entails considerable fines, so if a businessman is determined for a long time to work in this area, he should officially register everything.

As for how to open a scrap metal collection point, first of all you need to obtain a license. All this is not expensive and does not take much time. To do this, employees of government agencies must provide a passport or other documentation for the equipment, documents on personnel qualifications and a receipt for paying for the license. In addition, an entrepreneur will need a personal passport and TIN code to register as an individual entrepreneur.

How much money do you need to start a scrap metal business?

As for investments, metal collection as a business will require huge sums; experienced businessmen claim that at the initial stage investments will not exceed 2 thousand dollars.

The payback in this case depends solely on the type of settlement and competition. Some businessmen manage to return their starting capital within a month, while others wait three times longer.

Even if a businessman plans to open a large collection point for non-ferrous metals, he will definitely need special equipment for the work, but there should not be large expenses. Nowadays, it is very convenient to lease or rent equipment. This turns out to be much more profitable than purchasing dump trucks and scales. An alternative option would be to purchase equipment on the secondary market, but such devices will not work for long and will definitely need to be replaced over time.

Experienced businessmen regarding how to make money at a metal receiving point say that for the normal operation of the point it is enough to have a metal press, a reloader, a couple of dump trucks and scales designed for large volume and weight. All this is convenient to rent.

How much can you earn from accepting scrap metal?

It has already been said above that the metal business is very different from many other types of entrepreneurial activity. Here the businessman pays his clients. But the benefit is that the population accepts the metal at one price, and then it is sold at three times the price.

The price for collecting scrap metal is set depending on the cost of a ton of metal. Black is accepted by wholesalers for one amount, and color is 4-5 times more expensive.

An interesting option would be to use aluminum cans. Now there are many companies in the country that use recycled aluminum raw materials to make products that are in demand by consumers. They even buy aluminum cans in bulk. The receiver can set a minimum weight for receiving raw materials, so as not to waste time on every kilogram.

The price that a businessman sets for collecting metal will affect the amount of profit. However, you should not reduce it excessively, as this can cause you to lose customers and lose your entire business. If you properly promote your scrap metal collection point, you can make a profit of up to 30 thousand dollars a year.

If an entrepreneur chooses this type of business for himself, he is unlikely to be able to cope on his own. Most often, relatives who will be honest are hired as assistants, because in this area it is difficult to control the entire work process. Workers should be prepared to work at night, as scrap metal supplies are especially active at this time. There are no days off at the scrap metal collection point, so there must be several acceptors.

It is quite possible that several employees will work at the same site. For example, if the total area is about 500 square meters, it will be difficult for one receiver to cope with this. Average wage for hired workers at a scrap metal collection point is $200, so finding staff will not be difficult. Honest assistants in this matter are an important component of business success.

AND Thus, we can state that the crisis, which hit metal sellers so severely, finally receded, and this happened in the spring of 2010. It was then that metal prices returned to pre-crisis levels. This immediately affected the activity of entrepreneurs - those who fled from this market segment soon returned, taking with them fresh hunters of fortune along the way. Some skeptics argue that this is a deceptive surge and is mainly due to the fact that construction intensifies in the spring and nothing more. This market is supposedly still far from real pre-crisis stability. However, I’ll figure it out msya.

As you know, the expectations of forecasters and other analysts greatly influence the real market itself. It changes in one direction or another, depending on whether an optimistic or pessimistic mood prevails in predictions about the near future. That's what happened this time too. Waiting for construction projects to emerge from hibernation, entrepreneurs jointly “raised” prices for scrap ferrous metal. Prices rose as follows: from 7 to 11 thousand rubles per ton... And the transportation of ferrous scrap itself increased by more than 50 percent. Purchase prices are rising! They (prices) in the European part of Russia today amount to 6 thousand rubles per ton. According to experts, this is the minimum figure at which you can even earn money - that is, the crisis has passed.

As for non-ferrous metals...

In the non-ferrous metal scrap segment, everything is much more better prices were stable even during the crisis, but even after the crisis they are only growing.

Experts draw the attention of entrepreneurs to a new benefit - scrap aluminum cans. Their current share in the entire volume of aluminum scrap is as much as 7%, and this is significant. If earlier it was unprofitable to deal with aluminum cans, now this is one of the tidbits, and all because from the scrap of these cans they have learned to make products with a higher added value than before. So it’s worth taking a serious look at this market segment.

Business “on aluminum cans” is a newfangled thing, it is simple and clear. Here is this primitive structure:

1) You buy and place special containers for cans in strategic places (option: place your own sorter at the garbage plant, who selects the necessary cans);

2) then pack (bag) the collected cans,

3) transport it to the enterprise yourself.

The margin you receive as a result is 20%.

Business on other scrap

What is necessary?

Required:

1) platform,

2) a press for packaging lightweight scrap,

3) laboratory for analysis chemical composition metals,

4) trained personnel,

5) investments from one million dollars, including:

6) loader (cost 400 thousand dollars, but you can buy it cheaper!)

7) special scales,

8) dump truck park.

Small business

So, the market is crowded with small and tiny players - black, gray and white entrepreneurs collecting non-ferrous and non-ferrous metals. How can you be one of them? What is needed for this?

Starting a business means opening a “reception point” which looks like an ordinary stall. This “stall” is nevertheless a serious business with a monthly turnover of 5 to 10 thousand dollars and a profitability of 20 percent. You will buy scrap, “by the kilogram,” simply from private individuals.

The only “problem”: it is impossible to obtain legal permission for such activities through legal means... Even experts unanimously say so. Not to mention the players themselves, who always make statements that are more frank and closer to reality. However, many players in the ferrous and non-ferrous metals market simply ignore this problem (the problem of obtaining a license) - they work just fine “in the ferrous”.

The fact is that the legislation on this issue has not been worked out, the wording of the laws is vague, which makes it possible to “fish in troubled waters.”

The situation is such that it allows almost any person with an entrepreneurial spirit to promote a business in just a month...

The scrap metal business makes money because entrepreneurs, eager to simply make temporary money from the price difference, do not pay taxes and ignore legislation on both labor protection and production organization. Environmental safety requirements are ignored to no less extent - that is, almost completely. Those working without a license and registration face a fine provided for in Article 14.26 of the Code of Administrative Offenses of the Russian Federation. This is an amount from 50 to 100 thousand rubles. But these fines do not bother anyone...

However, region is different from region. And in some regions, things are much more civilized - almost everyone who works there has been working for a long time, under a license, and is always interested in the “origin” of the scrap that unshaven individuals bring them to the acceptance point...

However, with very rare exceptions, it is still almost impossible to find out the origin of the metal being handed over. Of course, we are not talking about such obvious things as torn off rails or wires removed from poles - only complete criminals take this, whom we will not classify as “businessmen” within the framework of this article. But there are ways to “make up” stolen metal so that it does not arouse suspicion among the receiver.

Based on the above, you can conclude: it is profitable to accept scrap ferrous and non-ferrous metals. The crisis that brought down this industry for exactly a year has passed. And if you are not afraid of the difficulties associated with obtaining a license (or are not afraid of the difficulties associated with working without it), then you can easily open your own “stall”.