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Sunday, April 24, 2011

How To Start A Scrap Metal Recycling Company

The scrap metal business is booming even in this sluggish economy. If you are considering going into this business, there are three priorities that you must look at first.



1. Where will the accumulated metal be stored?

2. How will you ensure the holding areas safety?

3. How will you get your metal?

You need the answers to these three questions solved before beginning the business. The name is not as important as the job itself but just so you know these types of businesses are known by many different names. You may call it recycling, scrap yard, and waste metal recycling, wrecking yard and many others.

No matter what you choose to call yours there are some basics that you need to follow. It is a hand on type of business if getting dirty leaves you squeamish this is not for you. You will have to handle the product no matter its condition. You should have all the safety procedures in place before you start scrapping.

Now that you have all of that taken care of it is time to concentrate on how you are going to get the scrape for recycling. Scrap metal is collected from old automobiles, buildings, any surplus metal can be recycled. This is one thing that is in great demand because for manufacturers it is a cheaper source of metal than buying it pure from the ore.

The collection process can be of several types. A lot of people just want to get rid of what they see as useless junk. You can have a business that allows people to drop off their old metal objects for free. Or pay a small fee for the items. You can get items for free if you offer a hauling service as a part of your business. You can also go on salvage runs yourself. Either way you spend very little in a business that can mean huge profits.

The collection process can be of several types. A lot of people just want to get rid of what they see as useless junk. You can have a business that allows people to drop off their old metal objects for free. Or pay a small fee for the items. You can get items for free if you offer a hauling service as a part of your business. You can also go on salvage runs yourself. Either way you spend very little in a business that can mean huge profits.

Some businesses, like junkyards, resell car parts. Some pull and separate the parts for the customers but a lot of them now are using the self pull method. They will allow you to enter browse and remove the part yourself. This is done with a signed waiver of liability. Scrap metal is sold by weight not by the piece. This is important to know when starting your own business. Weight doesn't leave room for error.

These are the basics of starting a scrap business. As long as you pay strict attention to the possibility for physical injury your business should thrive. You must also be aware that some of the junk that comes in may be caustic or even toxic have this type of gear available and first aid for any contingency.

Article Source: http://EzineArticles.com/6204957

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