Author:
Joan Hall
Date Of Creation:
6 July 2021
Update Date:
1 July 2024
Content
Recycling and receiving scrap metal is a lucrative business for many, especially in times of economic hardship. Although it is a dirty and possibly dangerous job, high metal prices can make such a business very lucrative. Learn how to start a metal recycling business to decide if it's a worthwhile investment of time and resources.
Steps
1 Buy a truck or van large enough to transport scrap metal. It must be fully insured and in good condition to carry heavy materials. The interior must be such that it does not deteriorate from rust or sharp metal edges. 
2 Equip a place for metal recycling. Depending on how much and what kind of items you plan to collect, it could be a small storage compartment or even a trailer. If you want a large yard, then you will need to rent or purchase undeveloped area. Also, the area should be fenced off to prevent theft and possible prosecution for falling onto sharp objects. You also need an area for sorting and processing scrap. 
3 Start negotiating the receipt of scrap metal. Potential sources are businesses that use metal and leave waste, homeowners who throw away items such as refrigerators and air conditioners, and construction sites. The federal government is also a source of scrap metal. Some companies may require you to pay for the metal. 
4 Advertise in the local newspaper, on Internet bulletin boards, and hand out flyers. Let your neighbors know that you have started a metal recycling business and ask them to send you all the scrap metal. 
5 Monitor metal prices regularly to understand what price to charge and how much to pay for scrap. Find out the differences between different types of metals. Copper, alloys and steel cost very differently. Metal prices fluctuate, so it's important to keep up with their value. 
6 Find collectors and recyclers of metal to whom you will sell scrap metal. Alternatively, a local landfill or recycling center. You can also run advertisements that you are selling scrap metal. If you decide to open your own pick-up point, then you can open at a specific time so that customers can see and buy scrap metal. 
7 Develop a schedule. Set aside time to sort and disassemble the metal and collect and deliver it to a recycling center or customer. 
8 Invest in protective gear. Handling scrap metal is dangerous and can cause cuts, rust damage, or injury from falling metal parts. There is also a risk that you will work with radioactive or other contaminated metals. 
9 Talk to your county or city about the required licenses and permits. If you own a scrap yard or other property open to the public, you may have zoning issues such as traffic, parking and security. 
10 Consult a lawyer on how to start a metal recycling business that is legal and honest. Learn how to pay taxes, keep records, register with the Federal Tax Service, etc. 
11 Insure your vehicle and property. If you have a website that is open to the public, you will have to deal with the issue responsibly. At a minimum, ask customers to sign a disclaimer before entering the site.
