Maybe your scrapping career started as a side job for some extra cash; then, you realized it was time to start growing your services to pick-up materials from homeowners or business owners. Some scrappers have the truck and the trailer to haul larger loads away from job sites. Maybe that is your next step in growing your scrap business with a property for scrapping and accepting customers too.
If you have started your own scrap business and established customers and some locations you are constantly picking up materials from, it may be time to consider growing your business. Growing a new business can be daunting, but it doesn’t have to be if you have a goal in mind. The iScrap App team has over 40 years of experience in the scrap industry, and there are some things to keep in mind to help grow your scrap business.
What Is The Current Status of Your Scrap Business?
Something to consider before you dream of opening a 10-acre scrap facility is where you are right now. Do a status check for your scrap business and determine your current position. Some questions and things to consider are:
- Do you have enough time? – If you are working at another job and your scrap business is not full-time, will you have the time to dedicate to growing your scrap business? It’s essential to think about because while you are growing your business, you will still need income, and not having the time to complete your other “transition” job for income can become a problem.
- Do you have the right tools? – This doesn’t mean the right tools to take apart a computer or remove materials with a truck trailer. This means business tools. Have you filed your company with the state? It’s essential to do so before you start expanding. When you become more prominent, liabilities and legalities are important to register your scrap business.
- Do you have the space? – Scrapping requires space. Space to store your materials, tools, and equipment, and eventually, a place for customers to drop off materials. This is important to consider if you want to take your scrap to the next level.
- Do you have the money? – This will probably be the most crucial question you must ask yourself before growing your scrap business. Several expenses must be paid to operate, from insurance to equipment, employees, business services, and more. Making sure you have good credit in case you need to take a business loan out is important. Also, ensuring you have no outstanding debts is a good idea.
- Do you have insurance? – Just like when you have a car, it’s important to have insurance for yourself and to look into getting it for your business and what the cost would be. If you will be using equipment and trucks on the road, insurance is a must to operate well.
Business Plan For Growing Your Scrap Business
When creating your scrap business, it’s a good idea to have a plan either written down or discussed with any business partners you work with. When moving on to the more extensive expansion of your scrap business, figuring out where to start can be overwhelming. We have some things to help you organize your plans and tools that are good to have to get your scrap empire growing. There are a few things you will want first to establish when planning your next step.
Register Your Business
To start, it’s vital to register your business with your state. This will be helpful when filing taxes, protecting your assets as a business, and organizing your finances. The iScrap App Team cannot provide legal assistance or best practices for registering your business, so we suggest contacting your business bureau in your state for resources and helpful guidance. A great resource is the Small Business Administration, which is a part of the US Government.
Suggested Resource: 10 Steps for Starting Your Small Business
How Big Do You Want To Be?
Are you looking to be a mobile fleet of trucks on the road, constantly buying materials and picking scrap up? Are you looking for property to buy and sell metals from? These are important questions to ask yourself. Being a more established mobile service scrap business, you have more flexibility to travel and do various jobs of various sizes. Also, to be a successful mobile service, you must maintain your equipment regularly, and having multiple trucks on the road will be your best option to have materials flowing constantly. Remember that trucks break down, so it could be tough for you if you don’t have a backup plan to pick up material.
If you want to go the more ‘brick and mortar” route, owning a property and running a scrap yard there is a big undertaking. You must ensure that you are first allowed to have a scrap yard there based on the zoning laws and regulations in your town or city. Also, you have to consider things like security and storing your materials. Buying or leasing a property can be a large financial burden, so ensure you know you will have the customers lined up to make necessary payments.
How Are You Going To Get More Customers?
When scrapping is your full-time job, you have to ensure that you are consistently making money. There are several ways to market your scrap services, including a website and online advertising. The days of newspaper ads and billboards are dwindling fast. With most of the population using their smartphones to find local businesses, marketing your services online in various places is vital.
If you are a location-based scrap yard, the iScrap App is always a great option for online marketing and advertising for your region. But also buying online ad services and being active on social media is a good place to start. Remember, when you are posting as your company, you want it to represent your services, so be sure to have rules set in place for what you want to share.
Who Are Your Competitors?
Yes, you are going to have competitors. You may not have thought about that when planning all of your business endeavors, but it’s a reality. There are bound to be at least one if not several, scrap yards in your immediate area that you will be competing with to collect scrap. Knowing how they operate and their pricing structure is a good idea to get your feet set for how you will operate your business.
Start The Best Route For Success
If you have gone through some of the basics of planning your scrap business, it’s time to execute. Start small and think through every decision. Be smart with your money and your investments, like equipment and employees. Remember, like any industry, scrap is constantly changing, so it’s crucial to have the flexibility to change and work through hard times like low scrap prices. Be sure to document all of your costs and expenses along with the money you are making. Good luck, and we can’t wait to see how your business grows!
