Tips for Starting a Junkyard Business
Whether it’s sheet metal, vehicles, wood, electronics, or whatever else, there’s money in junkyards. Don’t believe us? Americans throw away millions of pounds of junk, trash, and recyclable materials every year; why not make some money by sorting the materials and recycling them? Aside from the legal requirements for starting a business, and having the land, consider these tips for starting a junkyard business.
Have a Plan
Any business, regardless of its size, needs a business plan. Your business plan will act as your guiding light and help you make decisions based on your goals and mission. Your business plan doesn’t need to be anything fancy—you could write the plan on a napkin, just get it on paper or on a screen. A business plan at the very least should include the following:
- Your Purpose
- Mission Statement and Goals
- Market Analysis
- Financial Information
Just Start Somewhere
In order to be a successful business, what do you need? Profits. How do you make a profit? By offering products or services that people are willing to pay for. Every business starts somewhere. For example, Apple, Amazon, Disney, and Google were all started in a garage. To have a successful junkyard, you don’t need the largest land available and the best-of-the-best machinery, you just need to start somewhere. Make yourself known through cold calling or investing in social media marketing. Better yet, for long term success, work on an SEO strategy—just start somewhere.
Get Equipment from Reliable Suppliers
You don’t need the best equipment in the beginning, but you don’t want to go for what’s cheapest, either. If you choose the cheap option, you’ll have to replace your equipment before you know it. Think about the “good, better, best” scenario. You don’t need the best equipment, but the good equipment might not last, so instead go for the better option. That said, junkyards should work with high-quality industrial magnet suppliers, since you’ll use them a lot. Just do your research to ensure you’re choosing a quality industrial magnet supplier.
Every business needs to have a plan before starting up, but junkyards have a little more to think about than some other ventures. We hope these tips for starting a junkyard business helps your junkyard be successful.