Written by: Emily Joswiak • January 19, 2022• Business

Tips for Starting a Scrap Metal Collecting Business

Tough economic times call for new means of making income. Start a new gig in an old profession with these tips for starting a scrap metal collecting business.

Some jobs never go out of style—scrap collecting, for one. Scrap collecting has existed ever since someone saw the benefits of reclaiming and turning in old metal or other materials to a dealer for money. If you’d like to start a full-time job as a scrap collector or a part-time side gig, here are several tips for starting a scrap metal collecting business.

Plan Ahead

Scrap collecting seems simple—drive around and look for metal people toss away. But if you intend to make a profit, you need to make a business plan. Project your expenses. For a low-level operation, you’ll need at least a few tools. These include a truck, hand tools and a blow torch for breaking down larger pieces, and a place to legally store and sort materials until you can sell them. Know your local laws. You may have to purchase a license to collect scrap as well. Insurance isn’t a bad idea either since it’s possible to injure yourself on the job. Know in advance what to do regarding both first aid and personal injury proceedings.

Find Clients and Buyers

Naturally, you won’t have much of a scrap collecting business without people willing to give you scrap. You can pick up scrap off the street, of course, but this is just one way to acquire it. Construction and demolition companies may let you collect scrap from their sites. Auto shops and used car dealerships may want to get rid of old stock. Homeowners may be eager to have old appliances taken away as well. As for selling, the biggest purchasers of scrap include junkyards, recycling companies, metal foundries, and the like. But be aware that many of these places may already have contracts and arrangements with other collectors. Still, keep your eyes and ears open and watch for money-making scrap that can be yours for the taking.

Stay on the Right Side of the Law

One of the biggest tips for starting a scrap metal collecting business is to keep it legit. Unscrupulous scrappers steal from construction sites, for example. But that’s an obvious crime. In general, avoid the appearance of illegitimacy. Even if an item seems like trash, seek permission before hauling it off. Closed factories and comparable sites provide a tempting array of large metal objects like broken-down machinery and abandoned vehicles. However, you run the risk of being arrested for trespassing or stealing if you’re caught on the premises. Always ask permission to scrap first—get the permission in writing.

Know Your Stuff, Then Collect It

Not all metals are the same. Learn to recognize the diverse types and what your clients will pay for. In general, scrapyards are willing to pay for aluminum, certain steels and irons, nickel, zinc, brass, tin, and copper. Read up on the tools and terms of the trade so you can better deal with your buyers. Finally, wear protective materials and learn to recognize hazardous materials while you collect and sort your stock.

Scrap collecting is a grubby job, but someone needs to do it and profit from it besides!

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