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How to Start a Scrap Yard

Join the sophisticated, moneymaking industry that is scrap recycling. Scrap yards provide energy and environmental saving solutions for providing resources to the manufacturing industry. In 2009, the United States exported 21.4 billion dollars of scrap commodities [source: ISRI]. You can start your own scrap yard by following these tips:

  1. Find a location Scrap yards require a lot of space to store and process the materials they collect. Different states, counties and municipalities have their own regulations regarding businesses and the collection and processing of materials. Check with state and city government offices so you can find a place where you can set up the kind of scrap business you want to have [source: Rhode Island].
  2. Invest in equipment and machinery Scrap yards need large machines to process recycled materials. Scrap metal needs compactors and crushers, textiles need balers, paper needs shredders. Decide what materials you will scrap and prepare your site to handle it all [source: Georgia Baler and Compactor].
  3. Network within the industry The key to success in most businesses is networking. Build relationships with trucking services and other scrap yards. Contact manufacturers that use recycled materials. Scrap yards are basically trading posts. The business is all about buying and reselling. Join associations such as the Institute of Scrap Recycling Industries [source: ISRI].
  4. Advertise There are numerous industry trade listings, guides, Web sites and other places where companies look for places to sell and buy scrap material. Get your name out as much as possible. Look for opportunities to both buy and sell material overseas as well as domestically.