Scrap metal does not include aluminum, steel, and used motor cars only. It includes Gold, Silver, Lead, Tin, Copper, Nickel, etc. and all other metals which can be recycled. We can broadly divide it into three categories – ferrous, nonferrous metals, and others. Ferrous metals contain iron and are commonly found in old machinery, home appliances, and automobile engines etcetera. Nonferrous metals contain metals like copper, brass, aluminum, magnesium, and alloys, and are commonly found in copper wire and piping, brass fixtures, aluminum siding, chairs, etcetera. And, others include precious metals like gold and silver.
We have metal products all around us and every day tons of these metal turn into scrap which can be reused further. If conducted with precision, scrap metal recycling can be a lucrative business; the only challenge that you might face in this business is the initial capital. If you can manage a start-up capital of $2k to $10k, and possess a good knowledge of metals, you can earn a good profit out of this business.
As a fundamental step in managing your scrap metal business profitably you need to know the difference between each of the types of scrap metals and understand the laws implacable for each.
Essential requirements for managing a scrap metal business
1. Hire an attorney
The rules for scrap metal collection in Sydney is strict, and you must ensure to abide by them. As an individual, it is not possible for you to understand every law and restriction. So, for doing scrap metal business in Sydney or any other state, hire a local attorney who has a thorough knowledge of the local council’s rules along with the country’s legal policies. Moreover, it will also give you more time to focus on the areas of the business.
2. Get acquainted with the locality
You need to know the area from where you are planning to collate your scrap metals. You can find out the information from local people, or Yellow Pages or the internet.
The two crucial channels in this business are – the dealers and the collectors. For the success of both, it is imperative that these two channels work in close collaboration. The collector helps in collecting scrap metals from different places and transport it the dealers, who then sell it to the retailers or individual buyers.
3. Be careful
Scrap metal contains hazardous items like sharp, bulky, and toxic items which can cause accidents if not collected with precaution. Regular exposure to harmful elements can be very unhealthy, so make sure that you deal with these products carefully. Until you can arrange a pulley or a crane, do not opt for collecting bulky items like motor vehicles.
Some of the essential elements of safe collecting include safety glasses, gloves, shoes, hearing protection, welding mask, and a first aid kit. Invest money in these and purchase well-recommended products only.
Moreover, it is a time-consuming process, so follow a proper schedule.
Once the scrap metals are collected, transporting them to the warehouse or the desired location is another critical task.
4. Transporting your scrap metals
- You need to decide on a sturdy and safe vehicle to first pick up heavy materials and then to carry them.
- Depending on the weight of the metals use pulleys, cranes, or pickup trucks to pick up the scrap.
- Arrange a storage unit or a trailer with sufficient space for sorting these metals properly, and confirm that it’s safe and sound so that your metals aren’t stolen even before you sell them. A yard is an ideal place to carry out this activity, but you need to keep in mind the safety factor.
- For transporting them, you will need trucks, or vans, which are large enough and have enough space for transporting the metal. Though you might be dealing in scrap metals, you must ensure that your vehicle is in good condition. Since they will be carrying rusted and sharp items, the interior must be rust proof and can endure sharp objects.
- Get your vehicles insured to protect them from any accidents.