How to Start a Junk Shop or Scrap Trading Business
If you are looking for a promising business that is immune to fads or trends, and is at the same time part of a growing trend to preserve our environment, then you will be surprised that a junk shop business fits your criteria. It may not be glamorous, but many people have made millions in this seemingly humble business.
In developed countries, a junk shop is an establishment that buys and sells used items. However, since here in the Philippines most items that are sold to junk shops are rarely usable, the bulk of the income comes from scrap trading.
For those interested in this business, here are some tips to note:
Look for a suitable location. The type of operation will determine the lot area you will need. If you will just set up a buying station and carry the stock elsewhere, the place will only require around 25 square meters. But in this case, having a delivery vehicle is necessary to transport the materials. If you will start a warehouse operation, an area of at least 100 square meters is necessary. Make sure the site you pick does not flood, is properly zoned, and very accessible to those who will supply your inventory.
Buy the equipment needed. Have at least two kinds of industrial weighing scale: a platform scale (the type you could stand on) often called Bascula, and a hanging scale. Make sure you buy quality scales and that they are regularly calibrated for accuracy. They are critical to your success because if they register too light, you will lose suppliers who will be shortchanged. On the other hand, if they register too heavy, you will lose money. Other things you will need are an acetylene torch and gas tank, pulley, metal push carts and tools for extracting and handling materials. A pickup truck will only be essential at the start if your location is just a buying station.
Actively seek new suppliers. Do not just rely on sellers going to your place. Most already have client junk shops and are unlikely to shift unless you offer higher prices. One way you can do this inexpensively is by posting your service at free ad sites online. You can also allocate a budget for advertising on freely distributed local publications or make flyers yourself.
Buy only from reliable sources. Do not be tempted to buy materials or items from questionable sources. You may be legally liable for fencing if you happen to purchase an item that was stolen. Claiming ignorance of the source may not be sufficient to escape prosecution.
The junk shop and scrap trading business has a bright potential for big profits for the hardworking individual. However, to improve your chances, you need to learn more about this venture before investing your hard-earned capital.
To know more about this business, BusinessCoach, Inc., a leading business seminar provider, conducts a seminar entitled “Starting a Junk Shop and Scrap Trading Business.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.
Click here to view details of the seminar: Starting a Junk Shop and Scrap Trading Business »
*Originally published by the Manila Bulletin. C-4, Sunday, September 9, 2012. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.