How To Start a Scrap Metal Export Business? – Small Business Plan
Qualifications Required: No particular qualification, though knowledge in business administration is a plus.
Key skills/Experience: A sound knowledge of finance and business affairs is a huge advantage.
Funding: Private/personal investment; bank loans available.
1. Business Overview
Scrap metals form a huge part of revenue in business. Starting any kind of business is daunting, but once you start, you will find it is rather simple.
You may be a scrap metal dealer wanting to export metal or looking out to buy scrap metals for export. Read on if you want to know how to be a Scrap dealer.
2. Being a Scrap Metal Dealer
Scout around for junk metal. Construction companies will have tons of metal waste. Offer to pick it up for free. Your neighbors will be very happy to give away their junk. Offer to haul up the metal for free. Request your neighbors to spread information about your business. After all, word of mouth information is still the best form of advertising. You will want your vehicle registered for your business. A van would come in handy.
Obtain a business license from your local government business license office. Print brochures and flyers and distribute them in places where you know lots of people go, like in coffee shops, grocery stores, and restaurants. Set a competitive price for your metal prices. After you’ve gathered your metals, figure out how to package your goods for resale.
Recycling centers are a good way to sell your scrap metal. Compare selling prices and price your goods at a competitive rate. Or you might skip the whole hog and look around for scrap metal suppliers to export them.
3. Exporting Your Metal Scraps
So, once you have established your business, you might start considering exporting your scraps for good money. Check with your local Association of Small Business to find out the rules on exporting products, particularly scrap metal, from your region. To start export, obtain an Import Export License from your government authority and a registered dock number to export form a particular dock.
Make sure your metal scarp in noncontaminated and nonhazardous. Have it checked in a lab. Spent batteries, metal containers with hazardous contents are classified as hazardous or special waste. You might need a pollution prevention and control permit, or a waste management license (in case of contaminated scrap).
You need to decide your delivery terms and requisites—will your selling cost include delivery to the customer’s property or just to the dock of export? This is an important area to which most first time exporters make mistakes and fall prey to. Make the terms, responsibilities, and conditions clear.
Additionally, there are several export management companies or export agents who can do the work for you. Hire an export agent to handle all of your export dealings and communications. You will have to pay them either a salary or they might agree to work on a commission base.
Usually, it works upon an agreed amount of money. You also need to consider the logistics and customs requirements for your business. Your export agent will help you in matters related to that. They will help you tap into international markets, handle and set up shipments, and get your goods through customs. Hire an accountant to take care of tax issues.
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