Small scrap and second-hand buying yard

Recyclers and bulk buyers pay for sorted scrap. Shoppers and trade buyers pay for usable second-hand goods. Sellers are paid when they bring items in.

You buy by weight or item at a lower price than you resell for, and build up loads of sorted metal to sell in bulk. Usable goods can be resold at a higher margin.

• Pricing and negotiating
• Identifying metals and valuable items
• Record keeping and running a site safely

• Check for a state dealer licence and EPA approval, which may be required for scrap or second-hand sites
• Seller ID, record keeping and payment rules, which may restrict cash payments in some states
• Public liability insurance, plus workers compensation once you hire staff
• Safe handling of hazardous items like batteries, gas bottles and fridges, and site safety rules
• Theft risk and tight margins, as metal prices change

Startup costs are typically estimated at around $30,000 to $150,000, depending on your site, scales, bins, storage and insurance. Check whether a state dealer licence and EPA approval are required before you commit.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on volume and what you buy and on-sell. Margins can be tight because metal prices change, so revenue is not the same as profit.

Check for a state dealer licence and EPA approval, seller ID, record keeping and payment rules, since cash payments may be restricted in some states. Also check public liability insurance, workers compensation once you hire staff, and safe handling of hazardous items.