Small scrap metal buying yard

Processors and mills buy your sorted loads. Your suppliers are the public, trades, farms and small manufacturers, who you pay by weight.

You buy by weight, sort into grades and sell at a higher price once you have larger volumes. The margin is the price difference, minus rent, labour and hauling.

• Grading and pricing metals
• Record-keeping and compliance
• Managing safety on a work site

• Zoning, environmental approvals and site rules for scrap yards vary by province and municipality, so check early as they can take months
• Many places require scrap dealer licences and records of sellers' ID and purchases, so check with your municipality and provincial regulator
• Rules on handling fluids, refrigerants, batteries and contaminated metal, and on stormwater runoff
• Fire, equipment and lifting risks, so look into WCB/WSIB coverage if you hire
• Metal prices swing and the margin is thin, so keep a cash buffer
• Check commercial general liability and property insurance, and note that theft is a risk

Startup costs are typically estimated at around $25,000 to $120,000, depending on the site, weigh scale and equipment you need. Metal prices swing and margins are thin, so keep a cash buffer.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on how much metal you buy, sort and sell in bulk. Margins are thin, so revenue is not the same as profit.

Check zoning, environmental approvals and site rules early, as they vary by province and municipality and can take months. Also check scrap dealer licences, records of sellers' ID and purchases, rules on fluids and batteries, stormwater runoff, and insurance.