Small scrap metal yard

You pay walk-in sellers such as householders, tradespeople and small firms, and processors pay you for bulk loads of sorted metal.

You earn the margin between buying and selling prices. Higher volumes, good sorting of non-ferrous metals and low overheads improve the margin.

• Identifying and grading metals
• Pricing and negotiating
• Site safety and organisation
• Bookkeeping and record keeping

• A site licence is issued by the council, so check what conditions apply, including record keeping and CCTV
• You must check seller identity, keep records and avoid cash payments, so check the exact rules with your council
• Check planning permission and whether you need an environmental permit or exemption from the Environment Agency (or the equivalent in other UK nations)
• Employer's liability insurance is needed once you hire staff, plus public liability and buildings or contents cover
• Yards carry real safety risks from heavy machinery, sharp metal and fire, so plan training and safety procedures
• Metal prices can swing, which can squeeze margins
• Take care with potentially stolen metal, as dealers can face penalties if rules are not followed

Startup costs are typically around £15,000 to £60,000, depending on the site, scales, storage bins and safety equipment. Metal prices can swing, which can squeeze margins, so plan your cash carefully.

A site licence is issued by the council, so check its conditions, including record keeping and CCTV. Also check seller identity and record rules, avoiding cash payments, planning permission, whether you need an environmental permit or exemption, and employer's liability insurance once you hire staff.

Monthly revenue is typically around £5,000 to £25,000 as an estimate, depending on volumes and metal prices. A yard usually needs at least around 40 hours a week, and you need skills in grading metals, pricing, site safety and record keeping.