Small scrap metal buying yard

You pay walk-in sellers, contractors, repair shops and small factories for their scrap. Mills and larger processors pay you for bulk sorted loads.

You earn the gap between buy and sell prices, and better sorting, volume and steady commercial accounts help the margin. Some yards also offer roll-off containers for businesses.

• Grading and sorting metals
• Running a certified scale and keeping accurate records
• Negotiating with buyers and sellers
• Managing safety and basic equipment

• Zoning, scrap dealer licensing and environmental rules vary a lot by state and city, so confirm what applies to your site
• Recordkeeping, seller ID and payment rules are often strict, and some areas ban cash payments or require holds on certain items
• Environmental risks such as fluids from vehicles or appliances, so check what handling and cleanup rules apply
• General liability, property and workers' compensation insurance once you hire, plus fire risk from stored materials
• Theft and buying stolen material, so set clear rules on what you will not accept
• Prices swing with the commodity market, so avoid holding large stock without a plan

Startup costs are typically estimated at around $30,000 to $150,000, depending on whether you lease or own the site, your scale and equipment, and the stock you hold. Prices swing, so avoid holding large stock without a plan.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on the volume you buy, the grades you sort and what mills and processors pay. That is revenue before purchases, site costs and other expenses.

Check zoning, scrap dealer licensing and environmental rules for your site, plus recordkeeping, seller ID and payment rules, including any cash bans or holds. Also check fluid handling rules and insurance such as general liability, property and workers' compensation.