Undoubtedly, recycling businesses are more profitable than any other business because they require very little investment and have a good future scope.
We have already discussed the paper recycling business and waste tire recycling business. Now in this article, we will discuss a proper business plan to start a metal recycling business.
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So a lot to know, a lot to discuss, and without wasting time, let us now start with our article titled “ How to start a metal recycling business.”
Business Plan to start a metal recycling business
In this business plan, we will discuss many things. Let us discuss them one by one in detail:
#1 Raw material required to start a scrap metal recycling business
Scrap metal will be your raw material. But before starting this business, first of all, decide which metal you are going to recycle. There are various metals like iron, copper, aluminum, etc., which you can recycle, and all the metals have different melting and boiling points.
So it is necessary to choose one metal to increase effectiveness and efficiency, which will help increase the profitability of the business.
#2 Machines required to start a metal recycling business
There are different machines for recycling different types of metals. Various equipment like a conveyor belt, crushers, boilers, etc., is used for recycling scrap metals. In today’s time, you can buy a complete scrap metal recycling machine that will cost you about $30,000-$70,000 or Rs 12,000,00-Rs 30,000,00 ( on a small scale).
#3 Land and building required to start a metal recycling business
The need for land and building depends on the scale of your business. You can do this business in your home or an area of about 720 square feet on a very small scale, whereas you need a large area if you plan to do it on a large scale. Also, the cost of land is different for different areas, so calculate it accordingly.
#4 Workers required to start a metal recycling business
The metal recycling process is not easy, so you need to hire at least 1-2 skillful workers, even on a small scale.
On a large scale, you need to hire many skilled and unskilled workers. Skilled for the recycling process, unskilled for other works like cleaning the factory, transportation, etc.
#5 Other resources required for the metal recycling process
Apart from the above resources, you also need transportation facilities for the proper movement of scrap metal. Also, you need other facilities like electricity, water, etc., for the proper functioning of your business. So arrange them accordingly.
Business Opportunities of metal recycling business
There are a lot of business opportunities in the metal recycling business. Recycled metals can be used in many industries. For example, if you are recycling iron, then it can be used in the following industries:
- Steel Making industry
- Utensils making industry
- Furniture making industry and many more
You can also start your own business from recycled iron to earn more profits. You can explore a lot of iron and steel business ideas.
Profitability of the metal recycling business
The metal recycling business is very profitable. It also has a bright future. According to my estimate, a small-scale businessman can easily make $90,000 per annum from the metal recycling business.
Investment required to start a metal recycling business?
On a small scale, you need to buy a small metal recycling machine and hire some workers with good skills. So, according to my estimate, you need a minimum amount of $11,020 in the United States or Rs 6,20,000 in India to start this business.
You need to hire many workers and require a proper place to store all the raw materials(scrap metal) and machines on a large scale. So, according to my estimate, you need a minimum amount of $5,20,000 in the United States or Rs 2.65 crore in India to start this business.
How to arrange funds for the metal recycling business?
On a small scale, a person can easily start this business with the help of his or her personal savings or can also take help from the government schemes, whereas on a large scale, it is almost impossible to save a large amount of money, so taking out a loan is the most suitable way of arranging funds.
Starting a small-scale business is always easy because it requires fewer funds and legal formalities. In contrast, a large-scale businessman has to invest a lot of money and comply with many legal formalities before starting any business.
Now let us summarise the whole article. You need raw materials, machines, workers, land, and buildings to start a metal recycling business. A small scale businessman requires about $11,020 to start the metal recycling business on a small scale, which he or she can easily arrange from his or her personal savings or take help from the government schemes.
On the other hand, a large-scale businessman requires a massive investment of about $5,20,000 which he can arrange by taking loans from the bank.
Making money is not at all an easy task. You have to face good competition for earning money in any field. A person needs to be motivated and patient if he wants to earn money from metal recycling or any other business.
So stay motivated, stay patient, and with this note let us end this article and as always GOD BLESS YOU ALL.
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Frequently Asked Questions
Which equipment is used to recycle metal?
Various equipment like a conveyor belt, crushers, boilers, etc., is used for recycling scrap metals.
How much investment is required to start a metal recycling business on a large scale?
According to my estimate, you need a minimum amount of $5,20,000 in the United States or Rs 2.65 crore in India to start this business on a large scale..
How much area is required to start the metal recycling business on a very small scale?
You can do this business in your home or an area of about 720 square feet on a very small scale.