Who can share me a profitable scrap metal business plan ?

you have done alot of research and gathered information and want to put 40k into it and have no plan?

are you wanting to start a small yard? maybe an escrap business? salvage yard?

what do you already have tools, equipment and property wise?

are you talking about a scrap yard where you would buy from scrappers? if you are I wouldn't think $40000 would get you very far, a trackhoe would set you back past that or even a truck scale, also Ive cashed 4 digits several times so if you had just 40 of those in one day not to mention the guys that bring in $5 worth of cans your initial investment money would be gone with a line out the gate still wanting paid. so if your talking a scrap yard you probably need at least a zero added to your number.

now if your talking about becoming a scrapper, 40000 would be more than sufficient for any specialty scrapping from cars to ewaste to cleanups

if I was starting over with your money with what I know now I would do the following. this is assuming you have no tools, trucks or trailers, just the shirt on your back and 40grand
1. late model truck, preferably a long bed, 3/4ton or larger, 4x4 if possible. budget up to 10grand
2. 1 16 foot utility trailer. you can haul anything on them from ewaste to cars. 1500 would get you a nice one
3. most important to me right now is a shop, if I had a shop everything would change, that's my goal right now and hope to have it by fall. 10000 in my area can get you a basic 30x40
4. tools as you need them, like jeremiah says you could spend 200 on a specialty tool that may take years to pay for in scrap return.

that's it truck, trailer, shop, tools and you still have over 15000 left, once you realize if you made the right decision or not and make some more money newer and bigger trucks trailers or tools, if you realize you made the wrong decision if you bought the truck and trailer at a good price you will be able to get your money back, and you can turn your shop into a mancave and stock it with 10000 worth of beer.

you my friend have a win win situation

i gotta be honest your in a unique place you have to much for multi stream scrap sorting and not enough for a yard

i started my business with alot less and it took WORK to pull in the #'S i nail down now but i have $40 k in inventory on the street at a time

I turned $100 and a business plan into a business that does 80k in sales a year, it took alot of work and ive made alot of mistakes along the way, but the journey paid off. Keep trying different things, you will find out what works best for you. I am always looking for new opportunities, i have sold everything from clothes to exotic metals. I have specialized into just a couple areas that work the best for me, escrap and car parts. You need to keep a good bankroll on hand if an excellent opportunity presents itself you will be ready to step in.

Originally Posted by peterscrap

... but i think I'll start Corycouch advice.

Good place to start. The other thing to consider is how mechanically inclined you are. More mechanical - you can get older equipment that needs some repair and save a lot. Less mechanical (like me) - go for new(er). Repair costs can put you out of business fast.

I have heard that an actual scrap yard is a low margin business. If you invest 40K that means some of this will go for equipment, land, etc...
The balance will go for actual inventory. How often can you turn what is left into a profit? How much profit do you have to make (this is margin plus turns) also called cash flow requirement.
This is the type of thinking that you need to achieve before you ask anyone for a business plan. Otherwise you could have a great plan but still not understand what it means.

Originally Posted by jghilino

I turned $100 and a business plan into a business that does 80k in sales a year, it took alot of work and ive made alot of mistakes along the way, but the journey paid off. Keep trying different things, you will find out what works best for you. I am always looking for new opportunities, i have sold everything from clothes to exotic metals. I have specialized into just a couple areas that work the best for me, escrap and car parts. You need to keep a good bankroll on hand if an excellent opportunity presents itself you will be ready to step in.

Wow very similar to my situation......Took the couple 100 in my pocket and found a guy with a truck to split costs with........Within a couple years had my own equipment and out on my own.......Now I specialize in Escrap and buying and selling printers/computers/laptops/or whatever makes a dollar..........It can be done but I have close to what he said in cash under my matress (not really) so don't come breaking down my door.....But I would never imagine opening a yard with that little capital

Join a scrap metal franchise.
Called GreenTruck.

Originally Posted by peterscrap

thanks everyone for your comments. I'll take your advices in consideration. currently I haven't bought anything yet. but i think I'll start Corycouch advice.

for whatever reason your waiting until next year it will give you plenty of time to shop and you shouldn't have to make any impulse purchases. after you get your truck you may want to go ahead and put an ad out for garage and shop cleanouts and try to schedule them in your spare time, that's how a lot of us started and you can get by without many tools and its a good way to pick up some tools, I even bought a 16ft trailer out of a shop for 700 not long after I started, the best thing about cleanouts is it gives you a variety of items and you usually just load the truck. it will help you to get familiar with your yard taking in some smaller loads also

good luck

the biggest problem i see is where you are starting from i do multistream recycling and core buying and $40k comes in and out the door a week honestly if i were you i would network learn my prices buy a 3/4 to 1 ton truck or box truck and some scales and go mobile first make sure you clear 15 to 25% on top of your investable inventory $$$ and in the beginning don"T hold very long and you can make 80-90 k a year honestly with $40k you can buy coppers cores wire catylics convertors etc. be prepared to know your **** though buyers decanners processors and the shops read up as well.

You will have to pay more in the beginning but played right with the right investment stragegy marketing strategy and tons of hard work it will become hugely rewarding

now i have to ask how much background do you have in scrapping trust me the hardest lessons will be learned the hardest way

Amen, you could not have said it better.