Simple Goal:Earn enough from scrapping to focus full time solely on business.
(We can decide on what that number is later)
Time Available:40 hours minimum next 2 weeks.
What is the most profitable way to spend this time?
Break down current stockpile. (estimated time)
Keep track of hours spent and resulting breakdowns.
? Maybe we cold create a breakdown paper form to record daily results. Perhaps other users reading this have forms or spreadsheets they would like to share. Moderator is there any chance we could start a section to post downloadable forms or templates. The real estate forum I use has a section for this and it is very useful. Look for a post to see if there is an interest among users to do so. This will give you an idea of the Return On Investment, (ROI) of the time you dedicate to breakdowns. This will enable you to set benchmarks for performance and to estimate time for future breakdowns. The end result will be you will see how you made the money and if the time is worth the effort or better spent pursuing some other work. For example I personally don't see a huge ROI for the time it takes to get the boards off hard drives. I just sell them as is however if you are willing and can market all the pieces the ROI may improve. You have to really look at all the angles. Boards, Alum, Magnets, Platters, etc. then decide for yourself. Find out what works best for you. Keeping a record or journal will give you a reference.
Network with current clients:
Keep track time spent and results.
Are you waiting for calls? Perhaps a proactive approach may work better. If my phone doesn't ring I make calls. Often you will hear "I've been meaning to call you." Mostly I simply tell them I am just touching base anything I can do for you? You will want to manage these contacts in some manner. What method you use is up to you. The best method to start may be a phone list, you paper database. Go down the page as time allows and check each name as you call. A cheap calendar or date book will help you keep track of when you last called and allow you to note specifics. You can also schedule future calls if they request a call in two weeks. When looking at the results you achieve they may not be as immediate as breaking down stock. The ROI will be measured of the life of the relationship. I would review this after say 3 months.
Prospect for new clients:
Keep track of time spent, area worked, and results.
In an effort to achieve scrap independence you will need to generate new leads for scrap. You may decide to devote a certain amount of time to different areas. Finding new ways to get
e-scrap, cars, or whatever scrap niche you want to focus on. Since we talked about e-scrap who generates it in your area. Computer repair shops, IT departments, Schools whatever you can come up with will work. As you go will hopefully continue to identify new targets. I came up with paper maps. Local cities have them, or you can buy a cheap one. Use it target area for maximum saturation and increase efficiency. Google the target play with search terms and make lists. The phone works best for me it allows the greatest number of contacts in the shortest period of time. Keep track of contacts and you will see your Law of Averages which will clearly define the number of contacts you have to make in order to achieve a new customer. If you make 15 contacts and get one new client the 150 contacts equals 10 new clients. It may be higher 25, 40, whatever it is if you make the effort over time the results will build. 40 calls a week for one year could potentially provide 52 new clients.
Work Area: You said your shop is 120-150 Sq. Ft. with the option to expand.
Vehicle:Chevy S-10
Do not neglect maintenance. Check fluids, tire pressure, lights etc. Five minutes could save you a few bucks for a turn signal ticket or get you extra mileage before you have to repair or replace something. I know this is obvious but easy to overlook. Any professional driver walks around the truck before leaving so I got in the habit of doing so. This might not seem like part of the business plan but the trucks the business without no way to execute on the plan.
Tools and Equipment:Scale, Sawzall, Hand tools
What you need to do is decide what you enjoy the most and what you do the best. Then focus on doing that. Eventually you will see a clear picture of where your efforts are best spent. If you can generate the material the time will come when you will have to decide how to maximize your potential. If you can pay $10 an hour for a breakdown guy and generate $30 an hour in material then you should focus on generating material. For now you are the CEO and Janitor as well as everything in between.
I believe that finding ways to generate enough material to bury you in that work area is the most important thing you can do. Balance that with breaking down stock to keep the cash flowing and you will have the resources to grow in whatever direction suites you best. If you can get a 30 yd. dumpster delivered for $50 for steel I don't see how you could pass that up. No way could I haul 30 yards of steel to the yard for that money considering the time. Every trip you don't have to make to the yard is time spent marketing.
TAKE SOME TIME TO CONSIDER THE ABOVE. What question do you have?
The Next Step:Marketing Plan
Take a little time and think of all the ways you currently market yourself. All of your advertising, print, internet, and social media to name a few. Once we identify what you are currently doing we will decide what is the best way for you to proceed. Also what can you afford to devote to your marketing budget?
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Originally Posted by AdmiralAluminum
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