Start A Scrap Metal Recycling Business - Business Ideas

Start A Scrap Metal Recycling Business - Business Ideas
Start A Scrap Metal Recycling Business

When the metal products we use every day come to an end of life, we either discard them or recycle them into useful products without loss of quality. Therefore, starting a metal recycling business can be profitable.

A full-service metal recycling business accepts large quantities of scrap from small scrap yards and the municipal collection points, breaks them down and prepares them for shipment to a manufacturer.

To start a metal recycling business, you need extensive acreage, machinery, and hardworking staff to help you collect and process scrap metal. Recycled metal materials can be used to produce construction supplies such as nails, screws, iron, or other metallic supplies for the construction industry.

Starting a scrap metal recycling business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell scrap metal recycled products, or selling scrap metal recycled products online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
starting costs
gross margin
time to build
270 days

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $151 $252
Website Costs $223 $7,015
Business Formation Fees $600 $4,700
Vehicle Expenses $0 $10,000
Retail Business Expenses $1,250 $6,650
Advertising & Marketing Costs $75 $3,986
Software Expenses $162 $2,720
Office Space Expenses $0 $100
Specific Industry Expenses $0 $500
Total Startup Costs $2,461 $35,923

Successful Businesses

Business URL Rank
Trans Metal #1,294,431
Metalico Rochester #1,549,352
myTOMRA #1,625,411
Scrap Metal Services #1,882,266
Cash for Trash #1,975,337
BR Metals #2,244,072
Lucky Group #2,557,679
Accurate Recycling Corporation #3,095,889
Pacific Iron & Metal #3,204,199
Sims Pacific Metals #3,250,513
Langille's Metal Recycling #3,376,962

Pros & Cons

Pros Description
Little startup costs required The cost to start a scrap metal recycling business costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.
Rewarding work Starting a scrap metal recycling business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Scrap Metal Recycling Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a scrap metal recycling business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A scrap metal recycling business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a scrap metal recycling business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a scrap metal recycling business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Taxes As a scrap metal recycling business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a scrap metal recycling business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Pat Walls,  Founder of Starter Story
Want to start your own business?

Hey! 👋I'm Pat Walls, the founder of Starter Story.

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