Starting a Junk Shop or Scrap Trading Business

If you are looking for a promising non-fad business that is at the same time part of a growing trend to preserve our environment, then you will be surprised that a junk shop business fits your criteria. The ambiance may not be glamorous but many people have made millions in this humble looking business.

In developed countries, junk shop is an establishment that buy and sell used items. However, since here in the Philippines most items that are sold to junk shops are rarely usable, the bulk of the income comes from scrap trading.

For those of you who are interested in this business, here are some tips for beginners to note:

• Look for a suitable location. The type of operation will determine the lot area you will need. If you will just set up a buying station and carry the stock elsewhere, the place will only require around twenty five square meters. But in this case having a delivery vehicle is necessary to transport the materials. If you will start a warehouse operation, an area of at least 100 square meters is necessary. Make sure the site you pick does not flood, is properly zoned and very accessible to those who will supply your inventory.

• Buy the junk shop equipment needed. Have, at least two kinds of industrial weighing scales: a platform scale (the type you could stand on) often called Bascula and a hanging scale. Make sure you buy quality scales and that they are regularly calibrated for accuracy. They are critical to your success because if they register too light you will be losing suppliers who will be short changed. On the other hand, if they register too heavy you will lose money. Other things you will need are an acetylene torch and gas tank, pulley, metal push carts and tools for extracting and handling materials. A pickup truck will only be essential at the start if your location is just a buying station.

• Actively seek new suppliers. Do not just rely on sellers going to your place. Most already have client junk shops and are unlikely to shift unless you offer higher prices. One way you can do this inexpensively is by posting your service at free ads sites online. You can also allocate a budget for advertising on freely distributed local publications or make flyers yourself.

• Buy only from reliable sources. Do not be tempted to buy materials or items from questionable sources. You may be legally liable for fencing if you happen to purchase an item that was stolen. Claiming ignorance of the source may not be sufficient to escape prosecution.

The junk shop and scrap trading business has a bright potential for big profits for the hard working individual. However, to improve your chances, you need to learn more about this venture before investing your hard-earned capital. To know more about this business, BusinessCoach, Inc., a leading business seminar provider, conducts an excellent seminar on this entitled Starting a Junk Shop and Scrap Trading Business. You may contact them at 727-5628, 727-8860, 0915-205-0133 or visit their website www.businesscoachphil.com for details.

By: BusinessCoach, Inc.

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