Results 1 to 20 of 27

Business question

| A Day in the Life of a Scrapper

Threaded View

  1. #22
    Scrappah is offline Metal Recycling Entrepreneur
    Scrappah's Avatar
    SMF Badges of Honor



    Member since
    Jun 2014
    Posts
    1,056
    Thanks
    318
    Thanked 1,416 Times in 674 Posts
    For whatever it's worth .... i started part time in the mid-90's and then went full time in 2001 after building a customer base. It's easier in a rural area because things aren't as formal. Keep it small, don't make problems for anyone, do the right thing, and you might be okay.

    Cash flow is the big thing. You've gotta build up some kind of a capital reserve to cover your operating expenses while you're waiting to get paid.

    For example: You do the work on the first of the month. You bill your customer at the end of the month. Net in 30 is pretty much standard practice so it can end up being sixty days from the time you do the work till the time you get paid. That's like two months with money going out before you see your first dollar of income. There are ways around cash flow problems but you've always got to be planning ahead.

    If you stay with your full time job now you've got a steady income. Maybe take on a few customers as a side gig after work or on the weekends ? Take that money and start building your business. In five or ten years you'll have your customer base built and all of your equipment will be paid for.



    It's a patient process but it's a sustainable way of going from smaller to bigger.

    Don't know about the big boys where you are but most of the established businesses in this area were founded two or three generations ago. The founder was just some guy that started out with little or nothing, worked his ass off, and built something over a lifetime.

    The packers in this rural area don't seem to last more than a few years. There's one guy that runs two pickup trucks that's been doing it for the last 40 years. There's another younger fulla that's running one truck and he's been in it for the last five years. A packer is a nice thing to have but it's more expensive to operate. Maybe you need a certain number of established customers before they become cost effective to operate ?

    Years ago ... i filled in for the guy that had the municipal trash pickup contract with the town for awhile. That was a steady income thing that paid on a regular basis. He always worked out of a 3/4 ton pickup with sides. It wasn't a big money thing but he was able to make a living at it.

    Any chance of underbidding someone with a municipal contract -or- buying an established business from an old timer that's getting ready to retire ? It's more risk but that would be a faster way of jumping in.

  2. The Following 2 Users say Thank You for This Post by Scrappah:


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

 
Browse the Most Recent Threads
On SMF In THIS CATEGORY.





OR

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

The Scrap Metal Forum

    The Scrap Metal Forum is the #1 scrap metal recycling community in the world. Here we talk about the scrap metal business, making money, where we connect with other scrappers, scrap yards and more.

SMF on Facebook and Twitter

Twitter Facebook