Purchasing from a competitor?

I also had another question along the same line,

What are thoughts on starting a scrap yard out here? We have a place I could stay for free, cheap land we can rent, and there is plenty of material! Like I said before, the closest yard out here is a hour and a half away and pays very little per ton. We would open a low budget, shoe string yard that buys from the local farmers and whoever else wants to bring in the metal. Almost every farm has metal out here because there isn't a easy way to bring it in and make it worth their three hours driving.

The equipment we would need would be a skid steer, a scale, and either a loader or a excavator with a magnet. Just estimating the costs (eBay and craigslist) we decided we could buy everything we would need for around $40,000 and say another $10,000 for buying capital?

It would be pretty easy to cash flow and you could fill up your spare time by cutting up the combines and tractors. I could run the yard while my brother ran the trucking, we also have a mini mill about the same distance from us as the yard we sell to. The person we know that buys here said that if we could get a least a semi worth (or a couple smaller trailers) we could sell directly to them and make a bit more.



Thoughts once again? Thanks

Opening a yard WAY above my pay grade

Couple things that do jump out at me
Not like the old days >> Meaning EVERYTHING is super regulated
Guessing it would take years and lots and LOTS of Ca$H to get all the permits in play
The Government agency like the EPA would have a lot to say

And there is no way you would be able to run an operation like that under the radar >> Even in the middle of no where
There is always someone asking questions

And 10K would not be nearly enough to cover the scale for 1 week