One of the most potentially lucrative businesses you can start from scratch is a scrap metal business. Scrap metal is a consistently in demand commodity which can be mined from a number of different resources. With some time, knowledge and practice, you can grow your scrap metal business from a small startup to a successful enterprise. In addition to making relationships with metal recycling companies in your area who can pay you handsomely, consider these tips below.

Establish your work space and vehicle

Before you do anything else, you need to set up a place to store your scrap metal and a vehicle to help you collect your scrap metal. You can start as small as your garage, backyard or storage shed, depending on the type of property that you own. You can also purchase a used van or truck to get started collecting metal all over town. Keep your work space small initially, so that you can initially grow into a warehouse or other shop space that will be useful to you.

Determine your specialties and startup costs

Dealing in scrap metal will require startup costs that can range anywhere between $2000 and $10,000. There are many business models you can operate, including collecting reclaimed metals and selling them to metal recycling contractors, or sticking strictly to one type of metal to sell and recycle. With a relatively low startup cost, you can be well on your way toward a successful business venture.

Learn the best metals to collect and recycle

You have a lot of options of scrap metals to collect and recycle. Steel is the most recycled metal in the world and accounts for greater than 55% of metal processed in the United States. The recycling rates are extraordinary for steel, as steel cars fetch rates of 106%, appliances receive 90% recycling rates and construction-based steel receives 98% recycling rates. Other metals, such as aluminum, copper and nickel can also be lucrative and are often recycled.

Stay on top of the market prices

The prices that you can get from scrap metal buyers will depend on market conditions, which change every day. Stay on top of these prices by consistently reading the American Metals Market guide. Always staying on top of these matters will allow you to remain informed on your scrap metal sales and purchases.

Use these tips to allow you to bridge the gap between deciding to start a scrap metal business and turning it into your next big enterprise.