Iron and its alloy steel have many uses and are probably the most common metal you’ll be scrapping. Iron is ferromagnetic, strong, and lighter than most other metals except for aluminum. While normally different shades of gray, it rusts into a reddish brown. Aluminum is non-ferromagnetic and very light. Like iron, it is ubiquitous. Pure copper is slightly pink, while lower grades are a reddish brown. It tarnishes into a jade green color. Copper is non-ferromagnetic and slightly heavier than iron. You’ll find copper in wiring and quality cookware. Bronze is an alloy of copper but is worth significantly less. It is a much lighter, almost gold color. It is commonly found in instruments, decorations, and pipe valves. Lead is extremely soft and heavy. It is typically used to make bullets and as radiation shielding. Keep in mind that lead is extremely toxic, so use protection when handling anything you suspect to contain it. Keep in mind that within these basic categories there are also many different grades with their own properties. For example, most stainless steel is non-ferromagnetic. Additionally, you will probably come across rarer valuable metals if you scrap electronics. Study these before starting your business.
While many buyers will purchase wiring as-is, some scrappers choose to strip it themselves to get the full copper value. Figure out if the difference in price is more than the cost of your time and labor. Stripping wire may be worthwhile when you’re first starting your business, but less important later on.
Protect the inside of your vehicle from possible damage or staining. If renting, make sure the rental company allows for commercial use of the vehicle. Cut down operating costs by choosing a vehicle with good fuel efficiency.
Hardhats should be worn when hauling bulky items or when near stacked metal. Wear thick spill-resistant gloves and boots when working with scrap. Respirators are necessary if hazardous particulates, such as asbestos, may be present. Wear welding goggles when cutting metal. [3] X Trustworthy Source US Occupational Safety and Health Administration U. S. government agency responsible for setting and enforcing workplace safety standards Go to source
If you live in the US, you will need to file an IRS 1099 Form each year as part of your tax return. Report all sales made. Be sure to claim deductible business expenses to reduce your tax burden. Use the Internal Revenue Service’s Cash Intensive Businesses Audit Techniques Guide as a reference. This document is available for free on their official website. [4] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
If you live in the United States and have at least one employee, your business must be compliant with standards set by the Occupational Safety and Health Administration (OSHA). Read the requirements on OSHA’s website before hiring to make sure you offer a safe work environment. [5] X Trustworthy Source US Occupational Safety and Health Administration U. S. government agency responsible for setting and enforcing workplace safety standards Go to source
If your business focuses only on more manageable items, such as wires and electronics, you can start out on your own.
The business transaction that comes from obtaining your scrap will vary. Many commercial sources will require payment from you. However, if you advertise as a junk-disposal business to consumers, you can often obtain scrap for free or even charge for your service.
