How To Start Your Own Scrap Metal Yard

How To Start Your Own Scrap Metal Yard
3 years ago

Who knew the profession of all things metal would be so complicated? When learning how to start your scrap metal yard, consider your network, the location of your business, and the equipment you will need. The world of scrap metal can be very rewarding when you take the proper steps to set up your yard.

Setting Your Entity Up

Before starting your business, make sure that you have a business plan and all your paperwork and licenses are approved—for example, insurance, taxes, and accounting. Ensure your building, land, and property have already undergone their inspection and are registered with your city. This is the only way you can ensure your business remains ongoing! If you need assistance, be sure you have a way to obtain it.


When you get out and network, you’ll meet people in the industry, and they will start sharing tips and tricks on how to start your own scrap metal yard. When attending events and outings, pay attention to the banter and quips. They will hold a lot of valuable information, which can put you ahead in the industry. Networking is a great way to know the industry—and what you’re getting yourself into—before you fully enter the field.


Get a space large enough to store all your materials and equipment. The location you select is vital due to city regulations and taxes. Certain areas have noise ordinances, and others have restrictions when it comes to collecting materials. If you need assistance with zoning regulations, call your local city department.


When you’re starting your own scrap metal scrap yard, there is equipment that every shop needs. Some must-have items are personal protective equipment so people can guard their vision and hearing, a metal cutting saw angle grinder, and throatless sheers. Knowing if you’re going to have clean or dirty metal will also help you determine if you need more equipment or not. Having the proper equipment is essential for your business’s success and longevity.

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