7 Steps To Become a Start-up in a Salvage Business

Making money from a business is not a big deal, but knowing the right business to start with respect to your skill sets, financial status and the location where you intend to start the business is the real McCoy. There are several businesses available to anyone who is serious about making money for himself or herself; there are businesses that require high technical skills, there are businesses that require little or no money to get started and there are businesses that require only basic sales and marketing skills. Whatever choice of business you make, ensure that it is one that will guarantee you business success.

One of the business choices you can make that will guarantee you huge returns on your investments especially if you know how to identify valuables in the midst of rubbles, is a salvage business. The salvage business is all about buying off properties from people who no longer need them. People or even organizations sell off their properties (equipment, furniture, gadgets, etc.) at very low prices simply because they no longer need them and they have new ones to replace them. So, what is expected of you is to buy these goods and then refurbish and resell them to those who are in need of them.

You stand the chance to make huge returns on your investment in this type of business especially if you know how to locate the right clients that would need your goods. For example; if you purchase properties (office equipment, furniture, gadgets, et al) from a distressed company, the right set of people to sell such goods to be startups who can’t afford to purchase brand new equipment or office equipment to kick start their business.

In some instances, you may even purchase used trucks and automobiles from distressed organizations and you can refurbish and resell them and make a huge profit margin. The bottom line is to know what to buy and who to sell to.

Here are some tips that will help you start your own salvage business from scratch and then build it to profitability within the shortest time frame;

Starting a Salvage Company – Sample Business Plan Template

1. Conduct Your Market Research

The salvage business has been in existence for decades and a lot of people are taking to this trade. If you are looking to start it too, then you must be ready to study the market. One of the ways to do this is by research. You may consider using the internet to read up on what needs to be known about the salvage business, success stories of the business, how one can start the business, the pros and cons, as well as other vital information.

2. Pool Your Cash Together

Your next port of call would be to gather the cash you can. If you have been in the habit of saving in the time past then you may want to bring to the table what you have saved. Otherwise, you may begin to look at seeking a loan at any of the banks or microfinance banks. There are also some angel investors that may want to buy into what you do.

3. Register Your Business and Purchase Insurance for the Business

Next up would be to register your business at the corporate affairs office or the chamber of commerce office. This might not gulp more cash, and it doesn’t take a while for you to be through with the registration process. You have to decide whether you want to register the business as a sole proprietorship, or a limited liability company.

4. Lease a Facility (Spacious Yard)

Now that things are looking up, then you can look to lease a facility. Here, you would need a spacious place that can accommodate all the goods that you would have on display. You can let your realtor know the business you want to start so that they can find you a befitting space.

5. Hire Employees and Acquire at least one or two Trucks

Your next port of call would be to hire employees. You need either experienced or inexperienced types. This is because what they are meant to do isn’t too technical. It includes lifting stuff and making sure that consumers get the best deal. You would also need some trucks for moving things around. You can consider buying two trucks for a start.

6. Source for those who want to sell Their Used Properties (Equipment, Furniture, and Gadgets et al)

One of the ways that you can source for those who are looking to sell stuff is by sending messages or going around to scout. You may consider phone calls, emails, and text messages. Notifying them beforehand about your intention to buy their properties when they sell.

7. Source for Buyers for the Goods You Have On Ground

After you have been able to get those who are willing to sell their properties, you will now need to source for those who are willing to buy. One of the ways to pull that off is through word of mouth, fliers, brochures, blogging, as well as text messages. Let them know what you have in store and be sure to include the incredible price you are offering them for.

The salvage business isn’t an over-saturated one, and as such you can be sure that a return on investment is guaranteed. However, you have to be careful so that you do not overprice your goods.