How to Start a Scrap Business in 2023 | How to do Junk Business - New Business Ideas 2023

When any item in your house gets damaged, then you throw it away which is obviously named junk, but do you know that you would have thrown away the items in your house considering them useless and damaged? Yes, the same thing is not less than any gold for some people. Yes, you heard it right, the junk taken out of your house is a source of income for many people, and not only income, but many people have also gone so far by doing the business of junk that you cannot even think about.

How to Start a Scrap Business in 2023 | How to do Junk Business - New Business Ideas 2023

Your assumption that the majority of people can only sustain themselves through junk food is incorrect because selling junk is today thought to be a very lucrative industry. If we tell you that many people have made millions of dollars through the junk business, you would not believe us, but this is really true. Today, the scrap industry is proving to be successful, and many educated people are now considering entering this field.

What is the Business of Junk?

An item that gets damaged due to wear and tear or stops functioning due to any other reason can be called scrap. Once junk, the item cannot come back in the same quality again! When you bring something to be used in your home and it gets damaged after running for a few days and when you take it for repair, the mechanic says that the thing cannot be repaired.

If that thing of yours gets completely spoiled then it is called junk only! In such a situation, the scrap people collect the spoiled items in your house and the items thrown by you and sell them by taking them to the market. This business or business is called the business of scrap or the business of scrap.

How to do the business of scrap?

There are many people who work in the junk industry; they visit your home and collect trash.

These individuals gather these scraps and sell them at the scrap shop, after which the owner of a major scrap shop gathers their scraps in bulk, loads them into a truck, and sells them to a larger scrap shop or to a recycling company.

In this way, you profit from the sale of the junk from your house, and the person who removes the junk from your house benefits from its sale.

And then when the trader with a big junk shop sells that junk to a company or to a businessman doing Kabaddi business bigger than himself, then he earns.

In this way, everyone employed in this company, from the lowest to the top, continues to make a living.

What is bought as scrap?

It is not that every item taken out of your house should be used for scrap. Only some items taken out of your house are useful for them, which are as follows.

Junk in the form of junk is junk from your house such as waste paper, iron, oil tin, cardboard, cooler, fan, bad laptop, bad computer, bad smartphone, bad tablet, aluminum, copper, electronic things, furniture, buys old bad motors, strong iron of trucks and buses, etc.

Apart from this, according to the demand, he also buys much other junk from your house, but let us tell you that, in the form of junk, only things made of iron are in demand, because by recycling them, companies make new products again. Are.

Things needed to do the business of scrap -:

You can establish a Kabaddi business on a modest scale if you don’t have a lot of money to invest.

As there are many scrap dealers in India that operate on a small scale, we can assure you that you won’t need any form of license to begin a small-scale scrap business.

On the other hand, if you want to operate a large-scale junk-buying business, you will need certain things, such as a store, truck, GST number, etc.

Investment in Scrap Business -:

The amount of investment you will have to start the scrap business depends on the level of your business. To do it on a large scale, you will have to invest more, and to do it on a small scale, you will have to invest a little less. Apart from this, your investment also depends on whether the shop or land is your own or you will take it on rent. Still, if seen as a general figure, to start the business of junk, you have to invest in the following things -:

For the shop -: If the shop is your own, then you will not have to pay any monthly rent for the same, if you take the shop on rent, then you will have to pay the monthly rent of around ₹ 20,000 to ₹ 30,000. This freight is high because you need a big shop in the scrap business.

Another cost -: You may have to spend two to ₹ 3,00,000 as another cost. This includes other expenses including shop furniture, electricity expenses, water bill expenses, transportation expenses, petrol expenses of vehicles, electronic weighing scales, etc.

Total Investment -: In this way, your total investment in starting a junk shop will be around 5,00,000.

Land for scrap business -:

According to the level of scrap business, you also need land. For a large-scale scrap business, you will need a shop of 500 square feet to 600 square feet, while for a small scale, you will need a shop of 200 square feet to 300 square feet. Talking about Godown, for a large-scale scrap business, you will need a warehouse ranging from 700 square feet to 1000 square feet because, in a large-scale business, you will need more space to store the scrap, the same small As a godown for level business, you will need a godown ranging from 300 square feet to 600 square feet.

For the business of scrap, you should choose such a location, where there is a paved road, a good transportation facility, 24 hours electricity available, good water facility. Apart from this, how many junk shops are already there and what kind of products they buy or sell, as well as at what price they take the junk. If possible, you should start a business of scrap next to the main road, so that your shop and your business can be seen by the people.

Scrap Business Registration and License -:

When you have the funds to invest and all your preparations are done, then you have to get a license for the scrap business and get your scrap business registered. After all the legal process is completed, you can start your junk business.

Documents required for scrap business -:

Identity Card -: Aadhaar Card, Voter Card, PAN Card
Address Proof -: Ration Card, Light Bill
Bank account with passbook
Your mobile number
GST Registration Number
4 passport-size photographs
Your Email ID
NOC etc.

Recycling Center Information -:

Whatever junk you buy, you also have to sell it after it has accumulated in large quantities. That’s why you should also get information that where you want to start your business, whether there is no junk recycling center nearby or not if there is no junk recycling center in your surrounding area, then You must find out what is the distance of the junk recycling center from the place of your business. By doing this you will get an idea of the transportation cost.

Vehicles for scrap transportation -:

You will also need a four-wheeler to bring the purchased scrap to your shop and keep it in the godown. That’s why you should also manage 1-2 four-wheelers, you will need a truck to sell the collected junk to the recycling center or to a big scrap dealer. If you have the budget, you can buy your own truck second hand or you can also hire trucks from the market.

Advantages in the business of scrap -:

Even though you will have to invest a lot in the junk business, you will also get a lot of benefits from it. With this, you can earn lakhs and crores. Because this is a very running business.

Risk in scrap business -:

Talking about the risk involved in this business, let us tell you that the risk in this business is less. Because this business is a business that runs all the time. Junk gets accumulated in people’s homes anytime, so you are less at risk. This business earns a lot during Diwali.

In this way, even by starting a small business, you can earn lakhs. And can become rich.

FAQs -:

Q. What is the business of junk?

Ans -: The business of junk is called buying old household items and selling them elsewhere.

Q. What do people buy in junk?

Ans -: Waste paper, iron, oil tin, cardboard, cooler, fan, etc, and many more things.

Q. What are the costs involved in the business of scrap?

Ans -: Around 5 lakh rupees including everything.

Q. How much profit is made from the business of scrap?

Ans -: You can earn lakhs from this.

Q. What license is required in the business of scrap?

Ans -: Yes, if you can start on a large scale, then it is definitely required.

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How to Start a Scrap Business in 2023 | How to do Junk Business – New Business Ideas 2023

How to Start a Scrap Business in 2023? – Kabad ka Business Kaise Kare