One cannot immediately see the profitability of this business but the fact that junkshops continue to exist is proof that "there's cash in trash." We can say that this enterprise which is actually a simple buy and sell business is here to stay.
For a start-up, I would suggest focus on two or three scrap materials (ex. scrap metals, scrap paper, scrap plastic) because if you are going to take all junk products, it is hard for a start-up to secure volume stocks especially if you have a limited space, plus you'll be having a hard time getting a good price. But if space is not a problem and you have established contacts, then you can expand to a variety of scrap materials.
How to start:
- Weighing scale - is the most important tool since we are buying all the scrap materials per kilo, except for glass bottles, non-working batteries and some e-wastes, which are paid by piece.
- Kariton, ecobike/bicycle with sidecar - you need these to easily collect/buy scrap from house to house.
- Truck - you will be needing this if you plan to buy scrap in bulk or from nearby towns/provinces.
- Open Space - this is where you dump all scrap materials, segregate them if necessary.
- Recycling Centers/Recyclers - it is of vital importance to get a list of recycling centers/recyclers since they will be the one to buy your junk. You could also sell your mixed scrap at waste markets.