Starting A Junk Shop Business

Junk shops aren’t exactly top of mind when thinking of what type of business to put up. True, it entails getting one’s hands dirty in the most literal sense possible, but dirt and scrap can actually turn a profit. Not convinced? How frequently do people dispose of old items at home? Fact is, people dispose of a pretty big amount of junk on a daily basis. Compound that with the disposal of large items like old vehicles and even buildings up for demolition. It’s a business that has a good market and enjoys stable growth. Turning trash into cash—now that is a good motivation.

For those interested in putting up a junk shop, here’s a round-up of the basics:

Start-up requirements. As with other businesses, you have to register your junk shop at the DTI (sole proprietorship) or SEC (for partnerships and corporations) for the business name registration, at the BIR for taxation purposes, get barangay certifications, and from your city or municipal LGUs for the license to operate.

The Business Permits and Licensing Office requires junk shop businesses to sign an agreement that they would not cause complaints from the neighborhood (smell, noise, clutter); not obstruct the natural flow of traffic in the area; that they practice good sanitation; and that the owner must have obtained a location or site clearance order from the local planning office, that in turn complies with the planning office’s land use plan or with the zoning ordinance.

Trading procedures. As a junk shop and scrap trading business owner, you have to know where and how to source for recyclables. First, you have to decide what materials you would be sourcing— some choose to source only metal, paper or bottles, while some have a bit of everything.

After deciding on the materials you want to source, find your local scavengers and either recruit them to collect the materials you need and pay them for their services, or just inform them that you would want to buy from them certain materials they’ve collected.

After gathering all the materials you want for your business, segregate them properly. Organize them well and have them ready for trading, as well as to be able to accommodate more materials in your place of business. You have to maintain cleanliness and order in your place of business, even if you are working with trash.

Find a recycling center to sell your materials; sell to more than one. Some recycling centers would only buy metal, while some only paper. Once you have found and selected from them, agree on the payment terms, schedule of pick-up or delivery of your materials to their recycling center, and the volume of materials you have to deliver to them.

To know more about this topic, attend BusinessCoach, Inc.’s seminar entitled “How to Start a Junk Shop and Scrap Trading Business.” Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.

Click here to view details of the seminar: Starting a Junk Shop and Scrap Trading Business »

*Originally published by the Manila Bulletin. C-4, Sunday, December 7, 2014. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.