Scrap metal collection point business plan
Many profitable types of entrepreneurship literally roll on the road, you just need to overcome laziness in order to raise this idea and implement it. These include the scrap metal business, which, with the most modest investments and competent organization, can become an excellent launching pad for the formation of large holdings engaged in metal processing. The business plan of the scrap metal collection point is the necessary document that will help to present the real difficulties on the way to the formation of this type of activity and to appreciate its prospects at its true worth.
General concept of the project
Opening a metal collection point is a great option for aspiring entrepreneurs. It will not require significant start-up investments, and such an enterprise can be profitable all year round, because its work is not associated with the influence of seasonal factors.
The considered business plan of the scrap metal receiving point with calculations aims to create an enterprise that will specialize in receiving scrap metal from the population with its subsequent sending to wholesale depots for processing.
Main stages of project implementation:
The life cycle of the project is 4 years, all calculations were made in accordance with the market conditions prevailing in this area of business for 2021. The source of financing for the project is the founder's own funds.
The development of the domestic scrap metal market over the past decade has been significantly influenced by the opening of export borders. Thanks to this, our country has become a world leader in the supply of ferrous scrap, ahead of even the United States.
The main factors determining the development of the market today are:
- Growth of metallurgical production in the Asian region.
- Reducing Russia's own demand for scrap metal.
- Rapid growth of prices for scrap metal in the world market.
- High solvency of scrap metal consumers.
Metalworking is a range of services that includes the production of metal parts for various industries and technology. Therefore, this direction of entrepreneurship never lacks customers. In this regard, the task of how to open a metalworking business from scratch will mainly consist in the competent organization of a new enterprise.
Metalworking: Business Basics
Finding out the main features and directions of the chosen area of business will be the main task of a novice entrepreneur. If the founder of a metalworking enterprise does not have his own experience in this type of activity, it is necessary to study all existing methods and their advantages and analyze the proposals of existing competing companies.
Today there are two main groups of metal processing methods: mechanical and chemical. Mechanical methods are traditionally considered to be the preferred methods, since methods representing the use of chemical technologies require more special permits, equipment for cleaning ventilation ducts and organizing waste disposal. Therefore, it would be more expedient for a start-up company to specialize in mechanical processing methods, which include forging, stamping and processing using special machines. At the first stage, you can focus on one of these areas, further expanding activities and adding new types of services.
How to start a metalworking business from scratch: basic steps
Creating a business plan will be a necessary step in creating a business of any type. In it, you need to plan both the main stages of opening an enterprise and its further activities, calculate the initial investment and regular investments, and also correlate the data obtained with the projected profit. On the basis of such calculations, the profitability of the future company is determined and it is predicted in what time frame it should recoup the costs and begin to bring stable profits. Depending on the region, specifics and scope of work to be performed by the enterprise, profitability indicators may differ. But on average, experienced businessmen cite a figure of about 20%, which, taking into account the considerable investments in opening a company, implies a payback period of 2 years.
A premise suitable for metalworking will become one of the important items of expenditure. If the entrepreneur does not have a suitable workshop, it is necessary to buy or rent a 30 sq. m and more. The premises for the workshop must comply with fire and sanitary standards, in support of which it is necessary to obtain appropriate permits from the controlling services.
In addition to the workshop itself, it is also necessary to equip office and warehouse premises. If at the first stage of the company's work it is possible to do without an office, then with its expansion it will be necessary to hire employees of the administrative department who will establish contacts with potential customers, engage in signing contracts with suppliers of equipment and consumables, jobs are needed both for the head and his deputy. In the warehouse, under which a part of the production workshop can be allocated, there should be already finished products, as well as raw materials and consumables.
An advertising campaign for a metalworking company should be designed taking into account the fact that the target audience of this industry is quite limited. As a rule, the main customers and buyers of products will be firms of various levels, less often - individuals. Taking this feature into account, you should choose suitable advertising methods.
The most important thing for the promotion of an enterprise will be the creation of your own company website. This resource should be informative and user-friendly, providing all the information that may be of interest to potential customers; for this, its development and maintenance is entrusted to professionals. It is advisable that the official website of the company be optimized for the main search queries, which will enable future buyers to see it in the first lines of search engines.
Other types of advertising on the Internet will also be relevant, as well as placement of information in the media and thematic printed publications. Outdoor advertising, posting advertisements and distributing leaflets and business cards of an enterprise can become auxiliary methods.
The number and specifics of equipment that must be purchased before starting a metalworking business will depend on the chosen industries. So, just starting work, the company will most likely be engaged in the simplest and less costly types of work. Therefore, first of all, you need to purchase high-quality locksmith tools and several machine tools, first of all - equipment for cutting metal. In the first stage, it is even possible to purchase used machines, which will significantly reduce the investment.
koha1 "over a year ago
Developing a plan for opening your own turning workshop
It was 2021, the month of October, when I left the enterprise entrance, holding in my hand a work book and my last, if I may say so, "forced" wages. It should be noted that I was already approximately aware of what I would do, what to buy, where and what to do, so I need to start the story from this very moment: planning. Let it be at home in a notebook, but still, any business needs to be well thought out so as not to go broke in the first six months and not become a laughing stock for others and for oneself. For the readers, I will compose a short list, which, I hope, will help in the entrepreneur's difficult endeavor, namely, the organization of metal turning. So my list is:
1) CAPITAL. From the point of view of entrepreneurship, I didn't need much money. I earned them, saved part of my salary on a deposit card. This amount can be postponed for 3 years for an ordinary hard worker of my profession in our country. In the Russian Federation, since wages in this country are much higher, such a "capital" can be made in 1, 5 years. I managed to collect it in 1 year and 6 months, because I was already a highly qualified specialist, and my salary was appropriate. Let's take the initial amount equal to UAH 100,000. (300,000 rubles).
2) LOCATION. How is the turning department that I decided to open differs from many workshops and enterprises in my city? Yes, because I thought of placing it on the market. What is the benefit? At first I was asked exactly such questions, but from the very first day I had no end of customers. Absolutely winning place, no advertising required. There was no competition as such.
3) CLEARANCE. Since I work in Ukraine, I will not talk about the registration of a private enterprise in this country. I will only say that it is almost identical to an individual entrepreneur in the Russian Federation, only it costs a little more and the registration process takes place in different government agencies. And taxes at the time of registration were higher. If you are thinking of working on your own, it will be easier and cheaper. This is what I did at the beginning, but you can hire a person.
4) EQUIPMENT. The most important thing in this business is the lathe. Actually, he is our “breadwinner”. Naturally, the higher the quality of the machine and the newer, the wider the range of products can be made. For my purposes, a desktop machine came up, a new one purchased from a large construction hypermarket. He then made up the lion's share of the costs. In 2021, the machine cost UAH 15,000. (45,000 rubles). You can make small details on it, but we don't need large ones. The advantage of bench-top machines is the supply voltage. It is 230 Volts, which, in fact, satisfies most of the conditions provided in the markets of our countries. For example, industrial equipment is powered by 380 volts, which are not available everywhere, so be careful. Also, cutters for metal must go to the machine. Another necessary equipment is a grinding machine and a stone for it. At the time of the purchase of the machine, its cost was UAH 3,000. (about 9,000 rubles).
5) CLIENT. As mentioned above, since the first day, I have had no end of clients. Who are these people? These are ordinary citizens who have something broken. These are also small entrepreneurs who prefer to carry out minor repairs, just the same in institutions like mine. Why in mine? Yes, because large private workshops set a very high price for a single batch, and factories do not at all undertake to make such orders. So the people are left to throw out the broken product, not being able to replace the part in it.
Costs of setting up a business for turning services
So, roughly figured out that this case is more than worthy of attention. Now let's see my expenses for the first six months:
- equipment: lathe - 45,000 rubles, grinder - 9,000 rubles, cutters - 3,000 rubles, whetstone - 300 rubles. I bought a good tee about all this - 900 rubles. In addition: 58,200 rubles - registration of the enterprise at the prices of the country where I live, amounted to about 6,000 rubles, together with the seal. It is advisable to print in the same way, since I had to cooperate more than once with customers who find it convenient to place an order officially. Total: 6,000 rubles.
Manufacturing and selling metal products has always been a profitable business. The business plan for the production and sale of rolled metal products offered to your attention contains up-to-date calculations of costs and schedules for setting up an enterprise that will deal with rolled metal products. Considering that many types of products will be purchased from foreign manufacturers, their cost in the plan is indicated in US dollars. In addition, this approach allows us to eliminate errors caused by fluctuations in ruble inflation, which helps to increase the reliability of calculations and forecasting financial flows.
Currently, the demand for metal products in the world market is growing. This is also typical for Russia, because the metal products that have been put into operation and have been in operation since the 90s of the last century need to be urgently replaced. The country requires a major overhaul or complete replacement of the design of energy systems, almost all pipelines in industry, technological equipment of many enterprises. The cost of imported metal products is 3-4 times more expensive than domestic products, so the creation of an enterprise for the sale of metal products from Russian manufacturers will be a significant contribution to the implementation of the import substitution program.
The state is currently stimulating the development of metal trading infrastructure. This is due to the high cost of equipment from foreign suppliers. In addition, the goal is to overcome the bias associated with the purchase of expensive equipment made from raw materials from foreign manufacturers, which is purchased from us at significantly lower prices than on their own markets.
The main suppliers of such equipment to the Russian market are:
- Germany - 45%.
- Austria - 22%.
- USA - 16%.
- Italy - 12%.
As the analysis shows, at present in Russia the most successful and profitable in the market are sales of metal by small-scale companies that were once created on the basis of wholesale depots, trusts and other enterprises that lost their positions, but retained their fixed assets and technological equipment are in more or less suitable condition.
Some of them focus their activities on providing metal products to specific consumers, others are engaged in general supplies.
The created enterprise will be engaged in the supply of rolled metal products for enterprises and firms engaged in the installation and repair of technological equipment, the production of technological equipment. This industry is experiencing the greatest demand for these products.
This business plan for the production and sale of rolled metal with calculations was developed in order to substantiate the economic efficiency of an enterprise for the sale of metal products and the prospects for its development to a manufacturing company. The metal base is created within the framework of the legal form of LLC (limited liability company).
The main goal of the LLC is to meet consumer demand for metal products, participate in the formation of the industry market and generate profit in the interests of the LLC members.
Relevance of starting a business
Currently, large, medium and small businesses are developing at a rapid pace. The most widespread and in demand are the service sector, trade and farming. Separately, it is necessary to highlight the service sector. The current idea is the organization of metal processing services. Today metal is one of the most common materials. It is widely used in construction and industry. A very promising business will be to open its own workshop for metal processing. It should be noted that this idea will require some investment.
Metalworking is a rather broad concept. It can be based on industrial processes or decorative. In any case, it will take a lot of effort to organize such a business. Metal parts and products are in great demand, making them, you can take the goods to various private organizations or shops. The advantage of such a business is that the sale of the goods will not be difficult. Let's take a closer look at the business plan. Metalworking: how registration is carried out, collecting documentation, where to buy equipment - these are the issues that he should take into account.
Registration and collection of required papers
In this case, you need to pay a state fee. The first registration option is the simplest and will save you time and money. But he has one big drawback: in this case, it will not be possible to carry out transactions with legal entities, that is, various companies and organizations, only with individuals. In addition, it will be necessary to collect the necessary documents: permission of the territorial management of property, the conclusion of the Rospotrebnadzor bodies on the right to carry out this activity, permission of the fire inspection. If the premises are rented, the latter is the responsibility of the landlord.
Equipment for artistic cold forging and profile bending
Metalworking refers to a greater extent to medium or small businesses. The business plan implies artistic forging of metal and bending of various profiles, pipe rolling.
Art forging is used mainly in private construction in the manufacture of window bars, furniture, fences, fences.
This uses the cold forging method. Such metalworking will require the purchase of equipment with which it will be possible to make coins, arcs, lances, arches, rings and other small decorative items. Its advantage is that it is very compact (takes up little space) and is more convenient to use.
Profitability, main expenses and income
The business plan also includes the calculation of profit. It will depend on the volume of production and sales. The net profit is calculated by deducting from the total income the costs of paying for utilities, paying salaries to staff, and purchasing raw materials. The profitability of this business is average - 15-20%, the payback depends on the volume of production and sales. On average, it is 2-3 years. Thus, metalworking is a rather promising type of small and medium-sized business, the demand for whose products is growing.