1. Develop a Business Plan: Create an outline to determine the viability of your junkyard business, including start-up costs, expected revenue and marketing strategies.
2. Identify Your Target Market: Determine who will most likely be looking to buy used auto parts or scrap metal.
3. Obtain Licensing and Permits: Check with your local city or county government to determine what permits and licensure you need to operate a junkyard business in your area.
4. Secure Property and Equipment: Acquire property, including junked vehicles, storage containers, tools and other necessary equipment for running the business.
5. Develop a Pricing Strategy: Create an accurate pricing system for selling parts and scrap metal that is competitive in your area.
6. Establish Supplier Relationships: Identify suppliers who can provide you with the parts needed to fill customer orders.
7. Consider Promotion Strategies: To spread the word about your business, think about investing in online and print advertising, as well as local events.
8. Hire Employees: Depending on the size of your business, you may need to recruit workers to help with day-to-day operations such as sales and customer service.
9. Set Up an Accounting System: Create a financial tracking system that allows you to keep accurate records of income and expenses.
10. Stay Informed: To stay abreast of industry trends, make sure to read professional publications and attend trade shows related to the junkyard business.