Thread by @ThePsychofLifes

Unsexy Business Idea That Can Make You Damn Rich

Part-III

=THREAD=

This business idea is for people who don’t wanna get tied to a certain work.

Although you need to be diligent & will have to struggle initially but all in all, is a good one.

Now, what’s the business?

It’s SCRAP RESELLING.

First of all, let’s start with the basics

1. What’s scrap?
Any material which has been discarded after use is called scrap.

2. What are different types of scraps?
- Metal scrap
- Paper scrap
- Electronic scrap
- Plastic scrap

There are many other too but these are prevalent.

3. What are the uses/application for scrap?
Recycling

4. Any licenses needed?
Yes, according to your region, you might have to fulfil some legal formalities to deal in scrap.

Let’s talk about METAL SCRAP first.

There are different types of metal & further different types of grade in them.

Metal is a product which gives you the most returns.

It is a wide industry, the consumption of scrap is humongous in the whole world.

Most basic type of metal is called Mild Steel (MS). Most of the things made of metal around you is made of MS.

Now there are many different types of alloy steels (HSS, HDS, HMS, D2, etc.) & these all have different price points but the demand for scrap for all of these is huge.

Other type of Metal scraps include:

- Aluminium (Rims/cutting/etc)
- Copper (Mulberry wire/blanks/etc)
- Automobile scrap
- Railway line scrap

All of these have different uses & applications.

All of these have huge demand.

Next is PAPER SCRAP.

There are many types of paper scrap such as:
- Newspaper scrap
- Cardboard scrap
- Normal paper scrap

Now this is mostly collected for recycling purposes but can also have some other purposes too.

Third one is electronic scrap. It is also known as e-waste scrap.

This includes:
- Motor scrap
- Computer scrap
- Mobile scrap
- Printer scrap
- Battery scrap
- Appliance scrap

Now most of these electronics are broken down & segmented.

Electronics include various metals such as copper, nickel, silver & even gold.

These all are segmented & sold separately. Plastic/metal body is also considered as scrap.

This type of business is usually conducted in third world countries as this is a dangerous yet manual job.

This business is highly profitable too.

The last one is plastic scrap.

Now we’re surrounded everywhere by plastic. From Single-use bottles to hard plastics.

All of these are recycled to again build new products since plastic can not be decomposed.

Working with plastic is also a dangerous work since it involves usage of highly-flammable & sometimes even toxic chemicals.

Since plastic is so prevalent, the scrap is also always hugely demanded.

Now, I have given you an overview of all these four industries. The technicalities are so much in all of these, it’s not possible for me to explain them here.

I myself function in metal & electronic scrap industry, hence know much about these industries.

The profit margin in scraps is measly 3-5% but the advantage here is that this is a business of volume.

It’s very easy to sell even 1000’s ton MS in one month but the difficult task is to procure it & organise the logistics.

Still, this is a very lucrative business.

Advantages:

1. Need to keep no stock.
2. High turnover.
3. Isn’t an aggressive biz.

Disadvantages:

1. Need high capital.
2. Can burn your money easily if you don’t place the right bet.
3. Highly labour dependent.

Comment below if you have any doubts regarding this business