Most of us have heard the saying, “One man’s trash is another man’s treasure.” But have you ever considered that the salvage business is actually a viable business model? Not only that, but salvage yards provide a valuable service to those looking to get rid of old cars, or clear out unused machinery or other clutter.
In fact, the items that can be salvaged and repurposed range as far and wide as a person’s imagination and effort are willing to go. A business can recycle metals, such as steel, copper, and iron. Or more common everyday goods, such as clothes, furniture and kitchenware. For example, businesses that make use of the salvage model include a wood flooring company that only uses salvaged timber. To a company that sells unclaimed airport luggage.
Here are 5 reasons you might want to consider salvaging as the backbone for your next great business idea.
- Salvage-based businesses have a low start-up cost.
With your typical business, sufficient start up capital is a must for keeping your store in stock and moving product. Insufficient capital is often listed as one of the top problems that small business owners face. Salvaging turns that notion on its head by relying on your wit to find product and barter or buy (at a low cost) the items that you will then repurpose and sell. Limited capital, therefore, is a problem that most salvage businesses are able to avoid. Your business might have a better chance of success compared to businesses that rely on traditional stock.
- Salvage-based businesses are eco-friendly.
Recycling is good for the environment because it keeps items out of landfills and oceans and puts them back to work. Your salvage business helps reduce the demand for production of products, which is a process that places a strain on our environment. Whether your business is fixing up old furniture and reselling it, or gathering metal scraps for recycling, it helps our climate.
- Salvage-based businesses are like one massive treasure hunt.
Were you that kid who loved treasure hunts? Did stories of hidden troves of gold delight you? Have you secretly wished to be a modern-day treasure hunter? Having a salvage business is one way to make your childhood dreams come true. Your “hunting grounds” are salvage yards, garage or estate sales, or sniffing out leads online. The landscape might be slightly different than those depicted in children’s picture books. But the feeling of exhilaration when finding that hidden treasure will be the same.
- Salvage-based businesses are consumer friendly.
For the most part, people expect to pay less for an item that was salvaged or repurposed than if they were to buy that same item brand new. But this is a good thing. With the economic swings of the past few years, consumers are on the lookout for well-priced deals. And are growing favorable to purchasing previously-owned cars, houses, and other second-hand items.
- Salvage-based businesses have a quick turnover of profit.
The salvage business model is based on gaining stock or products either for free or at a low price point. Therefore, the profit you stand to make is larger than other businesses based on the fact that your business expenses are low. How much return can you expect to make? That depends on how far you go with your refurbishing and repurposing. Do it right and your returns might end up being anywhere from 5 to 10 times the amount of your initial purchase point.
Getting a salvage business off the ground requires business acumen. Just like starting off any other business. But there is good news for you, the salvage business owner: You require less start-up to launch. And you can have the assurance of knowing that your business is doing the environment good and is in tune with the current economic mood of our times.