A junk shop business is a type of business that buys and sells used or scrap materials. If you are willing to work hard and be patient, you can start a successful junk shop business in the Philippines. If managed well, it can be very profitable for both garbage collectors and junk shop owners. Furthermore, you can also help the environment by recycling materials that would otherwise end up in landfills.
If you’re considering starting a junk shop business in the Philippines, we have listed a few steps to get you started.
1. Do your research
Before you start your business, it is important to do your research and learn as much as you can about the junk shop industry. This includes learning about the different types of junk that you can buy and sell, the different markets for junk, and the competition in your area. Create a business plan to streamline your ideas and future plans.
2. Prepare your capital
Just like any business, you need funding or capital to finance it. According to the Department of Trade and Industry (DTI), the estimated cost of starting a junk shop is around P100,000. Several factors will also affect your total cost, such as whether the space will be owned or rented. It will also matter if your business will be run by a small team or by just one person. When estimating, also include the business licenses and registrations, security and rental deposits, operating equipment, vehicles, renovations, purchasing cash, and more.
3. Find a location
In finding a suitable location, it must be an area spacious enough to store and sort your junk goods. Both your suppliers and your customers must find your location convenient. You can either rent or lease a space or use your own property.
4. Secure the necessary permits and licenses
To make your business legit, you need to acquire several business permits and licenses, such as:
- Register with the Department of Trade and Industry (DTI)
- Bureau of Internal Revenue (BIR) registration
- Mayor’s Permit
- Barangay clearance
- Sanitary permit
- Environmental clearance certificate
During the covid-19 pandemic, there were strict regulations on the operation of junk shops. So, it’s better to check with your local authorities for the latest updates and guidelines.
5. Purchase the necessary equipment
You need to purchase the necessary equipment for your junk shop. Some of the items you’ll need are:
- Weighing scale
- Metal push-cart
- Acetylene torch and gas tank,
- Pulley, and some tools
- A vehicle for transporting your junk item
6. Create your network of suppliers and clients
You need to build good relationships with scrap collectors and also negotiate with recycling agents for a reasonable price. It’s better if you learn about the different deals available, so ask around and do some research.
7. Set up your shop
When you have everything set up, you can start operating your shop. Remember to be flexible when managing your business, especially on pricing. Junk prices can vary depending on the type of junk, its quality, and the current market conditions.
Running a junk shop business can be a rewarding experience. However, as with any business, you must do research to determine whether it is feasible in your area, the competitors, your potential profit margin, and many other factors. Good luck!
- IT Engineer Quits Job To Sell Siomai, Now Earns P5,000 A Day - June 30, 2023
- From Chocolate Cakes To Noodles: Maricar Reyes’ Food Businesses - June 25, 2023
- How To Be A Cebuana Lhuillier Authorized Agent - June 17, 2023