There is money to be made in scrap metal; in fact, it is relatively easy to begin your own business, and could take significantly less outlay than many other start-up opportunities; you simply need a vehicle to collect scrap metal, an area in which metal can be stored and recycled, and the wherewithal to market your business, research the industry, and locate processors to which you can sell your scrap metal. Starting a scrap metal business will take a lot of research – do you know the difference between a ferrous and non-ferrous metal, for example, or have the resources to be able to check the value of different metals on a daily basis? While prices fluctuate on a regular basis, metals such as copper, aluminium, and brass (categorised as non-ferrous) are far more valuable than the likes of steel. The scrap metal market is one you must keep abreast of if you’re hoping to make long-term returns on your investments, and while that may take time, those returns can be well worth holding out for.
Private equity investments in the scrap metal trade are rapidly increasing, as are investments in the industrial and construction sectors; there is money to be made in the world of building and recycling, it seems. While you may fancy the idea of being your own boss, and managing a scrap metal business of your very own, it can sometimes be a better, and more viable, idea to invest in a start-up or established company. Investing provides the opportunity for making returns without so much of the legwork, though it is imperative that you know your stuff before beginning; the value of various metal, the state of the market from day to day, and even local crime rates and theft of metal can have a huge impact upon business, as well as your likely return. If you can bear the risk, investing in new businesses can often be one of the best uses of your money as you are likely to make more back on a relatively small initial investment.
Investing in scrap metal: M1 Group’s success story
Founded over forty years ago by the Mikati brothers, M1 Group, which is one of the Middle East’s biggest investment holdings firms, has taken a number of investment risks to get where it is today; from commercial air travel and real estate to venture capital and the energy industry, M1 Group CEO Azmi Mikati and his father Taha, who still controls many of the company’s strategic decisions, have a lot of experience across a diverse range of businesses. It stands to reason, having invested so heavily in airline travel and commercial jets, that M1 Group knows a thing or two about the scrap metal industry; after all, few industries, aside from construction, utilise quite so much metal. The company’s continued success and growing investment portfolio is a great example of why scrap metal is a good investment.
If you’re looking to start a new business, or even invest in a start-up or existing venture, be sure to conduct your own research, make your own valuations, and always stay one step ahead of the market. Only then can long-term success be achieved.