How to start a Junkyard Business?

how to start a junkyard  business plan template

Are you interested in starting your own Junkyard Business?

If you're interested in starting your own junkyard business, there are a few things you'll need to keep in mind. First and foremost, you'll need to obtain the proper permits and licenses from your local government. Once you've done that, you'll need to find a suitable piece of property to set up shop. And finally, you'll need to stock your junkyard with salvageable materials. With that said, let's take a closer look at each of these steps in greater detail.
1. Obtain the proper permits and licenses. Before you can open for business, you'll need to obtain the proper permits and licenses from your local government. Depending on where you live, this may require some paperwork and/or a small fee. But it's important to get everything in order before you start operating your junkyard.
2. Find a suitable piece of property. Of course, you'll need a place to set up shop. Ideally, you should look for a piece of property that's large enough to accommodate your future growth. And it should be located in an area that's easily accessible to potential customers. 
Business Plan
If you're thinking about starting a junkyard business, the first thing you need to do is create a business plan. This will help you determine the feasibility of your business, as well as map out a path to success. Here are some key components to include in your junkyard business plan:
1. Executive Summary Start your business plan with an executive summary, which is a brief overview of your business. Include the name and location of your junkyard, as well as your business model. Explain why you think starting a junkyard is a good business opportunity and what sets your junkyard apart from other businesses in the industry.
2. Company Description In this section, provide more details about your company, including its history, mission, and any unique selling points. This is also the section where you can list the key personnel involved in running the junkyard, such as the owners, managers, and employees.
3. Industry Analysis Research the junkyard industry to better understand the trends and challenges facing businesses in this sector. This information will help you make more informed decisions about your own junkyard business. 
Target Market
The first step to starting any business is identifying your target market. When it comes to a junkyard business, there are a few different target markets you could choose to focus on. One target market could be businesses that generate a lot of waste and need somewhere to dispose of it. This could include construction companies, manufacturers, or even restaurants. You would need to have a large enough space to store all the waste, and you would need to be able to handle hazardous materials safely. Another target market could be people who are looking to buy used parts for their cars or other projects. You would need to have a wide selection of parts, and you would need to be able to help customers find the right part for their needs. You would also need to be able to provide any information they need about the condition of the part and whether it would be suitable for their use. Yet another target market could be people who are looking to scrap their old cars or other vehicles. You would need to have the proper equipment to safely remove the parts from the vehicle, and you would need to be able to dispose of the vehicle properly. 
Business Model
There are a few different ways to start a junkyard business. The first way is to start from scratch. This involves buying a piece of land, building a facility, and acquiring the necessary permits and licenses. The second way is to purchase an existing junkyard. This option is usually less expensive and time-consuming than starting from scratch but it comes with its own set of challenges. The third way is to partner with another business, such as a scrap metal recycling facility, and offer junkyard services as an add-on. No matter which route you choose, there are some key things to keep in mind when starting a junkyard business. First, you need to ensure that you have the right location. The junkyard should be situated in an industrial area where there is room for growth. Second, you need to have a solid business plan in place. This plan should include your marketing strategy, financial projections, and operational procedures. Third, you need to obtain the necessary permits and licenses. Finally, you need to find reliable suppliers of scrap metal and other materials. With careful planning and execution, starting a junkyard business can be a very profitable venture..
Competitive Landscape
When you’re planning to start a junkyard business, it’s important to understand the competitive landscape. There are a few key things you need to know:
1. The size of the market: How many potential customers are there? How much junk do they generate?
2. The existing players: Who are the other businesses that are already in this space? What do they do well? What do they not do well?
3. The market trends: What is the general direction of the industry? Is it growing, shrinking, or staying the same?
4. Your competitive advantage: What is it that you can do better than anyone else? What will make customers choose you over the competition?
Once you have a good understanding of the competitive landscape, you can start to develop a business plan that will help you succeed.
Costs & Pricing Strategy
The cost of starting a junkyard business can vary greatly depending on the size and scope of the operation. initial investment could be as low as a few thousand dollars for a small, home-based business, or it could be in the millions for a large commercial operation. There are a number of factors to consider when developing a pricing strategy for a junkyard business, including the cost of goods sold, overhead costs, and desired profit margin. A junkyard business may also want to offer discounts for bulk purchases or for customers who bring in their own scrap metal.
Forming a Legal Entity
If you want to start a Junkyard business, you will need to form a legal entity. This will protect you from personal liability and help you raise money for your business. You can choose to form a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each type of entity has its own pros and cons, so you will need to choose the one that is right for your business. If you are the only owner of your business, a sole proprietorship may be the best option. This type of business is easy to set up and you will not have to deal with much paperwork. However, sole proprietorships offer no personal liability protection, which means that you could be held responsible for debts incurred by your business. Partnerships are similar to sole proprietorships in that they are easy to set up and offer no personal liability protection. If you decide to form a partnership, you will need to choose a business partner who you can trust and who has complementary skills. It is important to have a written partnership agreement that outlines each partner's roles and responsibilities. A limited liability company (LLC) offers personal liability protection and is a good option for a small group of founders. 
Opening a Business Bank Account
When you’re ready to start your Junkyard business, one of the first steps is to open a business bank account. This will help you keep your personal and business finances separate and will make it easier to track your expenses and income. To open a business bank account, you’ll need to have the following information and documents:
-Your business name and address
-Your Social Security number or Employer Identification Number (EIN)
-A list of the owners, officers, and directors of the company
-Articles of incorporation or a business license
-A voided check or deposit slip from the account you’ll be using for your business
Once you have all of the required information and documents, you can visit your local bank or credit union to open a business checking account.
Setting up Business Accounting
If you're starting a Junkyard business, one of the first things you need to do is set up your business accounting. This will ensure that you're keeping track of your finances and that you're complying with any financial regulations that apply to your business. Here's a quick guide to setting up your business accounting:
1. Choose an accounting software. There are many different accounting software packages available, so do some research to find one that will suit your needs.
2. Set up your chart of accounts. This is a list of all the categories of income and expenditure that you will track in your accounting system.
3. Set up your bank account. You will need a business bank account to manage your finances effectively.
4. Keep track of your income and expenditure. Make sure you keep accurate records of all money coming in and going out of your business.
5. Prepare and file your tax return. Once a year, you will need to file a tax return for your business. Make sure you keep on top of this so that you don't miss the deadline
Setting up Business Insurance
As a business owner, it is important to protect your company with the proper insurance. When setting up a Junkyard business, you will need to consider the following types of insurance:
-Product liability insurance: This will protect you in the event that a product you designed and printed causes injury or damage.
-Professional liability insurance: This will protect you in the event that a client suffers damages as a result of your work.
-Business property insurance: This will protect your equipment and premises in the event of damage or theft.
-Business interruption insurance: This will protect you in the event that your business has to stop operations due to a covered event.
-Employee dishonesty insurance: This will protect you in the event that an employee steals from your business.
Speak with an insurance agent to determine which policies are right for your business
Setting up a Business Website
If you want to start a Junkyard business, one of the first things you need to do is set up a website. This will be your online home base, where potential customers can learn more about your business and what you have to offer. There are a few key things you need to include on your website:
-An About page: This is where you can tell your story and give potential customers a sense of who you are and what you stand for.
-A portfolio: Showcase your best version on your website so that potential clients can see your work.
-A contact page: Make it easy for people to get in touch with you by including your email address and/or social media links.
-Pricing information: Let visitors know how much you charge for your services.
By having a well-designed website, you’ll be able to attract more customers and grow your Junkyard business
Obtaining the Necessary Permits
In order to start a junkyard business, you will need to obtain the necessary permits from your local government. This may include a business license, a zoning permit, and a permit to operate a junkyard. You will also need to have your property inspected by the local fire department and obtain liability insurance.
Setting up a Business Number or Appointment Setter
When you’re ready to start your Junkyard business, one of the first things you need to do is set up a business phone number or an appointment setter. You can use a service like Google Voice to set up a business phone number for your Junkyard business. Google Voice will give you a free business phone number that you can use to make and receive calls. Once you have a business phone number, you can start taking calls from potential customers. When you get a call, be sure to take down the customer’s name, contact information, and what they need. Once you have this information, you can give the customer a call back to discuss the project in more detail and give them a quote.
Assuming you have the space and the proper permits, starting a junkyard business is relatively simple. The key is to find a niche and market your business accordingly. With a little hard work and some creative thinking, you can start making money from your junkyard in no time.

Why write a business plan?

A business plan is a critical tool for businesses and startups for a number of reasons:
  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content


Many people struggle with drafting a business plan and it is necessary to ensure all important sections are present in a business plan:
  1. Executive Summary
  2. Company Overview
  3. Industry Analysis
  4. Consumer Analysis
  5. Competitor Analysis & Advantages
  6. Marketing Strategies & Plan
  7. Plan of Action
  8. Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect Junkyard business plan, fill out the form below and download our Junkyard business plan template. The template is a word document that can be edited to include information about your Junkyard business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning


With the growth of your business, your initial goals and plan is bound to change. To ensure the continued growth and success of your business, it is necessary to periodically update your business plan. Your business plan will convert to a business growth plan with versions that are updated every quarter/year. Avvale Consulting recommends that you update your business plan every few months and practice this as a process. Your business is also more likely to grow if you access your performance regularly against your business plans and reassess targets for business growth plans.


Want a Bespoke Business Plan for your Junkyard Business?

Our Expertise


Avvale Consulting has extensive experience working with companies in many sectors including the Junkyard industry. You can avail a free 30-minute business consultation to ask any questions you have about starting your Junkyard business. We would also be happy to create a bespoke Junkyard business plan for your Junkyard business including a 5-year financial forecast to ensure the success of your Junkyard business and raise capital from investors to start your Junkyard business. This will include high-value consulting hours with our consultants and multiple value-added products such as investor lists and Angel Investor introductions.


About Us


Avvale Consulting is a leading startup business consulting firm based in London, United Kingdom. Our consultants have years of experience working with startups and have worked with over 300 startups from all around the world. Our team has thousands of business plans, pitch decks and other investment documents for startups leading to over $100 Million raised from various sources. Our business plan templates are the combination of years of startup fundraising and operational experience and can be easily completed by a business owner regardless of their business stage or expertise. So, whether you are a budding entrepreneur or a veteran businessman, download our business plan template and get started on your business growth journey today.