a

How to Start a Salvage Yard Business | Including Free Salvage Yard Business Plan Template

[Music]

how to start a salvage yard business

this video is designed to help you

determine if your salvage yard business

idea is feasible to identify questions

and problems you will face in converting

your idea into reality and to prepare

for starting your salvage yard business

the video features all the essential

aspects you must consider before you

start your salvage yard business this

will allow you to predict problems

before they happen and keep you from

losing your shirt on dog business ideas

at the end of the video there are three

valuable free gifts waiting for you a

token of appreciation for watching this

video

operating a successful salvage yard

business will depend on the following

four conventions

1 a practical plan with a solid

foundation to dedication and willingness

to sacrifice to reach your goal 3

technical skills 4 basic knowledge of

management finance record-keeping and

market analysis as a new owner you will

need to master these skills and

techniques if your business is to be

successful identify your reasons as a

first and often overlooked step ask

yourself why you want to own your own

business check the reasons that apply to

you 1 freedom from the nine-to-five

daily work routine to being your own

boss 3 doing what you want when you want

to do it for improving your standard of

living 5 boredom with your present job 6

having a product or service for which

you feel there as a demand some reasons

are better than others

none are wrong however be aware that

there are trade-offs for example you can

escape the nine-to-five daily routine

but you may replace it with a 6 a.m. to

8 p.m. routine preliminary analysis

major flaws yes response to questions

such as the following would indicate

that your business idea has little

chance for success 1 are there any

causes such as restrictions monopolies

shortages that make any of the required

factors of operation unavailable such as

unreasonable cost or scarce skills to

our capital requirements for entry or

continuing operations excessive 3 is

adequate financing hard to obtain 4 are

there factors that prevent effective

marketing a self-analysis starting a

business requires certain personal

characteristics this portion of the

video deals with you the individual this

next group of questions though brief is

vitally important to the success of your

plan it covers the physical emotional

and financial strains you will encounter

in starting a new business are you aware

that running your own business may

require working 12 to 16 hours a day six

days a week and maybe even Sundays and

holidays do you have the physical

stamina to handle the workload and

schedule do you have the emotional

strength to withstand the strain are you

prepared if needed to temporarily lower

your standard of living until your

business is firmly established is your

family prepared to go along with the

strains they too must bear are you

prepared to lose your savings in case

your plan fails finding a niche small

businesses range in size from a

manufacturer with many employees and

millions of dollars in equipment to the

loan window washer with a bucket and a

sponge

obviously the knowledge and skills

required for these two extremes are far

apart but for success they have one

thing in common

each has found a business niche and is

filling it the most critical problems

you will face in your early planning

will be to find your niche and determine

the feasibility of your idea get into

the right business at the right time is

very good advice but following that

advice may be difficult

many entrepreneurs plunge into a

business venture so blinded by the dream

that they fail to thoroughly evaluate

its potential is your business idea

feasible before you invest time effort

and money the following exercise will

help you separate sound ideas from those

bearing a high potential for failure

identify and briefly describe the

business you plan to start identify the

product or service you plan to sell

answering yes to any of the following

three questions means you are on the

right track a negative answer to all of

them means the road ahead could be rough

one does your product or service satisfy

an unfilled need 2 will your product or

service serve an existing market in

which demand exceeds supply 3 will your

product or service be competitive based

on its quality selection price or

location market analysis for a small

business to be successful the owner must

know the market to learn the market you

must analyze it a process that takes

time and effort you don't have to be a

trained statistician to analyze the

marketplace nor does the analysis have

to be costly

analyzing the market as a way to gather

facts about potential customers and to

determine the demand for your product or

service the more information you gather

the greater your chances of capturing a

segment of the market know the market

before investing your time and money in

any business venture the following

questions will help you collect the

information necessary to analyze your

market and determine if your product or

service will sell this brief exercise

will give you a good idea of the kind of

market planning you need to do an answer

of no to any of the questions indicates

a weakness in your plan so do your

research until you can answer each

question with that yes one do you know

who your customers will be - do you

understand their needs and desires 3 do

you know where they live 4 will you

offering the kind of products or

services that they will buy five will

your prices be competitive in quality

and value 6 will your promotional

program be effective 7 do you understand

how your business compares with your

competitors 8 will your business be

conveniently located for the people you

plan to serve 9 will there be adequate

parking facilities for the people you

plan to serve planning your startup so

far this video has helped you identify

questions and problems you will face

converting your idea into reality and

determining if your idea is feasible

through self analysis you have learned

of your personal qualifications and

deficiencies and through market analysis

you have learned if there is a demand

for your product or service the

following questions are grouped

according to function they are designed

to help you prepare for opening day name

and legal structure 1 have you chosen a

name for your business - have you chosen

to operate as sole proprietorship

partnership or corporation business

premises and location 1 have you found a

suitable building in a location

convenient for your customers - can the

building be modified for your needs at a

reasonable cost 3 will you have a lawyer

check the zoning regulations & Lace

merchandize have you decided what items

you will sell or produce or what

services you will provide have you made

a merchandise plan based upon estimated

sales to determine the amount of

inventory you will need to control

purchases have you found reliable

suppliers who will assist you in the

startup have you compared the prices

quality and credit terms of suppliers

business records are you prepared to

maintain complete records of sales

income and expenses accounts payable and

receivables have you determined how to

handle payroll records tax reports and

payments do you know what financial

report

should be prepared and how to prepare

them finances a large number of small

businesses fail each year there are a

number of reasons for these failures but

one of the main reasons as insufficient

funds to many entrepreneurs try to start

and operate a business without

sufficient capital money to avoid this

dilemma you can review your situation by

analyzing the following three questions

1 how much money do you have - how much

money will you need to start your

business 3 how much money will you need

to stay in business in order to answer

the second question how much money will

you need to start your business you need

to prepare an estimate of all your

startup costs here is a list of items

you may need to take into account note

that this list is for a retail business

items will vary for service construction

manufacturing or online firms decorating

and remodeling fixtures and equipment

installing fixtures and equipment

services and supplies beginning

inventory cost legal professional fees

licenses and permits telephone utility

deposits insurance signs advertising for

opening unanticipated expenses now the

answer to the third question how much

money will you need to stay in business

must be divided into two parts immediate

costs and future costs from the moment

the door to your new business opens a

certain amount of income may come in

however this income should not be

projected in your operating expenses you

will need enough money available to

cover costs for at least the first three

months of operation the following list

will help you project your operating

expenses on a monthly basis

typical expenses for one month may

include your living costs employee wages

rent advertising supplies utilities

insurance taxes maintenance delivery

transportation miscellaneous now sum up

the total estimated monthly expenses and

multiply it by three this is the

amount of cash you will need to cover

operating expenses for 3 months deposit

this amount in a savings account before

opening your business use it only for

those purposes listed in the above list

because this money will ensure that you

will be able to continue in business

during the crucial early stages by

adding the total startup costs to the

total expenses for 3 months you can

learn what the estimated costs will be

to start and operate your business for 3

months by subtracting the totals of the

lists from the cash available you can

determine the amount of additional

financing you may need if any now you

will need to estimate your operating

expenses for the first year after

startup the first step in determining

your annual expenses is to estimate your

sales volume month by month next

determine the cost of sales you may want

to use a spreadsheet to do this after

startup the primary source of revenue in

your business will be from sales but

your sales will vary from month to month

because of seasonal patterns and other

factors it is important to determine if

your monthly sales will produce enough

income to pay each month bills an

estimated cash flow projection will show

if the monthly cash balance is going to

be subject to such factors as the

following failure to recognize seasonal

trends excessive cash taken from the

business for living expenses too rapid

expansion and slow collection of

accounts if credit is extended to

customers conclusion if you have

carefully answered all the questions in

this video you have seriously thought

about your goal however there may be

some things you may feel you need to

know more about owning and running a

salvage yard business is a continuous

learning process research your idea and

do as much as you can yourself but don't

hesitate to seek help from people who

can tell you what you need to know as we

conclude this video here are your 3 free

gifts 1 an extensive business plan

template that you can download and use

for a salvage yard business

to small business management software

allows you to plan your startup expenses

and sales and much more three book how

to start a business from scratch

a comprehensive manual that will walk

you step-by-step through all the

essential phases of starting a business

go to the description below this video

to get them now

these gifts are completely free no

strings attached

thank you for watching please like this

video