August 22, 2017 at 10:58 am #3159
My father has a scrap facility in Pakistan, he wants me to import ferrous and nonferrous scrap.
Where do I start? Most of the scrap facilities around my area won’t even show me the material.
August 27, 2017 at 2:05 pm #3187
amenanoori, not only is that a tough question but a very serious one. Starting a new business is a serious step in anyone’s life and a scary one! All sort of thoughts/questions go through you mind and need to be addressed.
**What’s my first step, where do I start?
**How much capital will I need to get it off the ground?
**What about long term, how much reserve funds will I need to hold till I realize a profit?
**How long will it take to realize a profit?
**What if the market tanks again, can I survive that?
**How many employees will I need to operate my business?
**What about their salary’s, benefits, paid holidays, what burden will that place on my availability of funds?
**What about a facility to operate my business from, should I buy on lease?
**What about zoning restrictions, environmental regulations, state, city, county and federal regulations specific to my business, what affect will those have on where I can locate my business? How much will they add to my bottom line?
**What about the operating costs, pencils, paper, electricity, water, sewer fees, equipment, upkeep (maintenance) costs for that equipment, fuel, computers, furniture, telephones, internet service?
**What about advertising costs, do I advertise or not, how do I draw costumers to my new business?
Questions like those above are pretty standard and must be addressed by any new potential business prior to opening your doors. Failure to address and answer each of these concerns prior to opening will guarantee your failure. Your business will be doomed to fail before it even gets open.
Then there are questions specific to any import/export business ;
**What are the Federal restrictions, requirements I must be aware of and comply with that regulate any import/export business?
**Are there are special requirements or regulations that specifically apply to scrap metal industry import/export?
**What about the costs and/or fees associated with scrap metal import/export, how much will they add to my bottom line?
**What about transporting the material, what type of vessel will be required?
**How much will a contract with a transport facility cost me and what effect will that cost have on my bottom line?
**What about port fees, both here and in a foreign country, how do they figure in?
**Labor strikes, all ports in the USA are tightly controlled by the Long Shore Unions, what if they decide to strike for higher wages, can I survive a lengthy labor union strike with my material unassailable, stuck in a port somewhere?
**How do I get the material moved between the port of call and my facility? What type of equipment will I need? Should I purchase that equipment and use my employees to move the material or should I should I contract with a third party to handle that job? Whether handled in-house or through third party contract, what are the cost associated with either option?
I’m sure there are many more concerns associated with the import/export of scrap metal that I have no clue of. Whatever they are, you must find out and then address each and every one of them before making a final decision. Again, failure to know what’s required and what the cost associated with each item before starting your business will doom your business to failure before before it even gets started!
Then there are the personal questions, concerns that keep you awake at night and give you cause for serious self doubt. I know for me, these were the really scary questions, the ones that make you doubt yourself and second guess your desire to open a business;
**The insecurity associated with not having any guaranteed source of income. Most of us worked for someone else prior to opening a new business. Every week we knew when we would get paid and how much we would get that week. We were able to count on those funds and plan/budget or lief around them. As long as we showed up for work every day and performed or duties satisfactorily we knew the funds and the job would be there. We were SECURE in our future. Starting a new business, working for yourself is untested ground, someplace you have never walked before. It comes with no guarantees and could fail just as easy as it could succeed. If it fails how do we pay or bills? How will I provide for my family? Suddenly the secure feeling you got from working from someone else with a guaranteed paycheck is gone, disappeared and you are left with serious self doubts. Can you overcome these feelings of doubt? Can you win the battle and conquer that fear? Are you willing to take that risk?
**Another unknown that will play over and over in your mind and must be conquered; How, what affect will the stress and responsibilities of a new business have on your family and those you love? People who have never been in business before don’t fully understand the responsibilities and stress that a new business place on the owner. How could they, they have never been in business before. Operating a new business is a 24/7 commitment, sorta like a new born baby. You don’t get weekends off, you can’t through up hands when things are going badly and walk away. You can’t rely on someone else to resolve your problems or make the really tough decisions. The business will steal a lot of your family time, demanding your constant attention. You don’t get sick days, not for you. Vacations and time off become a thing of the past. If you want too succeed, to build a business that can eventually run and prosper on its own, you must give it everything you have at first; all your attention; all your time; all your money. If an employee calls in sick, quits or just does not show up that day you must be willing to step up and do their job until their position can be filled again.
I’m not kidding, opening a new business is a very serious decision, one that needs to be thought over very carefully. Not only the effects it will have on you and your family’s life, but the effects it will have on all those you employ. Good or bad, whatever happens, it all falls back on you.
It’s not all bad though and I don’t mean to paint the picture that way, I’m only trying to make you aware of how serious that decision is and questions you need to ask and answer to insure your success. Obviously there are many good things and benefits associated with owning a successful business, I’ll tell you what my favorite of them all is.
That’s waking up in the morning, looking in the mirror and knowing that the person looking back at you did it. That they and they alone faced all adversity, all problems and even when they thought they could not go any further they refused to quit, to give up and kept moving forward. That they never ever quit and did what all others said they could not do, that they would fail miserably trying to do. That you truly are in control of your own destiny and that’s something no one can ever take away from you. There is no greater feeling than knowing you have succeeded.
Good luck my friend, make a decision that’s right for you and your family and if you decide to move forward then….
NEVER, EVER GIVE UP OR QUIT! The end of the rainbow is right there in front of you, just keep reaching for it and one day it shall be yours!
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