Starting Your Own Salvage Company

People ask us all of the time “how did you get started in salvage?” or “I’ve had this dream for years, how do I start a salvage business?”
We are truly flattered by all of the wonderful comments sent to us about our business but I also giggle to myself because if you had been filming us in the early days it would have made a top rated comedic “You Tube” video today.
It has definitely been an upward battle with great losses and enormous gains monetarily. Many character building moments, ah ha moments, complete break down moments, and rebuilding both relationships and spirit moments.
I don’t know who said it but we live by the saying that “if it were easy to start a business, everyone would do it”. And it’s true. There are fabulous and not so fabulous things that come with owning your own business such as your time is truly yours. We work much longer hours than we ever did while working for someone else but when it’s yours and it’s your passion, time doesn’t seem to matter. We’re able to leave and do the everyday things most people have to wait until the weekend to do. What’s funny is that there is always an urgency to get back to the showroom and see what going on, whose emailed, is there a new opportunity waiting for us in voicemail? The downside is that you are completely tied to your business. And you have to be to make it into your fifth and crucial year of business. Ask my husband, I live and breath Island Girl Salvage. It’s like a child that I’m raising to be an upstanding citizen.
I digress, how to get started you ask? The first and probably most important thing we did was to reach out to the Woman’s Business Development Center in Chicago. We signed up for a seminar series called “Jump Start Your Business”. The seminars were taught by successful entrepreneurs that held nothing back. It was hard work and they kicked our butts weekly but we learned more there than anywhere else. The series taught how to create a business plan, how to get financing, what type of business do you have, Retail, wholesale, service? What kind of capital do YOU have to start? Ah yes, consider those pedicures and manicures luxury items when you get started. What does your business model look like? How will you make money? We learned that we still had to hone our selling technique. How do you get people to come into your store? Heck, what kind of store do you have? Is it brick and mortar, online, consignment, word of mouth out of your garage? And then, how do you get them to buy something from you? This is where the type of merchandise that you sell comes into play. Salvage is tough and there are many levels of what is considered salvage. Are you selling museum quality pieces? Are you selling house parts, commercial parts, and industrial items? Are you going to rewire your light fixtures? Think overhead, think about services. Are you able to deliver, ship, can you handle a claw foot tub? Are you able to hire a crew for demolition or are you going to rely on extracted inventory? And let me tell you, salvage is not a valued commodity as far as the banks are concerned. If you’re planning on getting a loan to start you may want to reconsider. Banks can’t value your salvage inventory. There’s no basis for tracking what the value of a claw foot tub is. Salvage is an industry where it’s whatever the market will bear.
Now what about the integral people you’ll need to maintain your business. How are you going to track inventory and sales? Are you familiar with QickBooks? Take a class. Hire an accountant to help set up your books and your taxing. You’ll need an attorney to file your business and help you figure out all of the liabilities of owning a business. Are you going to trademark?

Have I scared you yet? Here are several questions to ask yourself, and then seek out an organization that helps entrepreneurs get started. Then let us know your experience!

Is salvage your passion?
Have you written a business plan?
How much can you afford upfront and down the road?
How much do you plan on spending on marketing, overhead, inventory, employees?
What is your niche?
How will you reach people?
Do people want to buy what you have to sell?
What kind of store do you envision? Is it possible?
Do you have the time to commit to a business?
How can you do it better than what’s already available?
Do you have the support around you to take on starting a business?
Where will you get your inventory?
Do you know how to soft salvage?
Do you have insurance?
Do you have a network in mind for buying your inventory?
Do you have enough inventory to fill your imagined store space? What do you need to make to cover your expenses?
Do you have a marketing plan in writing?

I'm sure I've missed quite a bit of information. Please feel free to add to it.
Thanks,
Tab