A junk shop is a retail outlet similar to a thrift store which sells mostly used goods at cheap prices. Last time I spoke of a junk collection service, this is one of the sales channels of that business.
Junk shops in South Africa mainly sell building materials (especially secondhand building materials), household appliances, furniture and other related products.
We know in a retail business, success depends on optimal suppliers and buyers.
This business does not only collect junk for free but usually buys from people who are cleaning out or moving. Let me be clear, this business buys anything, they usually make an offer on the whole lot. If you thinking of starting this business and being picky then rather start a pawn shop, because you are not getting the gist of a junk business, a junk shop can buy anything they have a place to store. But they don’t offer much money and most people who sell here just want to get rid of the stuff.
This business is usually best positioned close to informal settlements or townships, that will be the main clientele, another benefit of being close by is cheaper rent. You will need large premises with a large yard (especially if you doing building materials), you will need a large vehicle to pick up stock, whether you want to offer a delivery service, another potential revenue source is up to you. While that is the stereotypical client in this business anybody looking for cheap stuff shops here, money is so scarce these days, our middle-class is busy evaporating, so your target market is getting bigger and bigger.
This is not a glamourous business but it is a business that can generate a bit of cash once you are stocked up enough and have a constant flow of cheap goods coming in and clients looking for cheap stuff. It is also a business that does not require perfection, thinking or genius, low-effort entrepreneurs might succeed here, yes there will be a lot of physical work, but you must have labourers to do the moving around and cleaning. Menial work pays minimum wage no need to do it yourself.