I think it's higher risk with the volatility in the housing market. Since the housing market has cooled over the last 3 years, that growth makes sense, as sellers have invested more in optimizing due to lower buyer demand at the price point (anchoring on the post pandemic real estate value growth). I'd be curious if you had comps fromredacted, when the market was so competitive that people were waving inspections left and right, cash offers, etc on what the demand for professional staging was.

I own 2, soon to own 3. Happy to answer any questions you have. One of the few niches without a lot of professional competition but it has significant challenges. Strong owner community (look at Stage it Forward on Facebook and RESA meetings). Difficult to not be run hands on. Product delivery is highly subjective. Lots of emotions. Customers don't understand the product you are selling, leads to a lot of heartache. Would want to target at least $2m annual rev in order to be run comfortably IMO. Capital intensive to expand. Easy to roll up, lots of smaller companies throw in the towel each year. Gobble them up. SDE at 600k on $1m rev is not realistic. That means the owner is killing themselves to do too much of the work themselves or is pushing a lot of their maintenance ops cost into capex to juice the numbers. Realistic SDE on $1m if normalized would be something like $350k. The rest of the numbers look correct. Counter cyclical to a degree. When the housing market slows a greater percentage of sellers want to stage, and when the housing market slows more homes are on the market to be potential customers. But you'll need more inventory as a lot of it will be stuck sitting in houses that aren't selling. When the market is red hot your inventory requirements will be lower for the same # of jobs. Balanced real estate market is probably the worst for staging. Age and condition of furniture is a big concern. If they have "$1m" worth of old furniture it's not worth much. SBA will value the furniture at 10% of market price, essentially $0 as it's "furniture and fixtures" so you're going to have big liens on your RE. Designers are easy to hire. Everyone wants that job. Movers will be tough to hire. The people who want that job can be uh.. unreliable. Virtual staging is a minor headwind. Home valuations being high is a huge tailwind, it makes more sense to drop a couple $k on staging. More people expecting staging as table stakes to list is a huge tailwind. TV shows about staging are a tailwind. Anything else I can answer?