2024 Annual Letter: Why We Endure
Why We Endure
This is our fourth letter, marking the end of Decada’s fourth year.
Last year, we wrote that 2023 was a time of transformation — a year Decada began to come of age. After three years in the trenches, we weren’t seeing things for the first or second time anymore. That seasoned perspective changed everything.
In 2024, this perspective allowed us to lift our gaze from the day-to-day and think bigger, longer-term. At Decada, our name reflects our ambition: to think in decades, not quarters or years. We build businesses that outlast trends, weather storms, and become permanent fixtures in their communities. This focus guides every decision — no outside investors, no shortcuts, just a disciplined commitment to enduring companies built on strong foundations, proven leadership, and clear purpose.
This clarity was timely: 2024 was a year small businesses around the world were put to the test. A test that for many went beyond how to move forward…but why.
Costs soared with inflation. Consumer confidence faltered, dampening demand. Interest rates reached historic highs, squeezing capital and challenging margins. Yet, challenging times reveal character. They sharpen your why.
As I look at each of our companies, I see many ways the pressures of 2024 refined and strengthened our purpose. In this year’s letter, I want to tell you those stories because they’re more than just company updates – they’re reminders of the power of purpose. I hope they inspire you to clarify your own why, strengthen your resolve, and step into 2025 with confidence and intention.
In 2024, Decada Group slowed down when the world pushed for speed. We leaned into our why and prioritized durability — paying down debt, fortifying balance sheets, and decentralizing operations. With interest rates at their highest levels in over a decade, we made a bold pivot from acquisitions and returned to our roots to start a business.
After four acquisitions, Durable became our first startup since Tailor Cooperative, taking us back to the trenches where every decision feels sharper, and every challenge feels personal. Starting from scratch reminded us why we do this work: to create, to solve problems, and to build something that matters. Something of permanence.
This intentional focus wasn’t just a strategic decision — it delivered results. 2024 became our strongest financial year to date:
Portfolio earnings more than doubled: EBITDA grew 151.9%, alongside a measured organic revenue growth rate of 8.3% — a testament to the opportunity within our portfolio.
We paid down debt and fortified our balance sheets, driving our portfolio debt service coverage ratio to 4.3x, a strong amount of cushion that lets us build our businesses without the short-term pressures high debt can bring.
Cash returns were equally remarkable, reaching a cumulative return on invested capital (ROIC) of 609.4% — more than 6x’ing the capital used to acquire our companies.
Most notably, 2024 distributed cash represented 230.3% of our total invested capital, proving a patient model isn’t just the right model – it’s a winning one. And that momentum is only building.
As the year ends, what’s changed most for me in 2024 is a deeper appreciation for hard things — and how challenging times demand clarity of purpose. It’s years like 2024 that a clear why becomes the most important thing you’ve got.
Today, Adam and I are profoundly grateful — for the operators who lead with courage, the founders who entrusted us with their legacies, and the teams whose dedication turns vision into reality.
In this year’s letter, I’ll share how an enduring purpose has carried us forward. Thanks for reading.
- Chase Murdock, CEO
Why Endure?
It’s 2 a.m. The house is still, but your mind isn’t.
You stare at the ceiling, replaying the day’s chaos. A phone call with an angry client. A supplier demanding payment you can’t quite make. A meeting that should’ve been productive but left you more confused than when it started.
Numbers swirl in your head — payroll deadlines looming, margins tighter than ever, and a gnawing sense that no matter how hard you work…the pieces still won’t fit. You’ve put in more effort than you ever thought possible but the walls feel like they’re closing in. And then the question cuts through:
Why am I doing this?
The truth is, running a business is hard. Late nights. A heavy weight of responsibility. Constant decisions, none of them perfect, which leave you wondering if you’ve made a terrible mistake — or worse, if you’re in the wrong game altogether.
These moments add up. And in the quietest hours, doubt creeps in, making you question not just your choices, but your ability to keep going.
Why am I doing this?
This isn’t an isolated moment. In 2024, it played out in countless bedrooms and kitchens around the world. And while the answers weren’t always easy, they mattered more than ever.
The State of Small Business in 2024
To understand the state of small business in 2024, you must first understand the state of the small business owner.
Four years ago, programs like PPP, EIDL, and ERC funneled $5.2 trillion into the economy, temporarily keeping businesses afloat during the pandemic. But these programs were designed to patch cracks — not repair them. Over time, the safety nets disappeared, leaving many small businesses grappling with deferred debt and depleted reserves.
By late 2023, the Federal Reserve’s rapid rate hikes transformed cheap capital into a costly liability, affecting nearly every line of a business owner’s P&L This pressure compounded into 2024 — a year defined not by dramatic collapse, but by relentless strain. A slow grind where each step demanded more effort than the last.
As one business owner of a Utah cleaning company admitted to me: “The stress, failures, and tough market conditions had me questioning all my life choices as a small business owner.”
Here are the trends we monitored this year:
Rising Borrowing Costs
Interest rates climbed to their highest levels in decades, turning debt — a lifeline for many small businesses — into a crushing weight. Margins, already thin, were squeezed even further. (MarketWatch)
A Seattle business owner shared, “The loan I used to buy my business went from 5.25% to 10.5%, adding over $150,000 a year in interest payments. I didn't realize how fast or painful that would be."
In the most extreme case among my network, a friend described the toll of variable-rate loans: “After almost 12 months of negotiations with the bank, we were unable to reach a workout deal. We are closing the business. I laid off employees this week. I will declare personal bankruptcy this month or next.”
This story is a stark reminder of how precarious small business ownership can be. Success often hinges on razor-thin margins, where borrowing decisions made in one economic climate can become devastatingly untenable in another.
Inflation and Consumer Caution
Inflation persisted, with the Consumer Price Index (CPI) rising by 3.0% year-over-year in June 2024 — lower than the 8.0% peak in 2022, but still high enough to erode purchasing power. Households became cautious with every dollar, and non-essential goods and services took the biggest hit (JPMorgan).
Another business owner in Utah told me: “2024 was an emotional rollercoaster. Customer demand dropped by 20-30%, driven by customer anxiety. Orders came in well below forecasts.”
A Tight Labor Market
In 2024, labor costs remained the single most important challenge for business owners. A tight and competitive job market drove wages higher, making it even more challenging for small businesses to compete with larger, better-funded companies. (National Federation of Independent Business)
“We chose to run our team leaner this year than we ever have,” a retail business owner told me over coffee. “I know it strains my team. But it feels like the only thing I can do right now.”
Supply Chain and Trade Uncertainty
Supply chain challenges persisted in 2024, albeit less acute than during the pandemic. Businesses grappled with fluctuating costs, longer lead times, and growing uncertainty over potential tariffs and shifting trade policies under a changing administration. (The Business Continuity Institute)
“We’re worried how our supply chain could flip upside down in the future,” a Utah-based textile business owner explained. “Right now we’re fine, but I’m worried. We’re trying to explore contingency plans, but there’s just limited time.”
Digital Transformation and AI Adoption
The digital transformation gap widened further in 2024. Larger businesses accelerated investments in technology, while many small businesses struggled to keep pace. AI dominated discussions with its promise to streamline operations and boost efficiency.
“We experimented with AI to handle customer inquiries, and it’s saving us hours every week,” one business owner shared. But for many, the steep learning curve and upfront costs remained barriers.
AI adoption grew as tools became more accessible, offering a chance to level the playing field — but only for those who could adapt. For them, the gains were transformative. For others, the risk of falling behind grew larger than ever. (McKinsey)
Light at the end of 2024?
Despite the challenges, 2024 wasn’t without hope. Nearly three-quarters of small business owners entered the year expecting revenue increases — a testament to their resilience and optimism (U.S. Chamber of Commerce).
Late in the year, the Federal Reserve began lowering interest rates, spurring increases in spending and investment. Many saw this as a signal to reinvest, creating momentum for a stronger 2025 (The Wall Street Journal).
But the pressures of 2024 weren’t theoretical — they were lived experiences. A Utah-based manufacturer shared:
“We weren’t just fighting for profit — we were fighting for survival.”
A Why That Endures
Over a coffee, a business owner described today’s climate to me as mile 20 of a marathon — the infamous “wall,” where every step becomes a battle of willpower. At mile 20, the road hasn’t changed. The mile markers are still evenly spaced. But it’s when accumulated fatigue hits, and every step feels heavier than the last.
This was 2024 for many small business owners. It was a year of reckoning:
Why endure the relentless grind?
Why keep going when so much feels uncertain?
Why do this at all?
But here’s the truth about hard times: they force clarity. In the darkest moments, your why shines brightest. A clear, deeply rooted why is the most powerful tool a business owner can have.
A strong why steadies you. It pulls you out of bed the morning after those 2 a.m. sleepless nights. It reframes obstacles as progress. It keeps you anchored when everything around you feels volatile. As Viktor Frankl wrote in Man’s Search for Meaning:
“Those who have a ‘why’ to live can bear with almost any ‘how.’”
So how do you uncover a why that truly endures? Start by answering two essential questions:
What impact do I want to make through this business?
What am I willing to endure to achieve it?
It’s hard to answer these questions with something superficial. This is important, because if your why is rooted in financial motivation—quick wins, external praise, or fleeting rewards—it won’t hold up under pressure. When times get hard, those are the whys that crumble.
Your why has to run deeper. It must be rooted in values, identity, and purpose. When you have that clarity, it influences every decision you make.
At Northern Electric, our why carries weight: to safely power our community. And when we drive through the city, knowing our work is lighting up homes and powering local businesses — that’s what keeps us going. At Tailor Cooperative, it’s about preserving timeless craftsmanship and introducing people to the transformative experience of wearing clothing that actually fits them.
At Decada, our why is clear: we believe in Salt Lake City. We’re building enduring, beautiful businesses that strengthen our community and create lasting impact. That focus shapes every acquisition, every hire, and every decision we make.
If you’re unsure about your own why, I encourage you to reflect on these questions:
What would I still want to build if I never got rich doing it?
What do my customers, team, and community need most from me right now?
Who am I building this business for — and why will it matter to them?
Because when your why is clear, resilience becomes second nature. This year, our why carried us through.
A Why Behind Resilience: Workshop SLC
Salt Lake City is bubbling over with growth and optimism. Our city is coming of age, fueled by an influx of population growth, energy, and new ideas. But our fine art scene? It’s still finding its footing. There’s enthusiasm, but also a void — a need for something to convene, inspire, and elevate.
When we acquired Workshop SLC four years ago, we set our sights on filling that void. To convene artists. To curate creativity. To elevate our arts scene.
From a business perspective, the acquisition was a leap of faith. The business was priced right, being more of a startup than stable, profitable company. But its potential was palpable, and it aligned with a vision we deeply believed in: to build a fine art community in our city through quality instruction and education.
But vision alone isn’t enough. Turning it into reality demanded grit, capital, and relentless work. The early years were a crucible. The promise we saw came with cracks that ran deep. Its foundation was fragile.
Our first summer brought an unrelenting heatwave, and with it came failure after failure: the HVAC system broke down, the electrical system buckled, and the building’s porous walls offered no reprieve. Our artist-in-residence tenants—then the primary driver of revenue—began to leave.
At that point, our art instruction model was still nascent. Sub-leasing space to tenants wasn’t central to our mission, but was critical then to our cash flow. Every month felt like a losing battle as the post-acquisition J-curve went deeper than we ever anticipated.
Driven by our mission and pressured to stay focused, we made bold, necessary moves. We let go of tenants as a core revenue stream. We reconfigured the building, demolished walls, and adjusted the layout, reinvesting every available dollar into workshops, classes, and creative programming. We flexed lines of credit. We held our breath. But we endured because of our why: we were working toward something deeper, something we knew our city needed.
Every week we launched more classes: oils, acrylics, watercolor, drawing, even digital photography. And finally ceramics – an offering that doubled our business within months.
Slowly, the transformation caught momentum. Five-star reviews poured in, filled with stories about newfound creativity and meaningful connections. The community grew. Our operator led with grit, tenacity, and an unshakable belief in the mission.
By 2023, the building that once had seven private studios now had four large classrooms, each brimming with creative energy. By 2024, we were teaching over 100 classes per month and turning a profit.
We stayed focused: every dollar went to debt. The J-curve lasted longer than planned, but the momentum was finally on our side.
And then, in late 2024, we hit a milestone we’d only dreamed of in the early days:
We paid off every last dollar of debt.
It was the best check we wrote in 2024 and a reminder that leaning into our why was what allowed us to make the difficult decisions necessary to carry us through. At its lowest points—when the heat bore down, tenants walked out, and doubt clouded every decision—our why gave us the resolve to keep going. Today, Workshop SLC is our strongest business based on free cash flow as a percent of revenue. This business has come a long way.
I should also add, our operator at the helm had a remarkable year herself. Beyond earning a personal best in compensation, she guided her team to new heights, and gained recognition as a leader in her field. She was named Woman of the Year by her city’s chamber of commerce and in a few weeks will accept the Utah Business’s 40 Under 40 award — a proud moment for her, her team, and all of us at Decada.
Workshop SLC’s journey reflects a simple but powerful playbook we see across our portfolio:
Identify potential: Buy a company with untapped greatness, aligned with a purpose worth pursuing.
Invest deeply: In its people, brands, products, and systems, ensuring every investment reinforces the mission.
Empower leadership: Back the right operator, aligned with a shared vision, and give them the tools to succeed.
Build permanence: Drive earnings for reinvestment and lay the foundation for decades-long success, tied to enduring purpose.
Share success: Create environments where operators and teams flourish, achieving financial freedom and building meaningful lives aligned with their why.
Workshop SLC’s success shows what’s possible when a business aligns with its why and stays true to it through the hardest moments. We don’t build for quick wins. We build for communities, for transformation, and for permanence.
That’s why we endure.
A Why That Attracts the Extraordinary: Tailor Cooperative
Tailor Cooperative is where Decada’s story began. It wasn’t an acquisition — it was a creation. Adam and I founded Tailor Cooperative out of a shared desire to build a destination custom clothier: one so distinct people would want to travel to experience it.
As we shared in our 2022 letter: we wanted to create “a bespoke suit shop with the soul of NYC transplanted to downtown Salt Lake City.” That vision hasn’t changed. Tailor Cooperative has been a labor of love ever since—a business built on craftsmanship, pride, and the belief that a well-made suit can make a person feel unstoppable.
A strong why doesn’t just carry you through hard times — it can attract opportunities you never imagined. For Tailor Cooperative, that opportunity arrived in the form of an extraordinary challenge.
By mid 2024, Tailor Cooperative was thriving. It was our operator’s first full year at the helm, marking a new chapter. Having risen through the ranks, she had been promoted from within — a testament to her talent and the culture we’ve built.
Then, the kind of test that defines a business landed on our doorstep.
A member of the International Olympic Committee reached out, confidentially sharing that Salt Lake City was poised to be announced as the host city for the 2034 Winter Games. The delegation needed a clothier to outfit 160 of Utah’s top leaders—spanning both public and private sectors—for the global stage.
With just 60 days before they would fly to Paris for the official announcement, they chose Tailor Cooperative to deliver.
The ask was monumental: 160 fittings in 30 days, all while keeping the shop open for our already-scheduled clients who had been on the books for weeks.
Our team rose to the occasion. Long days stretched into nights as fittings ran late. Personal security details were managed, assistants coordinated, and schedules rearranged to accommodate the state’s busiest leaders. The work was relentless, but it wasn’t just about tailoring suits — it was about showcasing Utah at its finest.
When the moment finally came, it was unforgettable. At 3 a.m., some of our team gathered at City Hall to watch the live stream from Paris. Mayor Mendenhall, Governor Cox, and other leaders stood on stage, representing Salt Lake City with pride and purpose. And forgive me for putting it bluntly: they looked damn good.
For our team, this wasn’t just about suits — it was about being part of something bigger, a moment that reflected the best of Utah and the best of Tailor Cooperative.
The company achieved record earnings — both in absolute dollars and as a percentage of revenue. Our operator, who guided the team through this extraordinary chapter, was promoted to President and will be welcomed into the business next year as an equity partner.
This story isn’t just about financial success — it’s about living our why. Craftsmanship, pride, and tradition didn’t just sustain us; they propelled us forward. Opportunities like this come from staying true to what you believe and delivering consistently.
2024 reminded us that when you fully commit to your why, the rewards surpass profits — they open doors to opportunities you never thought possible.
A Why of Workmanship: Built By Design & Northern Electric
If I had unlimited pages, I’d dive deep into the stories of these two companies. Instead, I’ll focus on the shared thread that defined their year: a commitment to craft.
For Built By Design, 2024 was a year of milestones. The company completed its first passive custom home — one of the most demanding structures to build because they are designed to use minimal energy for heating and cooling, airtight construction, advanced insulation, and precision engineering. Completing this project perfectly showcases our team’s passion for their craft that has become Built By Design’s hallmark. At the same time, demand for custom ADUs continued to surge, driven by Utah’s rapid growth. Built By Design continued to lead this market niche with excellence.
Leadership transitions often bring uncertainty, but Built By Design’s was seamless. We welcomed two new equity owners, including our new CEO who had already proven to be an exceptional steward of the company’s mission for years. Under this new leadership, Built By Design closed its largest year in history and entered 2025 with infectious momentum.
For Northern Electric, 2024 was a year of leveling up. The company took on its largest project to date — a challenge that demanded more than technical expertise. It required the team to elevate their project management, coordination, and communication. They understood the importance of the job and the trust placed in them, pushing harder to deliver results that matched the scale of the opportunity.
Beyond this, Northern Electric secured pivotal contracts in EV infrastructure and home electrification, placing the company at the forefront of two of the fastest-growing sectors in energy.
Both companies exemplify the power of a why rooted in craft. When you take pride in the work you do, building a strong company becomes second nature. Built By Design and Northern Electric don’t just thrive because of their craft — they endure because of it.
A Why of Expansion: Introducing Durable
Adam and I have always had a clear why: to build enduring businesses that strengthen communities and create lasting impact. But like any strong commitment, a why doesn’t stay static — it deepens, sharpens, and grows with experience.
As we wrote in our 2022 Annual Letter, “Community and growth can go hand in hand. In fact, it might be the only way forward.” That belief has always been central to Decada Group. In 2024, it became the driving force behind Durable, which we introduced in late 2024 as Decada’s fifth operating company.
Durable wasn’t born from a whiteboard or a grand strategy session.
It emerged naturally — from our desire to do what we care deeply about, but now beyond the walls of our portfolio and right in our own backyard, in Utah.
Durable is how we take the playbook we’ve developed to help our operating companies succeed and share them with the broader small business community. It’s about creating the ecosystem we wish existed when we were starting out — one that strengthens small businesses, empowers leaders, and amplifies entrepreneurial impact.
From launching tightly-knit peer groups that foster real camaraderie to hosting nearly 50 events in 2025, Durable is expanding its reach to support Utah’s small business community. Our focus is clear: to equip business owners with the support, education, and network they need to thrive. Utah has long punched above its weight — now it’s time for small businesses to lead that charge.
In its first few months, Durable quickly surpassed $400,000 in annual recurring revenue through consulting, fractional CMO and CFO services, and leadership coaching. We’re helping business owners unlock growth, think more strategically, and build stronger, more profitable companies.
And we’re just getting started.
In 2025, Durable will launch a transaction advisory and business brokerage division — guiding business owners through acquisitions, exits, and generational transitions. Our goal is ambitious: to become the backbone of Utah's small business community.
One day, Durable will stand as its own fully staffed and scaled operating company. For now, it’s a natural extension of Decada’s mission — a reflection of how our why continues to evolve.
This is what a strong why makes possible: it grows with you, drives you forward, and multiplies your impact — not just within your business, but across your entire community.
Durable is our way of multiplying that impact, and we couldn’t be more excited for what’s ahead.
In Conclusion: Clarity at Mile 20
There are countless ways to make money and just as many ways to spend your time. But as you reflect on 2024 and look toward 2025, I challenge you: Don’t spend your time in pursuit of trivialities.
A clear why transforms the ride. A clear why gives your employees a reason to show up with pride. It ensures your products and services are more than transactions; they become threads in the fabric of your community.
“For Adam and me, our personal why is to build a day-to-day from which we don’t want to retire — a life that challenges, fulfills, and inspires us.
That why shapes Decada Group. It’s why I sometimes call us “the largest lifestyle business not on a beach.” It’s a joke, of course, but it captures something true: we’re not chasing unicorn valuations or billion-dollar exits. Why exit, if the work itself is the reward?”
2024 reaffirmed that purpose. The horizon is full of opportunity: welcoming more businesses into Decada Group, expanding within our portfolio, and letting Durable extend our reach across Utah. And through it all, we’ll remain steadfast in our disciplined, patient model — because we know that our why is the foundation for every success.
To our operators, your grit and dedication are the backbone of everything we achieve. To the founders who trust us with their businesses, your belief in our stewardship inspires us to honor the legacies you’ve built. To our customers and communities, thank you for believing in what we’re creating together.
And to every business owner reading this: remember, the road ahead will have its mile-20 moments.
But when your why is clear, it will carry you through every challenge.
2025 is a blank slate. Let’s fill it with boldness and intention. Let’s commit to the work that matters — to decisions that reflect our purpose, to fostering communities that thrive, and to shaping a future as durable as the businesses we build.
Here’s to a year defined by your enduring why.