Reflecting on the past three years, Wanaka business owner Dave Brown said Covid-19 highlighted to local businesses that dependency on one demographic, or one seasonal activity, exposed them to higher risk of failure.
Mr Brown runs both TheBothy Central accommodation and lake fishing and guiding.
The decision to diversify became more of a priority when he moved with his family to Wanaka, he said.
"My wife’s a teacher and we knew we needed to have a more stable investment platform and business that would carry us through the next 10-15 years. It’s a multifaceted thing — it does focus around kids, family and time," he said.
After moving through the Global Financial Crisis in 2008, he had also taken the lessons learned then and had more than two years of cash reserves prepared.
"It allowed us an opportunity to breathe and not be stressed ... and also look to invest, because we weren’t in a stressed position which allowed us to diversify ... It’s about building in little inputs that can insulate us from any big shocks, [and] has worked for us quite well. Because some of these things have been pretty consistent even through Covid, which creates turnover while you’re quiet," Mr Brown said.
For Simon Hawkins, having two businesses has allowed extra security despite working in one seasonally-based industry.
His hunting business, Cardrona Outfitters, was seasonal, but despite that he probably would have exited the Wanaka Free Range chicken business if Covid had not come along, he said.
"It was pretty much a lifesaver for us. If we didn’t have that, we would have been in serious trouble."
He started his free range business 12 years ago and has been a hunting guide for 14.
Covid completely destroyed his hunting business, but having the free range chickens helped them survive, Mr Hawkins said.
Central Otago District Council economic development manager Nick Lanham said business diversification was important as it spread risk and ensured businesses are reorientated towards new opportunities in a changing environment.
In Central Otago District they had a high level of people who were self employed: 23%, compared with 17% nationally. They also had a larger proportion of small businesses, of only one to five employees, in the district: 19%, compared with 22% nationally, he said.
