I think you can live on renovations alone....hundreds have for as long as I can recall. I grant you, having that one new course fee a year does help the revenue side of the equation, but an 18 hole blowout for nearly full fee will work almost as well.
I worked 7 years for Killian and Nugent. They had five new course equivalents in those years (Kemper Lakes, Lake Arrowhead, Forest Preserve National , Ditto (Arlington, TX) and two nine hole courses (Joe Black, Chicago, Poplar Forest, Virginia).
The rest was master plans, single (or double greens) and sometimes bigger renovations. I recall Toro telling me they sent out 300 corporate packages. Even at the height of the boom, about ten guys took up more than 80% of the new courses built, and us mid level guys did okay, but over half of those probably never had a new course built. I doubted I would ever build a dozen new courses when I started. I have been lucky with over 50, but even successful guys like Damian Pascuzzo only have 15-20 to their credit, and experienced the boom.
gca.com member Trey Kemp works for my former associate John Colligan. He has been gone for 15 years now, and has only two truly new courses (maybe three, not sure) to his credit, but has been very successful in the renovation market, often being the busiest gca in the DFW market. For that matter, better known Ron Forse and Ron Pritchard may only have a few courses each to their credit, but remain busy. I know there are others I am forgetting.
The young guys may have to adjust their sights a bit, but the "greybeard" take is that it may be a case of business returning to what us old guys in the biz call "normal" rather than exceptional.
But, Frank is right, the boom and bust cycle, trying to account for work flows, etc. are big issues for small firms. A Fazio at the peak could go from 8 to 10 courses pretty easily. Going from 1 to 3 is still just two more projects, but also a 300% increase in business, not 25% increase of the first example. Like him, I have rounded up my regular part time contract labor staff and then am reaching out to the extended part time contract labor staff in case it gets busier quick (which it may....)