Entrepreneurs can adopt several strategies to manage earnings volatility:
1. Diversification: Offering a diversified range of products or services can mitigate the risk of dependency on a single revenue stream. 2. Agile Business Models: Adopting an agile business model allows entrepreneurs to pivot quickly in response to market changes. 3. Cost Management: Keeping fixed costs low and maintaining a flexible cost structure can help manage financial stress during downturns. 4. Risk Management: Implementing robust risk management practices can help foresee potential issues and prepare accordingly.