Let me add something from another perspective:
Speaking as a startup owner who has had money problems from time to time:
a) crap happens
b) your hourly people, who have no equity, deserve every single cent. Whether answering phones, stuffing boxes, or whatever, these people work hard, and you MUST pay them every penny, on the day it's due.
c) Folks who have equity, and will see some upside in good times, can be asked (ASKED, not TOLD) if they are willing to make sacrifices for the success of the team. Ask them ahead of time - preferably well ahead of time.
d) When a startup has successes, it's because of your people. When a startup has problems, it's because of leadership. Get out your spoon and start eating shit ^H^H^H humble pie. Tell your people that screw ups happened, and - because the buck stops with you - YOU are the cause. Apologize to your people.
e) LEADERS LEAD FROM THE FRONT.
The last point is the most important. Before an owner asks anyone to take even a temporary pay cut, he should cut his own pay to the bone. Before he misses a payroll for other people, he should have already skipped a paycheck or two.
Startups come and go, but 50 years from now, your reputation, and your sense of self will still be with you. Make sure that you are scrupulously ethical with your people.
Travis J I Corcoran, President SmartFlix