S/he should get the right people and pay them what they're worth. Trying to under-pay people results in sub-par people or good people leaving. 80% of nothing is a lot less valuable than 60% of something successful. Great people are absolutely vital at an early stage.

I'm not making things up here, either. Every successful entrepreneur I know agrees with that sentiment, as does the prevailing philosophy of investors[1][2], thought leaders[3], and serial entrepreneurs[4].

I have never once seen anyone successful say to hoard your equity, especially if you're bootstrapped and cash-flow positive. Greed is a great way to kill morale.

1. http://hunterwalk.com/2014/11/26/one-founder-told-me-he-want...

2. http://blog.samaltman.com/employee-retention

3. https://news.ycombinator.com/item?id=8109

4. http://jamesaltucher.quora.com/The-Ultimate-Cheat-Sheet-For-...