There is a price tag for unlimited beer for the rest of your life. It's $1,000.
In reality, the cost for that much beer is a lot more. But for a few dozen people, free beer for life is their reward for investing in a small restaurant called Northbound Smokehouse & Brewpub in a quiet southern corner of Minneapolis.
Amy Johnson and her two business partners needed to raise $220,000 to secure a bank loan and fulfill their dream of opening a restaurant that served beer brewed right there at the pub. They went to investors who offered to give heavily for a voting share in the restaurant. But since the potential investors had no experience in the restaurant industry, the owners backed away.
And then came the idea from some friends and family who wanted to help out. "They were, like, 'I've got a few grand, but I don't have too much money,' " Johnson recalls. "And people kept saying this over and over, and we latched onto the idea. Why not just take a couple grand from everybody and then we'd have all the money we'd need?"
So, that's what they did. People who invested $1,000 receive free in-house beer for the rest of their lives, or as long as the place stays open. People could also receive 0.1 percent nonvoting equity in the company for every $1,000 invested. Or for $5,000, investors get 0.5 percent equity and free in-house beer for life. The brewpub, now a registered LLC, hit its goal of $220,000 through the 46 people who chose the first option, 42 who picked the second, and 30 who took the third, all finding out about the opportunity by word of mouth.