Don't worry about form or format. Worry about valuation. To calculate your valuation, divide the money you're asking for from investors by the percentage you're offering to the investors in return.
Does it hold up? Is it a good deal for them? That's what matters.
For example, if you offer half of the company for $250,000, you're saying that your business is worth $500,000 total. Is it? Does it have a track record? Management team? Defensible product or technology?
If you have a good deal to offer, investors will be interested.
And if they are interested, they will want to see your business plan. That's where you make real commitments. The plan should include a lot more than you can put into a three-page document, such as projected income, cash flow, balance sheet, use of funds, stock positions and so on.
Question added to topic Starting a Business • September 9, 2008
Is there a form or preferred format for creating an equity proposal to a potential investor?
I've created a business synopsis. It's a three-page, boiled-down version of our business plan that lays out the company, opportunity, market, management and projections. I drafted a use of funds page that has the equity offer in it. I'm wondering if that's the proper business format or whether that page should be offered once an investor has indicated interest?