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Mark Joseph demonstrates how to write a proposal using Microsoft Word. He emphasizes the importance of including a heading at the top, which should feature the date, address, and the recipient's name, followed by a salutation (e.g., "Dear Mr. Smith"). In the body, he outlines the proposal, describing an invented software and the request for investment from Mr. Smith to bring it to market. Mark concludes the proposal by thanking Mr. Smith for his consideration, providing his name, and including contact information for further communication. Finally, he advises saving the document in an easily accessible location, suggesting naming it "software proposal" for easy retrieval.