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In this video tutorial, you’ll learn how to set up business letters in Microsoft Word. First, adjust the top margin from the default 1 inch to 2 inches. To do this, go to the page layout, click on margins, and select custom margins. Input "2" for the top margin and press OK. After this change, the cursor will shift downward. The next step involves modifying the font style, size, and spacing options to ensure a professional look for your letter. The tutorial emphasizes these initial formatting adjustments before proceeding with the content of the letter.