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A project proposal, also known as a business or work proposal, outlines the approach to execute a solution that meets specific project requirements and constraints. It serves as an initial communication to a prospective client about your team's capabilities and differentiation from competitors. The proposal should highlight your strengths and address the project scope, timeline, and budget. It acts as a written commitment to the plan you will execute if awarded the contract. Investing time in creating a proposal template can streamline the process for future requests. The video suggests seven key elements for crafting effective proposals.