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In this video tutorial, Matthew guides viewers on creating a daycare contract using Legal Templates. To begin, viewers need to click a link in the video description that directs them to legaltemplates.net. Once there, they should navigate to the business forms section and select "view all business forms." By using the search engine, they can find the daycare contract by entering "daycare" and selecting "contract." After previewing the PDF to see the layout, they proceed to create the document. The process involves specifying the type of transaction (services) and providing details like the service provider and address.