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A project proposal, also known as a business or work proposal, outlines the approach to fulfilling specific project requirements and constraints. It is often the first opportunity for a prospective client to learn about your team's capabilities and why you are the best fit for the project. The proposal serves as a written commitment regarding the execution plan if awarded the contract, balancing self-promotion with clear commitments to scope, timeline, and budget. Each proposal may require unique elements, but creating a formatted proposal template can streamline the process for future requests. The video suggests seven essential components to include in a project proposal.