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The video tutorial explains how to create templates in Excel, emphasizing that it's simpler than often perceived. The core idea is to set up a worksheet where users can input data without overwriting the original template. This allows multiple users to access and use a blank version of the template later. The simplest method to achieve this is to make the file read-only, which ensures that while users can open the document, they cannot save over the original work. This approach prevents loss of the setup and allows for easy template reuse by others.