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A project proposal, also known as a business or work proposal, outlines the approach to fulfill a project’s requirements and constraints. It serves as a first introduction to a potential client, showcasing your team's identity, achievements, and suitability for the project. The proposal is a written commitment regarding the execution plan, involving a balance between self-promotion and clear commitments to scope, timeline, and budget. Although specific needs vary, creating a proposal template can streamline the process for future requests. The video then presents seven steps for building an effective proposal.