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The tutorial guides users in creating a database file using Excel. Start by opening a new blank sheet and entering the column labels in the first row: "Name," "Designation," "Mobile Number," "Office," and "Email Address." It is important to capitalize the first letter of each label, as lowercase letters may cause issues with DocHub and Illustrator. The speaker emphasizes consistency in labeling to avoid confusion. Finally, users are instructed to save the file, suggesting creating a new folder for organization.