Decide on the type of Internet connection you will use. For best performance, use a cable or DSL connection with at least 6Mbps minimum download speed. Choose higher speeds to enable more users to share the connection with acceptable performance.

Determine how users will connect to the network: wired Ethernet, wireless Ethernet, or a mixture of wired and wireless devices.

Select a cable or DSL modem (depending upon your connection type) and a router. You have more flexibility if you use separate modem and router devices.

Have the cable or DSL modem installed by the ISP (or order a self-install kit from the ISP; a self-install kit contains the modem and other hardware needed for installation). You can also purchase cable modems at computer and electronics stores.

Place the router where it will be most convenient for connections, such as a wiring closet or shelf. Make sure the modem and the router can connect to each other via a suitable network cable (CAT5e or better quality). If you plan to connect with wireless clients, try to choose a central location for the router.

Configure the router to connect to the modem and, if you are using wireless clients, select the most appropriate wireless security settings.

Connect each client to the router. If you are using wireless Ethernet, you must configure each client to use the same SSID, encryption type, and encryption key as those you used when setting up the router.

Configure each client to be part of the same workgroup.

Set up file and printer sharing on each client which has resources you want to share.

Test the Internet connection on each client.

Test the ability to access shared resources. Depending upon the version(s) of Windows in use, you might need to set up additional user accounts on systems with shared resources or change password settings to enable remote users to access shared resources.