Select what type of wood you will use. You can use an old piece of wood or have a new piece cut to your specifications. The wood can be any size or shape.
Select an image or lettering for your sign. If deciding on a full panel picture, that image will need to be transferred to the wood. Print the image out on regular white paper. Use graphite paper to trace and then transfer the image to wood by pencil tracing. The same technique basically applies to stenciling an image. Use a pencil to trace the pattern and a ballpoint pen to copy the outline to the wood.
Paint the wood once you have the pattern laid out. Use craft paint to fill in the traced pattern or lettering. Replicate the colors of the original image, if using one, or create your own design. If stenciling, you can paint the letters whatever color you wish.
Distress the wood. Once the image of the lettering has been laid out you will want to give the wood an antique look. Sandpapering the wood is the easiest way to give it a worn effect.
Apply details and hanging hardware. Mount screws and wire on the back of the sign to provide mounting pieces. Use a screwdriver to place screw in the wood. You can use spare screws place about a quarter-inch into the wood. Wrap a piece of wire of around each screw to provide a create a mounting hook.