Choose your computer platform. The centerpiece of your home studio will be your computer. What once required a multi-track center console of buttons and knobs can now be accomplished with a mouse and some software.
You must first decide if you will be building your platform around an Apple Mac or a PC. PCs are upgradeable and are usually much cheaper than Macs. Macs, however, tend to be more dependable since Apple makes both the hardware and the software.
Your computer should have enough memory to save your music projects. You also want a computer powerful enough to run today's digital studio software packages.
Pick a microphone. Microphones can range from a few dollars in price to several thousands of dollars for the high-end units. To get good quality, avoid the cheap mics since you can usually get great, quality sound from a mic that costs a couple hundred dollars.
You have the choice of two different types of mics. A dynamic mic is generally used for stage and for recording studios. Dynamic mics are typically sturdier and can be used to record a variety of instruments.
Condenser mics are usually more expensive than dynamics, and they use Phantom Power to charge the diaphragm of the mic. Condensers are generally used in recording studios.
Decide on your interface. Now that you have your computer and your microphone, you will need to decide on the audio interface.
While your computer is equipped with a standard sound card, it is recommended that you purchase an external audio interface that connects to your computer by PCI, USB or FireWire. An audio interface replaces the functions of a soundcard and serves as the connection for instruments and mics to your computer.
Audio interfaces could be as simple as a classic mixer connected to your sound card, or as complex as a stand alone multitrack recorder.
Select your studio monitor speakers. These are professional quality speakers that allow you to listen to your recording playback. Monitors can either be powered or passive, which will require a separate amplifier.
Once you've decided on your hardware, you will need to decide on a sequencer software package. A sequencer performs the functions of a traditional mixing board.
Options include Cakewalk, Sonar, Cubase and the industry standard Pro Tools. You can get a relatively inexpensive sequencer that allows you to record, mix and add effects to your songs, all from your computer screen.
Connect everything now that you have your home studio components. For the basic small studio, your mic and/or any digital instruments will be plugged into your audio interface's input jacks. Connect your headphones to the mixer.
Connect your audio interface to your computer and install your sequencer software per the manual's directions. Set you monitors up about 3 to 5 feet from you so you can minimize the amount of sound in the room during playback.
Your home studio is now complete and ready to go.