Identify the space and prepare the environment. Choose two rooms, if possible. One should be used to locate the recording equipment. The other should be where the musicians perform. The two rooms will provide acoustic isolation so the person working as the recording engineer can hear the audio as it's being recorded, not as heard in the room where it is being performed.
Eliminate unwanted noise. Take what measures you can to reduce noise from the outside. Use thick drapes, carpet or other sound absorbing materials to "deaden" the acoustic properties of the space. Recording in an acoustically neutral environment reduces unwanted sound created by the room itself.
Choose the right microphones. Acoustic instruments and vocalists will require professional microphones designed for specific recording applications. Be sure to match the microphone to the application it was designed for. Use microphone stands to reduce unwanted vibration.
Select high-quality headphones to allow musicians to hear themselves.
Choose an audio mixer that can provide independent signal feeds to both the musician headphones and independent tracks recorded by the digital audio workstation. The mixer should have enough inputs to handle needed inputs for microphones and direct instrument feeds.
Install a digital audio workstation (DAW) that includes hardware to record multiple tracks from the audio mixer. The ability to record tracks independent of one another allows you the flexibility of adjusting the mix between audio sources after recording sessions are finished. Home recording environments may use eight to 16 audio tracks. Complex audio production may require more inputs. A DAW uses a computer and recording software to record the individual tracks and add special effects.
Find a recording engineer. Unless you plan to fill this role, the best situation for performing musicians is to have someone tend to the technical aspects of the recording so they can concentrate on their performance. A producer is also helpful to act as an objective ear to provide helpful input during the recording process. The recording engineer may function in this capacity or you may have other musician friends willing to fill this role.
Send the finished CD master created by the DAW to a professional CD replication company. Avoid using home computer equipment to duplicate the CD. A professional product that can be sold at retail and online outlets will require professional packaging that includes a UPC code, shrink-wrapped jewel cases and CDs produced using a duplication process known as replication.