Hold a preproduction meeting to learn what kind of recording the band wants to make, where they will do it and how they will accomplish it. Addressing these issues now will ensure a successful project while the band determines if your style is a good fit.
Review the material--which is normally heard, at this point, in a demo (demonstration) recording. Demos can run from simple guitar/vocal recordings to fullblown 8-, 16- or even 24-track recordings--from which you can glean arrangement ideas that lift songs to the next level.
Attend rehearsals to observe each member's playing styles, how the songs are shaping up and how the band's treatment of its own material compares to the demos. These observations, in turn, will guide your own recording approach.
Revisit the budget, which usually decides what sort of recording emerges. Time is the rarest element on the independent ("indie") periodic table, so more first and second takes are used--versus the more drawn-out process that often results from a five- or six-figure major label project, where further retakes and remixes are the rule.
Put a premium on efficiency no matter what type of approach prevails--even the lowest rung studio charges $25 an hour and up, so it's in everybody's best interest to work in a no-nonsense fashion. If a song isn't happening after three or four takes, move on to something else.
Have the band run through a song or two to adjust sound levels, and hear how specific instruments are faring in the mix--if the guitarist is overpowering the singer, you should politely ask them to turn down a notch.
Compile cue sheets for each song to note which instrument is on a particular track, and how you recorded it. Save these notes--along with the ones gleaned from the rehearsals--as another reference during the mixing process.
Provide a sounding board for the band, but don't impose your own aesthetic on them at their expense. As a producer, you're expected to get things done--but, at the end of the day, don't forget that you're still working for somebody else.
Listen to the recordings with several questions in mind--do they make up a seamless whole? Do some songs need extra attention, or better off left "in the can" (unreleased)? Give some consideration to the running order, too--although albums are less prominent in the online era, the best song should still be presented first.
Assess each song for its individual technical merits--sound levels should not fluctuate wildly between takes--and if any additional instrumentation or vocals are needed. Other times, it may be necessary to subtract instruments, depending on how intrusive they seem.
If you believe that some songs need remixing, explain the rationale to the band. Often, a song won't reach its full potential without some major surgery. For example, listen to the bootleg version of the Clash's "Should I Stay (Or Should I Go," which boasted smuttier lyrics and more prominent Spanish language backing vocals than its final counterpart.