If you haven’t already read step 1 and step 2, you might want to do that first:
Step 1 - Picking a domain name
Step 2 - Research the niche
Building Your Website
If you don’t know html or how to use Dreamweaver (or similar program), well then you are in the wrong place. I’m not going to teach you that here 
You will want to come up with a design for your site. Preferable something that shows some nice image/logo and has room for text content. A good way for beginners to start is to make a simple header image for the top of the page. The name of the site and maybe some type of logo or image that relates to the theme of your site. Place this on the page and use the rest of the page for text and links.
Now that was pretty simple. Before you go any further, put a link on the bottom of the page. This link should be Keyword Phrase Home or just Keyword Phrase. Link that to the index page of your site. Also, link the header image you just made to the index. Put in the alt tag…alt=keyword phrase. The top and bottom do not have to be the same phrase. Similar is fine. Maybe you are promoting the As Seen On Tv Products or Unique Gifts from Mixed Goods. If your focusing on As Seen On Tv Products, then have as seen on tv in one place and as seen on tv products in the other.
Next layout the rest of the page, put an area for pictures and/or text. Add 1-2 area’s for other ads. Maybe one on the side and one on bottom. This will be our ads for Google Adsense and Friend Finders.
Header Text
Once you have the layout done, you can start laying out header text. Put the words Header Text 1 (set as H1 in the font settings) right under your header image. Next put Header Text 2 (set as H2 in the font settings) in the text or picture area. Finally put Header Text 3 (set as H3 in the font settings) in the ad box on the side and ad box on the bottom of the page. Now if you don’t like the big text (which I don’t) you can pick a font and a smaller font size for these.
Meta Tags
Place your meta tags in the top of the page, just under the html tag. These will be your basic tags. Here is an example:

In the classification, I usually look at dmoz and find categories that my site would match. That is what I use there. First this will help you focus on what type of site you are building, second some search engines may pick this up.
Website Template
Now save this as your index page and then as temp or template.html. This will be the page we will start with on everything else we do for the site. You will adjust things on each new page you build using the template, like keywords, title, etc. But you have the basics ready when you get that far.
We will start building more tomorrow.