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There are modeling tools to assist as well but understanding the basics is a very important part. I suggest doing some reading first. Here is a great series on database design. Stairway to Database Design: http://www.sqlservercentral.com/stairway/72400/ Other resources for database designs and examples. http://www.databasedesign-resource.com/ http://www.databaseanswers.org/data_models/index.htm

You need to go through the process of collecting the business methods and then use those to define the information that will be stored. You should collect this information in just raw notes. Then you convert that into what is called a logical model, that lays out the information in a semi-normalized structure, or, in an object structure. You can then take that back to the business, reiterate their methods to them, using your structure. If they agree that you both accurately understand their methods and that your model reflects what they want stored you can then go to the database to create a fully normalized structure. Just remember that you need to keep track of what column or columns make up identifying characters to the business (don't get caught thinking that an identity column is identifying, it's unique and automatic, totally different from identifying). Those will require unique constraints (if you don't use a natural primary key, which most people don't). And remember, normalization is actually both a storage mechanism and a performance mechanism, so it is a necessary step when defining storage within a relational engine such as SQL Server. That's it in a nutshell. Have fun!