Choose a date.
Look at your calendar and pick an open date that is also clear the day before so that you have time to prep.

Decide how many people you can manage.
Make a guest list, including contact information for each attendee. For a formal gathering, invite guests with mailed invitations; for a casual occasion, email or phone invites are fine.

Decide on a menu.
Ask yourself some questions: Do any of your guests have dietary requirements?
How do you want the food to be served—sit-down, buffet, or family-style?
Write the menu with your appetizers, main course, and desserts, and decide on what cocktails and wine you would like to serve. Based on your menu, make a grocery list divided into sections of produce, meat/seafood, dairy, pantry, etc. for efficient shopping.

Set the table the night before.
Get creative with the table’s décor; try using flowers, fruit, or objects that go with the theme of the party. I always use unscented candles on the table to create ambience.
Also, set out all of the serving dishes and utensils you plan to use.
This way, if you are missing something, you will have time to get it before the party.

Create a playlist
Select songs that enhance the mood you are looking to create and make a playlist for your iPod. I like something upbeat for cocktails and mellow for dinner. Be sure that the volume isn’t too loud—nobody should feel the need to shout above the din.

Properly equip your guest bathroom.
Put out fresh hand towels, soap, a scented candle, plenty of toilet tissue and a small flower arrangement in the bathroom. (A discreetly placed plunger will help avoid any embarrassing situations!)

Designate an hour to get yourself party-ready.
Choose an outfit that makes you feel stylish, yet comfortable enough to still work in the kitchen. I usually avoid light colors to prevent any obvious stains if something splashes on me while cooking.

If something doesn't go according to plan, don't announce it.
Your guests will most likely never know the difference if you don’t tell them.

Relax!
As the host, you set the tone for the party. If you are frazzled, your guests will feel it. Guests should feel comfortable and welcome at all times.