Start with a square of wood. I had them cut for me at home depot from pine. They are only about 1/2 inch thick.
Cut a piece of paper to the same size as your wood.
Draw your picture on the paper.
Once you are ready to transfer the picture to the wood, rub chalk or pencil on the back of the paper. Place the paper over the wood, and trace your picture. This will leave a mark on the wood. Do the same for the words. Print them the correct size and font on the printer, rub chalk or pencil on the back and trace the words onto the wood.
Wood burn using a very hot tool.
I used a combination of paper and acrylic paint on these. To use paper: make a rubbing of the woodburned piece, and cut out the pattern that the rubbing made. Trace each piece onto the paper that you want to glue down.
Once the entire thing is painted and covered, be sure to spray it.
I hang it with a picture hanger nailed into the back of the wood, the kind with teeth, purchased from the hardware store.