My first post, which you can find here, focused on the geography of your world--the physical characteristics of the planet. But after the first step, you should have some idea of your world's geography, and also a potential map for reference. If you're struggling with the physical characteristics, feel free to move on to:
Step Two: Peoples of the World (Races)
In this step, you should focus on who will populate your fantasy world. Are there only humans? Elves? Dwarves? Goblins? A completely new race of beings that you want to make up?
You don't need to develop the names and cultures of all of your races yet, but it's a good idea to start considering which major ones will live in your world. Whichever races you choose, it's important to figure out which parts of your world they will inhabit, and also what they look like. The climate in a particular region affects the physical characteristics of those who live there. For example, a human who lives in a snowy mountain region where there is little sun will likely have paler skin than one who resides in the desert.
You can also begin thinking about the evolution and history of your races, as this plays a part in where certain types of beings live in a particular world. Have certain races mingled with others and inter-married, creating half-breeds? You don't have to answer all of these questions now, but having an idea of what races inhabit your country will help you on your way to fully creating a fantasy world.
Now it's your turn--what types of races live in your made-up world? In what regions do they reside?