Drill a screw into a piece of plywood. Tie on a piece of string to the screw and tie a pencil to the free side. Use the pencil to trace a circle onto the wood.
Cut out the circle along the traced outline.
Apply a piece of painter's tape to the middle of the circle. Paint one half of the wood with paint and the other half with stain.
Use letter stencils to trace a message or design onto the wood.
Paint the letters with the desired color of paint.
Glue any desired decor to the welcome sign.