On Aaron Walls PPC Blog, hes got a great post on tips on how to setup a proper PPC campaign and is using a very helpful flowchart.

This flowchart offers tips on how to set up a pay per click search engine marketing campaign.

• Many of the boxes are clickable, and link off to useful tools or content that add further explaination.
• This advice assumes you start with an account on Google.com, and then take the best parts and syndicate them to Yahoo! and Microsoft. In some cases you might have more profit margin on the other search engines than on Google.
• You do not need to do every option on each line, they are just tips and ideas that should work in many cases.
• Based on your feedback we are up for making further improvements to this flow chart.

PPC Blog