Instructions
Determine the overall field of of subjects or objects that will be covered in your taxonomy. Articulate clear definitions that describe what will and will not be covered by the taxonomy.
Build major subcategories by dividing the taxonomy into families. Keep your users in mind rather than what makes most sense to you. Ask them if the sub-categorizations make sense.
Use logical means for dividing the different categories. For example, in animal taxonomy, scientists have delineated that all mammals are vertebrates and breath oxygen. Meanwhile, birds (aves) have feathers and wings for flight.
Create further subcategories through more logical subdivisions so that users can easily follow the progression. Arrange the taxonomy in easy-to-use reference guides.