Institutional repositories are increasingly becoming an essential component of academic institutions. An institutional repository showcases scholarly and research output to the wider community, and significantly helps in institutional advancement and outreach. It has the benefit of sharing and marketing research with others. It also provides an opportunity to raise profile and brand awareness of an institution, faculty and students to the global community. Building an effective and successful institutional repository for an academic institution requires careful planning and enthusiasm from the institution's community. This article describes detailed steps based on the review of the literature and the author's experience in creating institutional repositories. The libraries need to make critical decisions and choices before designing or redesigning institutional repositories. Among them are the funding, staffing, technology, metadata, content and operations to build, manage and run the institutional repositories successfully.