I made a 3-d version of the headlouse character design to help me visualize him more fully, and get the tricky perspectives and camera angles right. The pose I selected was based on this sketch of the character.
I made the head, body, and arms as separate pieces for a couple reasons: first, so I could sculpt it more easily, without the clay all mushing together as I worked on details; and second, so that I could move them around afterwards as drawing references.
While the clay cooked, I figured out a basic color scheme using the sketch on which I based the pose in the model.
Then I mixed paints and proceeded to apply color to the finished sculpture.