Installing a new water heater begins with the old heater. If you've got an electric heater, replace it with an electric heater, unless you're willing and able to run gas line and exhaust vents. If you've got a gas heater, stick with gas, unless your breaker box has room for (and you're willing to install) a new 240-volt circuit.
Whether the heat source is gas or electricity, make sure you shut it off before beginning work. Electric heaters can be cut off at the breaker box and may have an additional breaker closer to the heater. Gas heaters will have a cut off valve, usually with a red handle, along the line leading to the hot water heater.
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