People do it lots of different ways, my general method -
Drill first
Sand with 400 grit
Coat of primer, dry
Coat of paint, dry
2nd coat, dry
Apply label graphics
Coat of clear coat, dry
2nd coat of clear coat, dry
Sometimes 3rd coat of clear coat
The clear coat I use is good but it takes a.while to dry properly, in summer I stick them outside under a pyrex bowl to get the benefit of UV - I've toyed with getting a UV lamp.