Suggested way to build theme ready for a live site - while keeping the current theme live

Hi Guys
Can i just get the recommended way or options as to how you recommend I build the theme (using a child theme) while keeping the current theme live
I intend keeping most of the live content and dont want to put the live site down.

Would it be best to use a plugin / can the theme be built and seen only by admin?
Should i install a version in a different folder on the site?

Basically i just want a few well tried suggestions

thanks

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