Figure out who your best passer is and make him your PG.
Figure out who your best Jump Shooter is and make him your SG.
Figure out which player has the best mix of these four skills: Jump Shot, Inside Shot, Rebounding, and Passing and make him your SF.
Figure out which player has the best Inside Shot and Rebounding and make that player your PF.
Figure out which player has the best Inside Defense and Rebounding and make that player your C.
Mostly, the game does this for you by assigning the Position and organizing your players by salary. Higher salary usually means better player, although his skill balance may not work for what you want.
Make the second best guy for each of these determinations your backup. Sell or fire the rest.
On the transfer list (TL), only scout players whose salary is less than 10k. Look for young guys you can train that are an upgrade over the players you have. DON'T spend a lot of money on any one player.
Look to address your weaknesses through the TL and hope to get lucky in the draft. The TL gives you all the info about the player so it is easier to find players that help your team. The draft is a crap shoot.