Take a 12 x 12 sheet of scrapbook paper and start curling the bottom end to create a point. This makes more sense when you actually try it than it does me explaining it. Basically you hold the point with one hand and have your fingers twisting the paper on the inside to create a good point. Tack down a couple spots and you are ready for a little plastic party cup or florist cup which you can then load with a piece of florists foam. Then the flowers! You can pour water into the cup you've inserted inside the cone because the water will just stay absorbed within the florists foam.
I had mine hanging from shepherd's hooks with ribbons out along the path to the front door. A lovely and inexpensive decoration which can be reused over and over if you store the cones somewhere safe after you are done. So cute!