Usually, you connect the battery to the engine as it would be in the boat. Then at the main wiring harness connector - connect a wire to the 'ignition' location and a wire to the 'starter' location.
Hook up the garden hose to the water intake.
Connect the 'ignition' wire to the battery + and then temporarily touch the 'starter' wire to the + of the battery to start the engine. To kill the engine disconnect the 'ignition' wire.
You can get a lot fancier with switched connections and gauges, etc. When I ran my Merc 454 on a stand, I connected an idiot light to the oil pressure switch, just to be sure it had oil pressure.
Speaking of oil pressure, you will want to make sure you prime the oil system before you start the engine.