What you need largely depends on what you want to play and where.  In this section I’ll advise you on the different types of guitar and some of the equipment you might also need (or want!).  Your choice may well be influenced by the type of music or the artists you like best.  Be aware that the best known musicians have greatly differing sounds which are affected by how they set up and play their equipment as well as how they use their fingers and/or pick.  Jimi Hendrix played the same type of Fender Stratocaster as Mark Knopfler, with similar pickups, but their sounds area world apart.  You will sound like you and as you practise, you’ll still sound like you – only better.

Budget versus expensive equipment
Although, to an extent, you get what you pay for, your equipment does not need to be expensive, even if you’re playing in paid gigs.  If we’re talking about an electric gig set-up, you’ll need at least an amp and a guitar and, depending on the style of music, effects.  This could end up costing a few hundred pounds, for a basic set-up.  If you’re starting out or not performing outside your home, you could spend considerably less.  If you buy second-hand and wisely, getting advice from someone who knows, you can upgrade as you go and not lose much money as you do so.

A word from  Hugh Burns
Hugh is a very well know session musician.  You can Google him - he played the guitar solo on Gerry Rafferty's Baker Street and hundreds of other songs in different styles on different guitars for many famous musicians. 

In his studio I saw him playing a red Squier Strat (Fender budget range).  He told me he felt the neck as he passed it in a shop.  Liking this, he tried it and has used it in recordings. 

Hugh has recorded with George Michael on 'Careless Whisper'.  When he went to Denmark, to record 'Faith', he took along a Les Paul and a Strat.  On arrival at the studio at 11 pm, he was told that they wanted an acoustic guitar part.  "No problem, I'll get one in the morning" he replied, but they wanted to record straight away.  After a search in the studio,  Hugh was presented with what he describes as an unnamed, metal bodied acoustic guitar.  "Was it good quality?" I asked.  "It was rubbish.  I spent 45 minutes trying to get it to play properly!" was Hugh's reply.  After the session he wasn't happy with the sound.  He and the studio engineer spent some time on improving the tone.

The point is that Hugh chooses guitars for the sound he wants for a particular show or recording.  So long as it is playable, nothing else about it matters to him.  That said, he tells me he also has a 1960 (pre CBS) Fender Strat, which he bought from Gerry Rafferty.  I'm very envious!