A "best practice" is to perform all of your edits on the full-sized image, use layers so you can pick and choose various edits. This should be saved as either a PS project or as a TIF (tiff allows the saving of layers).
When you are ready to print, submit to challenge, etc., resize your image, convert to 8-bit (if necessary), then sharpen.
Generally speaking, sharpening is the last step before export/output. Keep in mind that there are some sharpening methods that should be done before resizing (e.g. high-pass filter sharpening).
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