Before changing contents you should plan your required categories and menu items. For example such as below.
Step1. Create your category structure. Either Joomla Categories or K2 Categories.
News
News\Sport News
News\World News
News\Latest News
Step2. Change your menu item types to your new categories which you created above. This way you will not have problems with modules disappearing etc.
Step3. Now you can change your module data location. Such as where the modules will get their data from, from categories you created in step1.
Step4. Now you can delete old demo articles / items / images / menu items. Once you delete old items look at "Trashed" filter to delete them permanently in each section. Such as if you are at article manager on filter boxes select "Trashed" and you will see a list of deleted item but not trashed so delete them permanently.
If you need further help just post in our forums.
See you around...