Follow the instructions here:
Note it is advisable updating Dell Backup and Recovery to the latest version and creating a recovery USB before installing Windows 8.1 as the update often breaks the programs ability to make recovery media.
Personally I don't like factory settings as they have multiple problems and prefer to clean install so I also recommend requesting a Reinstallation DVD. If you are in the States or CA you may also fill but this form:
Unfortunately Dell have not extended the courteously of an online media request form to customers outside the US or CA you must call Dell Technical Support to request the Reinstallation DVD.
For more details on clean installation see my Windows Reinstallation Guide:
Note if you manage to obtain a Windows 8.1 .iso e.g. if you have a retail license it is better to clean install with it but there are some workarounds required due to difficulties Microsoft made with the 8.1 Update more details here and here:
Thank you for your response. I was able to get windows 8.1 to install by going through the install and shutdown on the power button vs going through windows update. Strange but true. I will bookmark this response for the next time I try a clean install of windows.