Lumber storage is spot on, I think especially for a basement shop – I used to store my lumber at the furthest point from the outside door, and it wasn’t until I moved it closest to the door that I realized how much of a difference it could make. And sheet goods are starting to be stored and broken down in the garage more so I don’t have to fight them into the basement.
Click the image at right, and start building the ideal workflow at the bottom where you see the first red arrow. This arrow crosses through one roll-up door of a typical two-car garage. Note that if the right-hand window were not present, you could place lumber storage closer to the entrance, which would also allow for easier passage onto the jointer. Work flows from the jointer to the planer and the table saw, then ideally onto an outfeed table near position #2 in the diagram. From #2, proceed left to the assembly area (pictured below).

Position #3 is where you will likely spend most of your time in the shop. The diagonally placed workbench is the heart of this plan. The wall-mounted workspace that surrounds the bench forms an ideal “work triangle” within which each of your most commonly needed tools is only one or two steps away. The band saw can be placed outside of the work triangle because it is used slightly less frequently and often needs a little more space around it for your lumber to move.
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When you design your workshop setup, climate control often gets ignored — and that’s a huge mistake! If your workshop or hobby room is in an unconditioned space like a garage or basement, you could find that it’s brutally uncomfortable to work in there during warm weather. You’ll be much happier with a solid fan — or several — to keep air moving for your comfort.
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This style of saw will provide more power than a contractor-type saw and have the high-quality rip fence you need to do good work. However, because they are favored by professionals and serious amateurs, cabinet saws are harder to find on the used market. Scour the classifieds and online sales (be sure to check industrial auction sites as well), and do some networking. Check the bulletin board at your hardwood supplier and ask the proprietors if they know of anyone selling a saw. Also call local cabinet shops. They sometimes have a surplus tool sitting idle that they’d be willing to sell. Take your time in this step. A careful investment will pay dividends in the long run, but a well-intentioned compromise can cause long-term frustration.
Alternately, a detached shop can often be located closer to your property line and offers you a bit more freedom in terms of the type of foundation you can use. It may give you a sense of welcome separation from your home and open up yard space or allow a deck on the back of your house that would otherwise be lost behind your shop. In an urban setting, if you would like to have a wood stove in your shop you may find it more challenging to find an insurance carrier that allows one in an outbuilding. Also, outbuildings can be subject to more stringent height regulations than additions.
Cutting thick, rough, warped hardwood can be cumbersome and dangerous. To provide some control over this process, I built a chop-saw station with wings that extend to support long boards. Again, anytime you make something that consumes shop space, make a shelf underneath to gain storage. The chop saw sits in a recess so that the deck of the saw is at the same height as the workstation deck.

In a woodworking shop, lumber storage is key, and it’s best to design shelves or racks that are about 50 percent larger than you think you need — you’ll almost certainly acquire more materials as the years go on. To maximize a small space, use walls by mounting shelves to the ceiling and purchasing a sturdy step ladder to help you reach things. A wall covered in standard pegboard and outfitted with hooks allows you to customize hand tool storage and keep your most-used hardware within easy reach.
With these three power tools (and a few hand tools), I feel like I could make about 80% of the jobs that come through my shop on a daily basis. Obviously, some jobs will require more specialized power tools to complete, but these three probably find their way into almost all of my work. With that said, there are a few other tools that I couldn’t imagine being without and I feel need to be added to the list.
Shops can range from functional spaces adorned with unpainted wallboard to beautifully finished, painted, and trimmed-out spaces. Ultimately, I think it depends on your budget and how important your surroundings are to your mindset as you’re working, or to your clients’ if they will be viewing your shop. If finishing your shop will improve the quality of the work that you will produce, thereby relaxing or inspiring you, or showcase for your clients the quality of the work of which you are capable, it may be a worthwhile invest­ment. A more finished space may also allow for activities like parties or even a weekly poker game (as long as drinks stay off the tools).
The second corner of the triangle is in the center of the room and, in our case, is where the workbench is located. Following work progress in sequence, the workbench is typically the second workstation where medium-duty work is done after heavier preparatory or wood-milling steps are finished. The workbench is where work is typically done using hand tools or smaller power tools such as hand drills, routers and joinery tools.

In most small shops, once the key machines are in place, others are arranged wherever there is room for them. There typically isn’t enough free space for these tools in the middle of the floor area, although sometimes you can tuck a machine into an unused space. For example, in a shop where the table saw is in the center, a shaper (or a router table or spindle sander) with a table the same height as the saw can be put on the outfeed side of the extension table (see the illustration). Also, building a router table directly into the table saw’s extension table is a great way to save space, as well as make use of the saw’s fence for routing operations.