If your shop is long and narrow, option 2 provides maximum space to the left of the fence for handling large sheets of plywood. If you often work with full sheets of plywood or other sheet goods, you might want to build the table saw into an extension table surround, as San Diego woodworker Pat Curci did in his small shop (see the photo). The surround offers support for large panels, as well as provides an ample work surface near the saw.
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).
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Other important power tools—A good jigsaw will help get you through many tasks, particularly cutting curves, that would otherwise require a bandsaw. Look for one with blade guides that keep blade deflection to a minimum. A handheld drill is also essential. A quality corded drill is much less expensive than a cordless one, and will never leave you without a charge. Also look for a quality random-orbit sander with a provision for dust collection.

Sanding the inside of a hole or curved surface can be difficult. To simplify that task, insert a 1/4 x 3-in. bolt into the pilot hole of a hole-saw cutout. Secure the bolt with a washer and nut. Using a hacksaw, cut a 1/4-in. deep slot in line with the bolt. Cut a piece of adhesive-backed sandpaper so that you can slide one end into the slot, wrap it around the cutout, and slide the other end back into the slot. Chuck the bolt into a drill, and you now have a homemade drum sander. — E.R. Comstock. How to Sand Wood Faster

Spray gun: Not every woodworking job gets a film finish, but most of mine do. And of those, everyone will meet a spray gun. For a million reasons, including making finishing fast and fun, I recommend using a spray gun whenever possible. It will raise your game and make you n0t hate finishing. (Click here to read my thoughts on purchasing a spray gun).

Iron-on edge-banding is a quick way to cover up an edge on plywood. Trimming the excess, however, is tricky. I’ve tried edge-banding trimmers, but I find the results are unpredictable. With the trimmers I’ve tried, it wasn’t easy to change the direction of the cut to suit the grain direction of the edge-banding. If you’re cutting against the grain, you’re likely to tear out a chunk of your new edge-banding. Instead, I use a wide, sharp chisel. This way, I can read the grain direction and trim accordingly. Angle the chisel slightly and go slow, raising the back corner of the chisel just enough so that it doesn’t dig into the plywood veneer. Smooth the corner with a sanding block after trimming. Check out this amazing edge band veneering project!

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I agree with all of these tips in a larger shop. In a smaller shop (mine is just under 400-square feet) most things are fairly close together anyway. One of my original principals for shop layout was … how is a machining process performed on a piece of wood? Is the wood stationary while it is machined … or does the wood move through the machine? If the wood is stationary, I have tried to have this set for one side wall of the shop. To be specific, I have four machines in one line with a continuous table to support long pieces that might need cutting from one or all of those machines. The machines in that line are (from left to right) the drill press, the powered miter saw, the square-chisel mortiser and the radial arm saw.

Let’s be clear about one thing: No workshop is perfect for everyone. If there were, I could simply give you a precise plan to follow with clear dimensions. Every person who comes to the hobby, avocation, or profession of woodworking has his own particular collection of tools and his own peculiar work style, skills, and desires for the kind of woodworking he wants to do that gives him a unique approach as to how he will lay out a shop: where the tools should go, where lumber and supplies are stored, and how much bench area he needs.