This will be a personal matter, depend­ing on whether it will be helpful for finishing or sharpening. However, it is a good idea to look beyond your current use of this space to the next owner. Would it be beneficial to add plumbing hookups so that the shop could someday be an apart­ment, or an art studio, or an extension to your house? It could add to the resale value of your house to be able to create as flexible an area as possible by roughing in a bathroom and even a kitchenette area if you can. If this is done when wall cavities are open or before the slab is poured, your forethought could pay dividends but not cost much up front. 
Sanding small items is tricky, as they’re hard to clamp in a vise to work on them. So instead of bringing the sandpaper to the workpiece, I bring the workpiece to the sandpaper. I glue sheets of sandpaper to a piece of plywood; 60 and 100-grit on one side and 150 and 220-grit on the other. Spray adhesive works well for this. Since there’s sandpaper on both sides, my sanding board doesn’t slide around on the bench. Check out these small projects!
As the comic George Carlin might say, a shop is mostly just “a place to put your stuff.” The physical aspect of a shop is indeed simply a space of some kind — a garage, a barn, a teepee — that keeps the rain, rust, and robbers away and houses a collection of implements needed to saw, plane, slice, sand, and pound raw wood into useful objects. But just like the difference between a house and a home, what transforms a building full of tools into a comfortable workshop goes beyond the mere physical aspect.
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