Is your cellar damp? If so, you may have to correct that problem before installing your tools and lumber supplies. Insulate pipes to prevent condensation. Make sure your gutters outside keep rainwater running away from the house. Cracks in the cement floor or walls should be filled with hydraulic cement; a high water table may necessitate a sump pump to collect water at a low point and pump it out. Any or all of these circumstances may also require a dehumidifier. In any case, dampness is unacceptable where power tools are to be used because of the risk of electric shock.
Shops have value on many different levels. There is the sat­isfaction of having a place to create and work on projects that is hard to quantify, but definitely improves your quality of life. There is the value to your small business of having space in which to work wood and thereby generate income. There is the dollar value of the build itself, which will be a consider­able investment and, finally, there is the resale value of your property after you’ve added your shop. Before you go too far, though, it’s worth asking a local real-estate agent about the potential return on your investment in your area; generally shops won’t add significantly to the value of your property, so it’s worth thinking carefully about what else the space could be used for if you were to sell. The decision about whether it is worth it to build is a matter of balancing all these factors: projected sales balanced against the cost; the cost of build­ing is balanced against what it will be worth when you sell. Woodworking can be a creative outlet, can give you a sense of mastery, and even be a way to give back to your community by donating beautiful pieces to local charities for fundraising auctions, or creating pieces that future gener­ations will inherit. Ultimately, the value of a shop might come down to the emotional and social returns that it will pay you and the people around you for years to come.
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. 
Short scraps of hardwood are too good to throw away but hard to store neatly. So I bought a 4-ft. tube form made for concrete footings, cut it in half (the cardboard-like material cuts easily) and set the tubes on end. I tack the tubes to a wall or a bench leg so they don’t fall over. With the wood scraps stored upright, it’s easy to find a piece just the right length. Tube forms are available in various diameters for $5 and up at home centers. — Bill Wells. Here’s another brilliant use for these concrete forms.
There are many factors to consider when deciding what type of wood to use for a project. One of the most important is the workability of the wood: the way in which it responds when worked by hand or tools, the quality of the grain, and how it responds to adhesives and finishes.[9] When the workability of wood is high, it offers a lower resistance when cutting and has a diminished blunting effect on tools.[9] Highly workable wood is easier to manipulate into desired forms. If the wood grain is straight and even, it will be much easier to create strong and durable glued joints. Additionally, it will help protect the wood from splitting when nailed or screwed.[9] Coarse grains require a lengthy process of filing and rubbing down the grain to produce a smooth result.[9]
My shop consists of a 9×16 storage building, with 3 feet being used for actual storage! I have a table saw, 13″ planer, lathe, sliding mitre saw, home made router table, small compressor, 5′ 4 drawer bench with vice, table top drill press, 6″ jointer, band saw, shop vac, wall mounted hand tool storage, clamp rack, power tool storage, and no room to turn around! But I put out a few nice pieces! Recently built, a 48″ entry table from 100 yr old milled poplar, coffee table from the same re milled red oak barnwood, and a little triangle shaped corner table from the left over red oak, a 7′ x48″ bookcase from old poplar, a small wall mounted poplar book case, and am presently working on a queen sized bed with a mixture of 100 yr old oak and new kiln dried oak, with drawbored pegging using black walnut from a tree from my yard! I’ve also made several mallets that I find useful from my firewood pile using Cherry, ash, hickory and white and red oak. Building anything in 108 sq ft is a challenge, but patience determination, and decent sales will make it work! One good point is that nothing is out of reach! Except maybe the bathroom!
Keep in mind, there are no perfect boards, but try to always use the straighter boards and avoid warping boards. Also, Brandon and I have found that when it comes to picking out lumber at Home Depot and Lowes, they tend to stock up on fresh boards a few days before the weekend starts (so Thursday/Friday). And then, on Sundays and Mondays, the boards are usually really picked over and there isn’t a good selection. Just another tip to keep in mind!

My advice here is to make a detailed list of what the various parts of the build will be (drawings, permits, foun­dation, framing, electrical, etc.) and decide what you would like to do yourself and what you will need to hire others to do. Get quotes on the work that you would like to hire out and estimate the materials you will need to do your por­tion. You may want to factor in your time into the cost as well, especially if you will be passing up other income to work on the project. At some lumberyards, you will be able to give detailed drawings to an estimator on staff who will do a material takeoff list for you of what you’ll need and what it will cost. When all the numbers come in, you can put together a budget and plan for an overrun allowance of around 15 percent. If you keep track of the materials and subcontract costs as you go, you can stay on track and make decisions as you go about the latter stages of the project without regretting it later. If it is challenging to obtain fund­ing for a complete build, you may want to stage the build so that initially the frame goes up and the exterior is finished, and then you finish the interior work as you have time or as funds become available.
Next come two options for the table saw’s trusty sidekick, the jointer, as well as for the thickness planer. Because it’s usual to work between all three tools when dressing lumber, the first option, shown in the illustration, locates the jointer nearest the saw to the right of its extension table with the planer nearby. As with the table saw, it always makes sense to align these tools with the shop’s long axis.