This is a fundamental question. A good place to start is with a survey of your property. Most municipalities have a maximum percentage of your lot that you can build on and standard setbacks from your property lines that you will need to adhere to without needing to request special permission to build. On a photocopy of your survey you can draw in what your local setbacks are in order to define the location within which you will be permitted to build. In a best-case scenario, you will have the space to build without compromising too much on space or location; otherwise, you may need to request a minor variance, which would allow you to circumvent an obsta­cle such as a setback.

Since most of your assembly will be done on the assembly table, it just makes sense to have your clamps nearby. If you’re short on wall space, try a rolling clamp cart! If you use your workbench for assembly, keep your clamps near the workbench. Check out these two helpful articles for clamp racks: A Simple Utilitarian Clamp Rack and A Parallel Clamp Rack.

In this video Dave Heller shares an introduction to wood veneering and wood inlay for furniture making. What is veneering and inlay? They are traditional methods used to embellish and beautify furniture. Veneering is the process of gluing thin slices of attractive (and often rare) wood onto core panels. Inlay involves insetting wood, precious stones, etc. into the wood. Here's a prime example of one of Dave's boxes that incorporates both techniques: Here is an example
For all of my planning, I must admit there simply was no room in my shop for some tools. I struggled to find a place for my wide jointer and eventually decided against shoehorning it in, instead making a fixture for my router table that joints edges quite well. My scrollsaw, the bulk of my wood supply, and some storage cabinets didn’t make the cut either. These remain in a nearby room.

Natural Light. Natural light is best, so any windows that offer illumination to the space should be put to good use. If you have little sunlight in your shop, locate your workbench so that its work surface gets whatever there is. Even the best eyesight is made better by good light, so the close work to be done on a benchtop benefits from the natural light.
There are benefits to either approach. Sharing a common wall with your house can require some careful soundproofing but can reduce heat loss and exterior fin­ishing costs like siding. A shop located in an addition is more likely to be allowed to have living space or storage space above it, and it may be easier to make use of the existing plumbing and electri­cal and heating systems of your home to service your shop space. Another advantage of an addition is not having to run to an outbuilding in minus-30-degree weather or a summer downpour.
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.
For one thing, the rearrange-it-later approach may simply mean that once you’re set up, the haphazard plan becomes the permanent plan, thanks to sheer inertia (it is a pain to move furniture, after all, especially when some of it is as heavy and awkward as workbenches and stationary tools). For another, too little advance planning may mean you buy a power tool that’s too big for your space.
A good portable air conditioner will also remove excess water from the air, which is critical for keeping your stockpile of wood in good shape. Lumber should be stored in dry conditions so it doesn’t warp, so look for efficiency features that allow you to run the unit overnight in the summer as needed —without worrying about blowing up your electricity bills. Other good features to consider include a thermostat and variable settings that allow you to set your workshop temperature to the perfect level for your comfort.
“I do a lot of finish-sanding freehand, without a sandpaper block, so I can smooth edges and get into nooks and crannies. But the finer grits are usually bonded to thinner paper and, at least for me, the paper is too thin and ends up tearing long before the grit wears out. So I apply duct tape to the back of the sandpaper. The sandpaper is still flexible enough to sand a tight radius and it’s far more durable. You can use this super-strong sandpaper like a shoeshine rag.” — Chuck Merchant
If you work with rough lumber, a planer will be absolutely necessary, except for the most rustic of projects. Every piece of rough cut lumber ends up somewhat not straight, not flat and not consistent in thickness, either from variations during the sawing or from stresses which occur while the wood dries. The planer, combined with the jointer, is a one-two punch to remove these variations and produce straight, flat and consistently thick lumber. The reason the planer is ahead of the jointer on this list is that some lumber is straight enough and flat enough to plane without jointing if the job is a little less finicky, thereby skipping the jointer.
I could write a whole post on wood species as each species has unique characteristics and traits. But, one of the most common types of wood used in DIY projects and furniture building is pine wood (a softwood). Pine is an affordable and readily available option at your local home improvement store and it comes in many sizes. I highly recommend using pine for beginner woodworking projects. Then, as you improve your skill, try working with some different wood species!
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.
Not happy with the selection of sanding blocks at the hardware store, I made a few of my own from hardwood scraps left over from a woodworking project. I cut each one to 3/4 in. x 1-1/2 in. x 4-1/2 in.—which is just the right size to wrap a quarter sheet of sandpaper around. And the “kerf” cut helps hold the sandpaper in place until I’m ready to change it. —Tim Olaerts. Here are 41 more genius sanding tips you need to know.
If your table saw is near a wall and your shop is fairly narrow, positioning the jointer and planer against the opposite wall is reasonable, as shown in option 2 in the illustration. If the shop isn’t long enough to accommodate long workpieces, try to put these machines near an operable doorway, as shown in the illustration and in the photo of Doug Warren’s shop.
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