You will need to set up a space for your woodworking activities. Many times, people will set up a space for woodworking in their basement or in their garage. In setting up your space, you should consider several things. You'll need to look at the amount of space, access to light and electricity, and organization. If you have any friends who have a woodworking shop set up in their home, and take note of how they are set up. You'll probably have yours set up a bit differently to suit your own needs, but you can get some ideas by looking at how someone else has set up their shop.
You certainly don't need a huge space to work in. However, it will need to be big enough to accomodate you, your work, and your tools. If you plan on working on small pieces, such as toys, then you don't need much space. A small workbench, and a place to store a few hand tools and small power tools would be sufficient. If you want to build furniture and other large pieces, then you'll need a larger space, both for your work, and for the necessary power tools. So, keep in mind what kind of work you'll be doing, and plan your space accordingly.
A well lit workshop is a necessity, both for comfort and for safety. If you're having to squint to see the piece that you're working on, you probably won't enjoy woodworking for too much longer. If your work bench is well lit, you'll easily be able to see what you're working on. Likewise, you'll want sufficient light for safety reasons. You'll probably be using a lot of sharp tools, and even a chisel or a screwdriver can be dangerous if you can't easily see what you're doing. Having ceiling lights over your power tools and work bench, along with some desk lamps clamped to stragegic locations along the work bench will provide you with plenty of illumination.
If you're using power tools, then obviously, you'll want plenty of access to electrical outlets. You'll want a sufficient number of outlets for the power tools that you are using. This will prevent unecessary extension cords, which can be a tripping hazard. If you do use extension cords, get some retractable extension cords, which will wind up, out of the way when they are not being used. A few outlets along the workbench will also be useful if you need to plug in some extra lighting or handheld power tools. Also, when locating your power tools, you'll want any accessories to be within easy reach. You don't want to set up your table saw at one end of the workshop, and have to walk clear across the room to find your rip fence or a saw blade.
Another thing to keep in mind is the noise generated by power tools. You'll want to locate your work shop where the noise from the tools won't disturb your family or neighbors.
Once you have decided where to locate your work shop, you'll need a workbench. You don't need to spend a lot of money on a fancy work bench. You just need a space where you can lay out your plans, and work. Choose a workbench with a wooden top, or some other non-marking surface that will not get scuffed up. If you can, then get a workbench with storage space and drawers underneath. Many people mount a pegboard behind their work bench to hang their tools on. If you choose to do this, make sure that the bench is not so wide that you cannot easily reach the tools. Also consider the height of the workbench, you'll want to make sure that whether you are standing or seated, the bench is the proper height to work comfortably.
Just take some time when setting up your workshop, and make sure that you have plenty of space to work. Make sure that you have sufficient light, and access to power. Take the time to set up a safe and comfortable workshop. The more comfortable, the more you'll enjoy your new hobby. Now, once you have your workshop set up, you'll need to turn your attention to wood, which we'll discuss later, and tools.